Technical paralysis and penny coins

in LeoFinance4 years ago

I am not much of a trader, but I do have a winning strategy - are you ready?

Buy low - sell high

I know, right? I should write a book.

However, at times like these where the markets are pumping, it is pretty easy to do if you follow my expert guide on how to effectively trade crypto. As I have said before, there is very little actually backing any of these pumps other than speculation and even "hype" doesn't account for much, as most people trading don't really know what the projects do, they just buy and sell in and out of them to increase their Bitcoin portfolio.

Just so you know - this isn't any kind of advice, but it is how I have traded since I don't have the foggiest about how to read charts to predict pumps. A lot of people buy what others are buying however, which is probably why this works in small volumes. However, there is so much bot and wash trading going on, that the entire market system is a bit of a joke in my opinion - not that my opinion counts for much.

Ok, so here is the "trick" I use to make massive gains!
Note, I don't trade large amounts, but have grown my stack over the years

I started doing this back in 2017 when things were starting to kick off around September or October and was able to add a bit to my holdings. I then went pretty quiet on the trading front during the bear for several reasons, one of them being that I needed to get a little more rest as I only average about 5 hours sleep as it is and I was spending a huge amount of time on Hive.

Oh yeah - the trick.

So, buy low, sell high is a great message, but what is low and what is high? Buying Bitcoin low in 2011 is different to 2018 and 2020. Holders from 2011 are pretty bloody happy the Bitcoin project survived, but with so many projects out there now, how many really will make it another ten years? I am hoping Hive is one of those, so I am slowly (rapidly) extending my position for numerous reasons, including that it is a socially powered token, unlike Bitcoin that is far more individualistic. Getting rich on BTC doesn't have to benefit anyone else in the process, but I think the community aspect of the HIVE token means that it is possible to have many people work together to add value to each other.

So, what is low, what is high?

Well, what I do with small amounts of value is look for the flattest token trends I can find that haven't been pumped for awhile,have low volumes - and buy those. Then, I set some sells between 30 and 150% up and wait. Pretty much eventually, the bots and speculators come along and pump the tokens up and I take what I get. Some of these projects might be great projects and will last the distance and go far, far higher, but there is no guarantee in this - not all are going to be the next Ethereum and as I see it, most are going to fade to zero.

The most recent example of this is that I have been trading Holo (HOT) for the last couple months and bought a bit between 5 and 6 satoshis and the trading volumes were around 7BTC a day on Binance. Currently, that trading volume is 100x that with 780 BTC trading there in the last 24 hours. It is very possible that it goes far higher than it is today, but I am happy taking 40-60% profits on it.

Even though the amounts I am trading aren't huge, they are significant for me if in 5 years Bitcoin or Hive (that I buy also) do what I and many others hope they will. This method is about as unscientific as one can get, but I think that it has a level of risk that I am comfortable with. A big problem that I had back in 2017 however, was that I held a lot of shitcoin bags all the way down, and I still have many of these tokens that have turned "penny coin" since the start of 2018. But, this is the risk with it all.

Back then, my STEEM holding value was worth far more than my total holdings now, but that is part of the trading life. A lot of people who sold, never bought back either and while I was unable to buy BTC when it hit 3500, a lot of people who sold at the highs were too shy to return to the markets and instead, took their profits and enjoyed life.

The problem is that in order to increase values again, one has to have Available resources to invest and many don't. Since I also don't have available resources these days, I have bags of shitcoins that I can play with, buying and selling what once had far more value to perhaps build up that value again. I still buy what I can with fiat - as I am trying to move away from the centralized currencies and support the future - as I have no confidence in the traditional structure and believe it needs to be replaced.

While I do want to one day be able to use this value for some kind of personal benefit, currently it is more like a game for me, my way of entertaining my mind whilst still doing something productive (in my head at least) that could lead onto other things. Some people watch a lot of internet stuff, some people play in other areas of life - I enjoy playing with these kinds of things too.

Buy low, sell high - have fun.
Your money, your responsibility

Again, I do not recommend this as a trading strategy to live by, but it is interesting to observe just how ridiculous some of these pumps are in regards to the projects themselves. I also recommend, holding a few small bags after taking some profits - just in case ;D

Taraz
[ Gen1: Hive ]

Posted Using LeoFinance

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Lol I like your style there buddy, I am in a similar place in that I also bought some bags of coins in the bear market and am waiting for them to pump once more back into profit for me. I do still buy BTC when I have spare cash and the price dips, though like you it is only small change. I'm not so confident that Hive will pump in value. I am more cautious since seeing Steem go only down. Let's hope the BTC bull run pulls the Hive price up with it.

Everything is connected to BTC, but I think that given time, Hive has a massive future open to it, though "luck" will still play a big part in it. I suspect there will be some runs coming soon, but nothing to get too excited over for the long-term user. :)

!ENGAGE 25

I appreciate your insights buddy, I hope to make Hive a source of survival income in these changed times as my other career collapsed. So price will need to climb a bit lol.

Thank you for your engagement on this post, you have recieved ENGAGE tokens.

My essential problem with your advice is knowing when a coin is low and when it is high :)

In truth, any trading I might do (and it is small) is really about increasing my Hive portfolio. It's my aim point, and profit or loss has very little to do with my decisions.

I believe when it comes to longevity that Hive has to include the Steem years. Essentially Hive came to be from a flaw in Steem that became brutally apparent when Justin Sun bought Steemitinc. The work and dedication put into the chain prior to JS counts. Hive is a continuation rather than a new program.

So. At the end I have advice for trading too: Don't do what I do. 😂

yep, the stacking of coins is more important than value and perhaps something that I should have mentioned is that the value I talk about is coin volume, not USD or Euro. They are pretty meaningless :)

The work and dedication put into the chain prior to JS counts. Hive is a continuation rather than a new program.

Yep and what I like about it is, there is still continuity even though the name has changed.

:)

!ENGAGE 20

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It's a fine strategy. I do exactly the same but with smaller margins. Often I aim for 10 - 15% and with some coins rinse and repeat after the sale has gone through watching it dip back down. If you have the patience it'sa splendid thing for a slow grower!

It takes some patience and I used to have smaller margins, but time has got the better of me, so I set and forget far too much. I wonder how much I have forgotten :D

Untold riches lost in the fog of forgetting!! Seek and ye will find treshur!

unless the random exchanges have cut and run!

Buy low - sell high

That's a good one. My other favorite is know when to hold them, know when to fold them.

Buying stuff that is flat and low volume is something I do a lot. That said, I have a list of the top 200 coins I will touch and those I will not touch. Also I look for things that have a bit of history, I don't like to mess around with something that is younger than 6 months if there are too many unknowns.

Yeah, I generally make sure something has stuck around for a little bit as well, as there are heaps of scams out there imo. I don't have XRP ever.

No XRP? That's been one of my most profitable coins. I bought it simply because alt coiners hate it so much, but it appeals to institutions and those not so familar. Yeah I know its separate from ripple, also it costs money to make a wallet...which I think is unique (hive does have a paid wallet option too and it's also awesome).

That said out of the big ones I shun monero, bch, bsv and dash.

I used to trade XRP back before I knew what any of them were. I have a little Monero, haven't seen or heard from Dash in forever and never got into the Bitcoin forks.

You sounded so much like Warren Buffet in this, this advice never grows old and it is brilliant in its simplicity. Having the resources to invest is difficult if someone wants a huge fast reward on crypto. But taking it slowly, doing it with the best of what it is now, is way ahead of those who dismiss it completely. In 10 years from now, those who put just a little now in the crypto will be doing a lot better than those who refused this possibility to themselves

!ENGAGE 20

The slow build is likely going to outperform the hail Mary (nothing personal ;D) attempts and it also gives time and room to live and learn without losing the farm. The benefit on Hive is that it can be earned without capital in, which is pretty awesome. :)

Earning with no financial capital in... That is indeed great. I think the only capital invested is time, creativity, quality content. Which it costed the creator years, education, time, effort. So funny thing that you don't need any other capital than the best version of yourself put out there.

I think on Hive there are going to be (and already are some) many people who had very little and gained a great deal. :)

Oh that's so true. I told to myself that if I will gain some true friendships here, I am the luckiest ever. I find this to be the biggest gain of any human interaction : sincere friendship

Well, I can only trade white rats and for those who ask, white rats are live and not coins lol.
My "Token" list looks like it has measles with all of the little dots and I am patiently waiting for it to grow up into adulthood.

Note, this is not financial advice. hahaha.

I never know what is a lot or is a little, as it is going to depend on where one lives. For me, I have a little, but to some it will seem a lot.

Well, I can only trade white rats

Dangerous words in SA :D

Hahaha, I should have said "pet white rats" lol.

Pretty good strategy, I do exactly the same but I make a Stoploss just as it makes a lower price ever, since I think it can go lower then and I don't want to taste the falls hahaha.

One coin that I have been following is Steem against Btc, since ir gets some day in a flat range and then pumps and since it had been doing so for a while now it can be predictable

Yeah, I have been terrible at setting stop losses and, my losses show it :D

I don't touch Steem other to sell whatever I have left - it is a personal ethical thing in that case :)

I have been wondering how these things work for a while. crypto trading is still not very enlightened for me. but your article was a little enlightening for me. Maybe I'll take a look at the big sell trick. :) I wanted to thank you for your experience by effort. have a nice day.

I wouldn't use this as a trading guide if I was you, but it might be fun ;D

Once again another post I can relate with. I don't usually dive head first into anything that's why I have kept my distance with the whole forex and crypto trading till now. Too much information flooding everywhere and not enough genuine people willing to be absolutely truthful about the risks and rewards. But buying low and selling high still sounds like the way to go. Thank you.

Always assume, it is risky - Don't invest what you aren't willing to lose completely. Never go into debt.

I like earning Dogecoin and others for Free.....

You seem to like earning whatever you can get for free =)

Yeah. Especially when it’s Dogecoin.

This is something I will try to do. Buying low and wait for it to rise. I mainly trade Altcoin rather than Bitcoin. My current investment is in OMG. Let's see how Bitcoin can perform with its rising price now as it does affect many other crypto even after all these years.

!tip

I remember when OMG was through the roof - crazy how far things have fallen.

This post is not a trading guide, just what I do for shitcoins :P

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I try trading crypto but there always the risk of you know losing money and sometimes I just can't wait and make mistakes but shit happens this is life ... so ill try stacking some coin

Good one