I was just tweeting with a twitter friend about current market conditions. Over the last month or so I've been in accumulation mode and building bags very slowly. At this point I'm really happy I took this route. My most recent strategy over the last couple weeks has been swing trading. Looking at charts, analyzing, searching for potential bottoms and breakouts and taking small 10% to 20% gains. This was how I survived the bear market of 2014, and this is how I plan to survive current market conditions. Markets constantly change & as traders we have to constantly change our strategies to those conditions.
We often joke around and say each new group of crypto traders are baptized with the blood of the noobs. For whatever reason, most of us buy in at the peak of all the media hype when we're nearing the top. I did, I know friends who have recently, it's just what happens when you enter a market full of FOMO and ready to join the growing ranks of crypto traders. You don't care about the chart! You've discovered this exciting new crypto economy and you want in! I've done it, I know others who have done it, and a new group of noobs will enter in the future at the top, with the media egging them on! LOL It seems to be the circle of life for crypto traders.
Although the above chart looks pretty bad. It wasn't as bad as it looked. I was only buying small $10.00 USD bi-weekly amounts of bitcoin, and as the price fell throughout the year I discovered the altcoin markets. I was swing trading alts with my bitcoin & by the end of the year or September I had acquired enough BTC to buy a new snowblower and not a very expensive one at that! Did I lose money? Not really, pretty much broke even, but when you take into account the gains I would of reaped by hodling, the losses were actually substantial.
Anyway, I was just feeling a little nostalgic. If you bought the top, don't feel bad. We've all been there at one time or another. And if you've sold the bottom, that sucks but most of us have done that once or twice ourselves. A lot of us just won't admit it! LOL.
Remember markets constantly change and as traders we need to learn to adopt to market conditions. It's easy to make money during a bull run, but when you turn a profit during a bear market, you're definitely doing it right! Happy trading everyone :)