Hello everyone this is my first article here on steemit. Very useful and helpful website. So I wanted to bring something to the table and shou you how I made 15% return on my investment with alcoins in just couple of week.
A few months ago I had no idea what crypto-currencies are. Well.. I've heard the name Bitcoin before, but never read much about it until lately. So a few weeks back I spent good 2 days reading online all I can find. After a while, even though risky I still decided I have some money on the side so why not give it a shot.
Just like most other investments you need an account somewhere in order to trade. There seems to be so many places that you can open trading account that it is actually scary, if you have to research them all. So I listened to some friends that are already trading and open my accounts with https://poloniex.com and https://www.coinbase.com/.
Why I needed both? Well Coinbase to deposit USD and buy Bitcoins. From there transfer Bitcoins to Poloniex to trade... Yeah I know sounds complicated and crazy. You can actually trade sleight on Coinbase but believe me their fees are ridiculously high.
So I purchased 0.23 Bitcoins, transferred to Poloniex and started experimenting. Made some dough but it was not enough because Poloniex trading platform is very basic. I am used to stocks and forex and dealing with charts that can help me see where price is going.
So here is what I did. I opened an account with service called Coinigy. You can review the service here >>> https://www.coinigy.com/?r=b4724720
They give you 30 days free trial to use their website. It is simple yet very effective.
Their online charting is easy to use and gives you everything you need to follow simple trading strategies. So after linking my wallets from Poloniex and GDAX. (Oh yeah came to found out that Coinbase has it's own trading platform called GDAX, fees are cheaper but you only get to trade Bitcoin, ETH and LTC.)
So here is the simplest way I made 15% in a nutshell: (If you don't know what those are ask in comments and I will be happy to explain.)
50 Day moving Average - default settings
100 day moving average - default setting
Fibonacci on all Up or Down Swings
Stochastic RSI - default settings
WARNING!!! - I have never done and probably never will do Margin Trading!!!
So for me to make money I need to buy low sell high. Do not sell something you do not own... (that's margin trading)
Here is good example. The white lines on the chart are the Fib Levels, you can see the Stochastic below. And the crosses of the MAs are clear with the yellow cross.
So ideal situation is Stochastic is below 20-25, Price is above or below a Fib level and the MAs are about to cross going up.
Now I have some experience to only need 1 or 2 of those conditions to match. For me Stochastic is very important and also the Fib Levels. If Stochastic is at the bottom and we are far away from a Fib level I will go in.
You can follow the price action, when a sell of happens, your Stochastic will hit rock bottom. From there just wait for the right moment (bounce off a FIB levev for example) and buy some coins.
I place 2-3 trades a day on the GDAX platform and another 5-10 on the Poloniex. Poloniex gives you great variety of coins so you can play with a lot more trades there.
I hope all this makes sense. If you need any help, let me know. Word of advice, do not trade money you are not willing to lose.
Cheers and Good Luck.
BEL19VE