Post
Topic
Board Economics
Re: The HODL strategy is not actual
by
Betwrong
on 18/04/2018, 18:14:30 UTC
While holding blindly is not the best strategy it is way better than trading blindly

That remains to be seen, actually. When you trade blindly, you will very soon notice that you do something wrong, you won't have to wait like a couple of years before you come to understand that your strategy simply doesn't work. You just shouldn't be blind yourself. But if you are, then no strategy will bring you profit, neither trading nor holding. In this way, it is really hard to say decisively and conclusively which approach is better and which is worse. Personally, I think that trading is a faster way to see if you are doing something wrong and then make changes to your investment decisions.

Trading also is a faster way to lose all of your investment in it. Is there a way to know what exactly you did wrong and to trade successfully after that? I don't think so. These two strategies, trading and holding, are almost the same in respect of expected profits/losses, but imo trading is more risky if you are not a very good expert in the field. But you don't have to be an expert to hold BTC while waiting until Bitcoin development team, who are good experts indeed, will make Bitcoin working better, which will make it more popular, which will increase the demand, which in turn will contribute to the price rising.

Honestly, I don't see what you are trying to challenge here exactly. Yes, you can lose all in trading but how is that different from losing all in holding? Apart from being faster, I don't see any essential or existential difference. However, in trading you can stop just in time when you come to understand that you are doing something wrong and losing instead of earning. Yes, it is not given that afterwards you will learn how to trade profitably but it doesn't mean either that in no case you will learn anything. On the contrary, people are not born trading experts, it is typically a windy and curvy road to success.

What I meant was that it is practically impossible to lose everything, or say 90% of your investment, by holding a decent coin in a short period of time, while it is possible with trading. When you trade you can get profits faster but you may end up losing a lot pretty fast too. Just compare what you can lose with holding in one day, which is 20% max, to what you can lose with trading. I think losing more than 20% with a bad trading strategy in one day is a common thing, while it is very rare with holding.

It could even be said that until you try to sell the coins you hold, your losses are only on paper. Even holders of shitcoins can think that. But does it mean that they will ever be able to book profits or just break even? Not necessarily. In trading, if you cut losses (otherwise you will be holding), this is pretty much it. If the coin is set to fail, doing so will put trading clearly over holding. If you just trade and see that you don't earn enough or don't make it at all, you will soon get done with that (or change your approach). Obviously, it is not possible with long-term holding. It is either sink or swim, neck or nothing.

That's why trading is better unless you don't feel like doing it for your own special reasons.

Well, maybe you are a good trader and that's why you are advocating trading, but I'm definitely not one of the best in the field. Every time I try to trade I lose at least 20% of my balance on an exchange. And that is in the best case scenario. Once I lost 80% with a sh*tcoin which had started to fall right I bought it. I'm going to learn how to trade with profit in the future, but holding is the best option for me so far.