Let me show you how I made $779 dollars in 15 minutes yesterday trading cryptocurrencies.

Traders have a tendency to overcomplicate things with fancy charts and indicators. I won’t use any technical jargon or complicated graphs. Those charts won’t help you too much when the price drops 90%.

Bitcoin broke 6k where it’s been hovering at around for a while. It dropped to 4k. This is good. It means price movement, volatility, and cheaper Bitcoin. So, this signaled to me that I should look at what the market is doing.

Currently many coins are correlated to Bitcoin — not all, but most — meaning when Bitcoin goes up, they go up. That said, altcoins can have bigger price fluctuations relative to their price. So, I went out to find a coin that has two things.

  1. Liquidity (at least 2–3 million USD). You need trading volume, or else you won’t be able to find buyers when you want to sell your coins.
  2. That has taken a big drop in price. Buy low, sell high. Most people do the opposite.

Taking a look, there’s a lot of coins that fall into that category. I chose ETP (metaverse) because I liked how bloody the chart looked — it met my criteria above. Simple.

 

I didn’t spend any time looking into the project, the fundamentals, the community, or pretty much anything else. I don’t care about any of those things because I’m a greedy capitalist.

In fact, I’ve charted no lines on this graph. All I did was look at it and saw red (low price), volume, and the price hovering around prior support.

Next, I took $2,640 and entered a position when the price was at 88 cents, meaning I bought $2,640 worth of ETP at that price.

My profit target was 20–30%, meaning that when the price hit $1–$1.3, I would sell at that price. Why did I choose that target, and why isn’t it a specific number?

I don’t know where it’s going to go, but the price dropped 20–30% in a couple of days. I’m just looking for a quick and dirty bounce (buy low, sell high) that’s worth my time. (Otherwise Fibonacci extensions/retracements are a good way determine my profit target).

You might stop me here and say, “wait a second, I don’t have that kind of money to just blow!” Or “I can’t risk that much!”

There’s an image that you need to have a lot of money or take big risks or be a great technical analyst to make trades. Not really. You just have to be right some of the time, not even most of the time…just some of the time.

I didn’t risk my $2,640 — I only risked $150. In the scenario above, I set a stop loss at 83 cents. This means that if the price went to 83 cents, it would sell all my ETP coin automatically. That means the most I could lose would be $150.

I set a price alert on Coinwink to alert me when the price went above $1. That way, I’d know when it was time to sell. This entire process of finding a coin, buying it, and setting an alert, took me all of about 15 minutes.

The price went up from .88 to 1.19 in one day. I sold all my ETP — one click, done. That $2640 turned into $3419, netting me $779.

I haven’t traded since last April. Day trading is a losing strategy. When you set financial goals or decide when you want to trade, you get emotional when it doesn’t work out. Let the market tell you when it’s ready — approach the market when there is volatility (like now), and never risk a lot. It’s as simple as setting a stop loss.


 

Check out my latest book, Bullish on Bitcointo read exclusive interviews with professional traders and blockchain CEOs.

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