Post
Topic
Board Trading Discussion
Re: Who are the 1% of traders who earn with trading?
by
Ucy
on 24/12/2020, 16:36:44 UTC
I would simply invest the $100 long-term and forget about it... then use additional fund held in stablecoin for gradually buying dips/lows, and probably selling high. This method usually turns out profitable especially on established crypto like Bitcoin... And it's not that difficult to learn.

Not difficult to learn, but hard to implement in reality. Typical example would be (I don't mean you, but the average trader) - you keep $100 for long-term, and have $100 for active trading ("gradually buying dips/lows, and probably selling high"). Then you put the second $100 into something, and price moves not how you expected. You sell (if smart, others will continue to keep - increasing the loss). Then you decide that it's time to re-enter and you are confident about that, so you take $20 from "long-term" because expect to earn $40 - enough to recover "long-term" fund + make money on active investment. Then you lose that also. Then with a strong desire to recover the "long-term" fund, you will take more risky and less reasonable bets thus magnifying your losses and faster depleting the overall fund.






I would simply invest the $100 long-term and forget about it... then use additional fund held in stablecoin for gradually buying dips/lows, and probably selling high. This method usually turns out profitable especially on established crypto like Bitcoin... And it's not that difficult to learn.

Not difficult to learn, but hard to implement in reality. Typical example would be (I don't mean you, but the average trader) - you keep $100 for long-term, and have $100 for active trading ("gradually buying dips/lows, and probably selling high"). Then you put the second $100 into something, and price moves not how you expected. You sell (if smart, others will continue to keep - increasing the loss). Then you decide that it's time to re-enter and you are confident about that, so you take $20 from "long-term" because expect to earn $40 - enough to recover "long-term" fund + make money on active investment. Then you lose that also. Then with a strong desire to recover the "long-term" fund, you will take more risky and less reasonable bets thus magnifying your losses and faster depleting the overall fund.


I prefer not to spend all the $100 for active trading at once. Will simply keep the $100 in a stablecoin and probably use a small part of it (maybe $10-$50) on daily/weekly basis for buying significant dips. If price continues to dip significantly, I would continue buying. When it start moving up again, I will probably sell off some gradually. This (buying significant dips & selling significant highs) repeated many times can easily earn you significant profit every month.