I started getting into cryptos as of September 2018. As you can notice, there was something similar with today’s period – ugly and rough bear market which took over the whole 2018 after the crypto bubble burst in the last week of December 2017/or beginning of January 2018.
I remember I started with Basic Attention Token, Presearch. At the beginning I felt desperate, the market didn’t play in my favour.
At the beginning of the year 2019, I started to notice boring sideway trend which lasted almost 2 months and there I decided to pick some cryptos in February.
I selected them using these criteria:
1) Fundamental analysis. It had to be a crypto based on solid project. For example I picked BAT based on its star product – Brave. Or ADA because of all the marketing’s effort of Cardano’s corporation.
2) TA – My knowledge of TA is limited, I recognize it. I barely draw 3 trends, use Moving averages and RSI. And I was checking the trend formation and consolidation conformation. I was observing the graphs on Coingecko every single day.
3) Something that not many people mention: Percentual decline from the record highs.
For example: I bought BTC at 3,200 USD (out of 19,800) – which was almost over 84% less.
I also selected ADA on that criteria: which was over 95% less from the record highs.
And also BCH which I got at 120 USD, which recorded over 95% drop from its record highs above 3,000 USD.
The higher the drop, there were more chances of higher profits. Not all the cryptos wake up to bull run the same day.
I won’t deny it, I made a lot of mistakes.
I will mention some of them, so you can recognize if you tend to do some of them:
1) Sometimes you get obsessed with certain crypto. Don’t jeopardize your profit only because you had a hunch on one crypto. Don’t put all the eggs into one basket = Principle of diversification. Composed crypto strategy has been the key tool, which has worked out for me the best.
2) If you get over 100 – 200% of profit don’t be waiting there forever for 300% or 400% because there will be some downward adjustment. Sometimes it’s good to accept some gain and check other opportunities. In short words, don't be greedy!
3) Not having enough information about one scam project where I lost a lot of money. If someone promises you 10% fixed profit every day, say no! It will be a scam 99.9% guaranteed.
4) Not be enough prepared, be sometimes too much emotional during the trading isn’t a good thing, if you start doing it on regular basis, you will tend to develop “colder blood”.
5) If your loss has been higher than you established (for example over 15%), sometimes it’s better close the trade, accept the loss. Many traders lose all their portfolio because they don’t wanna lose; it’s impossible not to. Let’s say you win 8 trades and you lose 2. It’s Ok, this ratio. If you have a rough day and you don’t feel comfy at trading, it’s better to get out of the trading. You don’t have to replenish all your losses that day. Go rest, do something for fun, and get back when you feel ready as of next day.
I also recommend you to learn more on trading, visit more Trading community, watch Scrembo’s videos or Jules’ analysis of MrBullishSail Crypto Trader’s tips, together with Ash Roulston’s advices. Steven’s TAs are also cool. All of them are professional traders and they know what they are doing.
Educating yourself is a worthy investment for yourself, don’t hesitate to do so. Some of the traders also offer custom tailored courses for your needs. But there is also a lot of free material, as well.
And remember also another thing; even if you made one of the best TA or that TA has been performed by an expert, there will be always certain % chance that the market may turn against you. That chance goes between 20-40% depending on how the TA is well done.
So take your time, observe ahead of time, analyze and perform your selection because this bear market one day will end and bull run will wake many cryptos.
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