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.
- 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.
- 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 () 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
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.
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