Quote:
Originally Posted by karl262
Interesting...so out of curiosity over the last 30 days we've seen some pretty wild movements in the price of ADA, yet the value now is the same as it was exactly 30 days ago. How did you fare if you don't mind me asking? (I'm cool with a pm)
I often look at historical prices and calculate what could have been buying and selling at the optimal times. I like to torture myself you see.
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My crypto day trading strategy is simple but effective and follows some simple rules:
1. Never invest or trade with any funds you can't afford to lose. As highly unlikely as it is things could severely crash and if you can't afford to lose that money don't invest it.
2. Buy low/sell high - obviously everyone knows this but there are some nuances to it in crypto. I always try to sell around the daily high and buy back in around the daily low. Sometimes I end up selling too soon and it keeps going up and sometimes I buy back in too soon and it keeps going down. But by following this rule I always increase the number of coins i have.
2. Never buy or sell at a loss - if you sell high and it keeps going up wait until it goes back down. There is always a correction. Similarly if you buy in and it goes down be patient and it will go back up and you can sell for a profit again.
3. Never panic buy or sell - last week crypto had a huge drop across the board. A lot of people had stop/loss orders and sold at a loss but if you just hung in and waited for the price to rebound or bought more when it dropped within a matter of 12 hours it had recovered most of those losses and you could have had a nice 20-25% profit when you sold again.
When I buy or sell I go all in, unless I suspect potential for more movement one way or another which often happens in a volatile market then I will sell or buy maybe 50% and see where the market is. If it drops more buy even lower and if it goes up I'll either wait for a drop again or sell again for a profit if it keeps going up.
Trading fees aren't much to be concerned with. For example on Binance trading 1000 ADA costs like 1 ADA so even trading multiple times a day you will always make much more than your fees. Even at higher fees like some exchanges have I still think the fees aren't a huge concern.
I am trading pairs ADA/BTC and XRP/BTC and I never concern myself with the price of the BTC as my goal is to increase my XRP/ADA coin numbers regardless of the BTC price fluctuations.
Another thing is always try to know as much about your coin as possible. Just like the stock market news coming of potential partnerships or uses of the coin can lead to some huge daily gains and other news like Bidens new tax law for an example can create some record lows and great buying opportunities. Reddit groups for coins can be good as long as you can distinguish the real from the fiction and know that some people in there post to serve their own interests (like any stock group on reddit too I guess)
I'm sure if I learned more about how to read and interpret crypto charts and graphs etc. (which I intend to do sometime) I could improve my profit percentage but just by following my simple plan I have averaged about 16-23% monthly gains and the more coins you accumulate the more you have to trade.
Of course the results will depend on the volatility of the market which I don't see stabilizing anytime soon.
Hopefully this long post helps some people.
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