On June I am starting a Bitcoin Trading experiment, so i decided to share it here for accountability. I plan to post some updates and any interesting stuff i discover along the way.
The Rules are:
- Specific duration– 6 months
- Standard investment – 100€/month
- Simple system – buy/sell every step of 100
- Stick to the strategy – no matter what happens, good or bad
I don't know if the system I'm going to follow, really is simple or complicated. I do know, that it is a system that only requires a few minutes of my time every day. It doesn't really matter to me, if the price of Bitcoin goes up or down during this time. Actually, this system works best when the price of bitcoin is constantly moving up and down in a price range. A big sudden drop or rise are the worst things that could happen.
There are various tools out there to help me monitor what's going on (alerts, mobile apps to place orders and even bots to automatically trade for you in a given range). I don't intent to spend all day looking at a screen for Bitcoin movements. The world will not end, if Ι miss an entry or two. I might even only do a quick check each day after work, just to set my orders and let the system run unattended. My main goal is to buy some bitcoin within the next 6 months. Instead of investing the total amount at once, i hope this system will help me buy it at various prices.
The other good thing Ι see in this experiment, is that it will help me trade without emotion. Regardless of what I would hope for or any hunch that I may have about the price (my guts scream BUY NOW right after the halving...) I have to follow my system's rules. My hunch could be true and I could win a lot more, but it could also end badly. With setting a system there is definitely less thinking and less stress involved. So let’s stick to the plan and see what happens!
The big picture
This experiment makes a lot of sense to me. I already know the worst case scenario: I may waste my money and my time. But on the other hand, I don't really know exactly what I have to gain until I try it out!
I can already think of the following advantages:
- the experiment will help me invest a fixed amount in Bitcoin in the next 6 months
- I will learn how to read Bitcoin price charts
- I will learn how to place buy/sell orders at an exchange platform
- I will use a specific trading strategy with specific, pre-set rules
- I will be forced to follow the strategy Ι have set
- it will make me deal with possible problems that may come up, that I can't even imagine right now
If you want to join me get ready, we are starting in June. Or maybe just get some popcorn and follow my updates to see how it goes. Either way it will be educational (for me) and entertaining (hopefully for you).