Nice Ryan, always appreciate your advice.
Let me ask you something, I only have 1btc to trade with. Is this enough?
Can I trade using a scale up method with a stop loss to build my capital?
I want to trade 1btc up to 10 btc by February, is this insane or its possible?
There are dozens of people who play these markets and look to do just that. Not many of them are successful though.
That isn't me saying that it's impossible to trade 1 BTC to 10 BTC, I'm saying that many people who look to do this often have the most ridiculous approach.
People are generally scared of the market. And I always say, it's a good thing to 'respect' the market, but a terrible thing to be afraid of it.
These are the people who will take 1 BTC and because they are 'fearful' they break this 1 BTC up into several little pieces - and then they spread those ridiculously small amounts across several different coins. This is the most ridiculous strategy.
I mean, 1 BTC isn't a lot.... But, if you were to pull a 200% gain on 1 BTC, then all of a sudden you have 3 BTC to work with. Pull a 200% return on that, now you're dealing with 9 BTC.
This magical process is called 'compounding' - not only putting your original capital to work, but also your profits to accelerate the process of increasing your BTC holdings.
But, people who are fearful wouldn't ever dream of doing something so simple.
They will take 1 BTC and scrape off the smallest slither.. Let's say 0.08 BTC, and that's what they will use to trade.
a 200% gain on 0.08 BTC is only a piss poor 0.24 BTC. In fact, you would have to trade 0.08 BTC (and get a 200% gain) 13 times just to make 3 BTC. When you could have kept your original capital in tact, and made 3 BTC from just one trade.
This is efficiency.
Another thing these comfort seekers do is they "spread their capital" across dozens of coins. They take 1 BTC and totally diminish their earning potential by breaking that 1 BTC down into ten lots of 0.1 BTC buy orders - which they spread across 10 different coins. This is the fastest way to the poor house. It is the most illogical strategy, yet so many people do this on a daily basis.
So, to answer your question. Don't look at having "only" 1 BTC as some sort of disadvantage because that 1 BTC has massive earning power in the market - if you know what you're doing.
If you only have 1 BTC to trade with then you only have one course of action.
You should focus on accumulating 1 BTC worth of 'one' quality Coin that is trading below value, and then
sit and
wait until the price advancement of that coin gives you a profit. You cash out 50% of your position at the 40 - 50% profit mark. And, as the price continues to advance, you liquidate your remaining position incrementally on the way up - whilst monitoring sell side resistance to asses weakness / strength in the uptrend.
Doing this will net you a much larger return from just one trade, than you will ever get from 24 trades of 0.07 BTC