I thought I would briefly share my current portfolio, predictions, and my trading strategy with you all!Everything is in Austrian dollars btw
, and comparing the price action of the coin directly to technology companies (as I believe the two markets are similar). Obviously a year is a very long time, a lot can happen which I can not predict for and so I may be wrong about my predictions.
What is my trading strategy?
My strategy for trading cryptocurrency is identical to how I trade other markets. I find a coin with a good product (take funfair for example) and I buy some and hold. When I see the price of the coin dip, then I buy some more. In addition to this, I will consistently put a percentage of my income into the coin that I am investing in.
So what happens if the coin is just a dud and collapses?
In this case, then I will lose my money invested into the coin, importantly I will not sell at a loss, I would rather lose all of my money than sell at loss. Why? This is because when I invest in anything be it apple, tesla, or crypto. I take a risk, that risk is that I need about 1 in five of my investments to pay of a decent amount and the rest do not matter. To safe guard myself from being affected by significant losses I have a diverse portfolio with my money spread across multiple sectors.
With all this said, I do not just throw my money into anything, I am careful about where I put my money and so far have made significant returns from the majority of my investments in the past.
So when do I sell if I have a seemingly "no sell strategy"
very rarely do I sell all of my position at once, rather I scale out of my positions as they reach what I would consider a peak which will typically lead to a pullback. Typically, I will frequently analyse the price of a share/coin and when it is reaching my predictions then I will begin to scale out. The percentage I take out per high, will depend entirely on the expected volatility of the share/coin.
A example of this was with bitcoin. I purchased bitcoin at the beginning of the year at around $900. When the price reached around $10,000 (AUD) a couple of weeks ago, I decided to begin to sell around 10% of my position at every high. Admittedly, I most likely did sell my position off a little too early, as I am expecting bitcoin to appreciate in value especially if there is another fork. However, I have made a significant amount of money from bitcoin, and so can't complain.
What are your price predictions/ what is you trading strategy? Please feel free to discuss in the comments?
Do you agree/disagree with my predictions?
Would you like to see my posts on investing?
Feel free to donate to my litecoin address: LdwP5i96zgVSkMzZrFcxDgXdMRnhQSkJ7i