Friday marked the end of my first full month of trading in Crypto and three weeks of blogging on Publish0x and I thought it would be a good idea to review things for the benefit of the community. Of course providing a succinct summary works well for my own analysis too.
The first thing that delighted me was when I suddenly found one of my posts in first position in the popular list. I even screenshot it, such was my happiness.
During the middle of the month I introduced a whole lot of approaches in my series Tactics for Newbies, to which I will add another tomorrow (Breaking Down the Wall).
To be absolutely honest these approaches were introduced as a result of both a sound financial understanding and despair.
I understand finance, and how to form strategy, but as I have repeatedly said, if you lack the ability to read the market then it is for nothing. We must always remember that having all the right equipment in itself doesn’t guarantee success.
And this is where despair begun to kick in. I started trading on 11th June and by 30th June and while I am not going to share actual figures my portfolio had shrunk by 11.88%. This is a shocking loss and ultimately unsustainable. Early July looked like it was going the same way and even at one point I looked like I was going to sustain a compounded 15.85% loss, or almost an additional 4%. That was a massive chunk of my portfolio wiped out just like that.
So I needed a complete rethink.
Buying Crypto and waiting for it to go up wasn’t working and what is more the most frustrating thing was that I had made some great decisions (remember the run on Chainlink?), but it seemed to be that one bad decision (I curse Kyber Network, I had anticipated a run in the third week of July, but it was still settling in a downward direction) undid several good decisions.
As with all things in life the power of negativity outweighs the benefits of positivity. Marketing has always worked on the basis of a 7:1 ratio. One negative equates to 7 positives that must be delivered in different and innovative ways. Nowadays it could be argued it is even harder. The stereotypical millennial is devastated by one negative comment on their social media even if it is in a sea of likes.
With a rethink I designed the Internal Conversion Engine (click to visit) and through the diligent application of its processes July finished with a net gain of 3.54% and most of that was achieved in the last week..
That is a remarkable turnaround. I haven’t done the exact figures because I didn’t save the worst case scenario data, but it probably represents a turnaround of about 8%.
Yes, I am still behind, but I have stopped the rot and started turning it around. Most of this has happened since the enforcement of all of the tactics discussed in my series, which I have referenced at the end of this article. I know it is not the most popular of wallet services and I could do better, but I have stuck with Coinbase as I love its simple interface. I am wary of Coinbase and part of my rapid learning curve was to avoid their traps (I discuss this further here).
I decided rather than using my fiat currency (GBP) as my holding account I would use TEZOs instead. By milking the cow and playing the margins between TEZOs and other currencies I leveraged a gain in net TEZOs of 12%; that is an increase on the number of TEZOs held and is not a monetary value, which fluctuates all the time. Milking the Cow increases both the investment fund and sets aside as additional TEZOs, which always represent profit however the currency is performing. Once more this fuels the ‘alternator’ in my engine in that I can then use this pure profit to leverage ever increasing numbers of TEZOs. An increase in my profits when using this methodology is as much to do with QUANTITY as anything.
It also becomes less pressured when taking your eye of the money and focussing instead on building your portfolio.
Another major change was that I started CONVERTING rather than BUYING and SELLING. Fees that I had been paying were significantly reduced as were the amounts I was forced to invest to meet the lowest fee percentage parameter. I even invested the equivalent of one TEZO at one point into another currency and when the margins shifted I got 1.2 TEZOs back. I know it doesn’t sound like a lot, but that is a 20% increase in my holdings and it simply wouldn’t be possible through BUYING and SELLING.
So to summarise. Excellent progress has been made and while I still have some gaps in learning how to read the market I am getting better and now I have robust mechanisms in place to maximise the leveraging.of my portfolio.
If you want to read more, please consider my posts on:
Tactics For Newbies
Crypto Strategies - An Introduction
Milking the Cow
It’s Not All About Money
The Magical Money Tree
Blending Strategies (the Internal Conversion Engine)
Putting the Brakes on!
Breaking Down the Wall (link to be added)