RE: BTC almost $4,000!!! Will it hit $6,000 or more? Where do I take profits on my Free coins?
Hey Luc, I love your videos and am at the stage of playing with small trades to make sure I'm understanding how to find my bases; thank you so much for your time and effort!
I had a question on trading alt coins with bitcoin. Do you have a simple method for determining/adjusting your selling points when bitcoin is rising? I've noticed you mention you keep most of your account in USDT, but some things you'd have to use BTC for right?
I've posted a chart below for reference on my question. I made a small trade on EOS anticipating a bounce, only to see it fall way more than expected over the last three days. However, when i did the math of what i'd need to sell to break even, my selling price is lower now that bitcoin has shot up by 3 or 4 hundred. It made me realize the fall might not be as bad as it looks. I was just wondering if you might have already dealt with this problem and found a good way to process it.
First of all I see now that my bases marked blue were not as strong as the previous ones marked red so maybe I acted too hastily, but again it's a small trade just to learn so no worries. And I'm certainly learning :)
What I noticed after some calculation was that the green circle will currently net me back about the same amount I would have made if I'd sold at my original blue circle back when the buy was made at a low point. I basically just planned to sell back at my base to be safe. But at this point my base (in reference to USD dollar amount of payoff in bitcoin) is lower on the chart due to the price of bitcoin going up.
This is kind of hard to explain, but hopefully it's coming across. Just wanted to know if you had any guidance or methodology on this observation.
Thanks again for being such an awesome teacher!!!
So you put your base at 0.00051? I did as well and bought at 0.00047+ and now it went deeper than I expected.
Yep, that's about what I was thinking. However with Bitcoin going up and Eos going down the spread is getting farther apart. So now I can move my sell point lower and still make roughly the same as if it had immediately bounced back to my base. It can get a little confusing trying to calculate it all though.
Just to revisit this for clarity, I bought EOS at 0.000491 when BTC was at 3570.
Right now I could sell my EOS at market at 0.000400 while BTC is at 4100 and I would almost break even. Though even when zoomed out to a full month on an hour chart the difference from .000400 to .000499 looks huge.
It's tripping me out a bit. On the chart it won't look like it came back to base, and I'll have less BTC if I trade it back now, but in relation to USD it'a about the same.
I agree, It seems that it will be difficult to make an actual profit in USD or EUR.
When BTC is going UP, EOS will go down and visa versa.
At the end you would like to exchange it to USD(t) or EUR but you can make fantastic trades in EOS/BTC but your result in USD could be the same as you bought it. I probably don't express myself clearly but I understand your question :-)
Now, it's time to create a strategy :-)
I hope Luc replies soon, but I am not too worried waiting it out as all these are supposedly 'good' charts that will rebound one way or another.