Gday guys, this is the second part of my introduction to crypto trading, if you haven't read the first part i'd highly suggest you go and read it, you can find it here https://steemit.com/cryptocurrency/@cryptokrieg/an-introduction-to-crypto-trading-or-how-i-learned-to-stop-worrying-and-love-the-profits.
When we left off i was going to explain the benefits of micro trading or Min/Maxing aswell as some tips when to buy and sell and how to manage your accounts, as well as things to watch out for, so lets jump straight into it.
Managing your account
Managing your crypto account is relatively straight forward, the most important thing you want to do after buying coins is set your margins and tracking your profits/losses.
There are numerous apps out there that keep track of this, but i personally prefer to be mindful of my coins and tracking my products and manually input my data into either wordpad or if you can be bothered, excel spreadsheets.
Now depending on your level of money invested you will want to ideally hit a mark of 20% profit before you decide to move your money around, remember most exchanges have fees for re-trading coins so you will need to take that into account for your profit margins.
The Optimal amount of profit to be re-trading coins and collecting profits is roughly 45-65% that allows you enough capital to reinvest into the coin of your choosing, while not depleting your main profit coin, remember selling high is always great but you don't want to take too much money out and risk missing out on more profit from upswings, when it comes to trading in cryptos, quantity over quality is essential.
Losing Profits and what to do
Inevitably you will come to a point where you lose money, it's just a fact of trading, no one is lucky 100% of the time and no one makes the best moves everyday, so eventually you will run into the problem of holding a coin that is down in price and you may even be losing your original investment money.
Numerous times these are small drops depending on the market, but sometimes these are retracements.
Retracements
When a coin has received a massive influx of money in a very short time, people will often pull their money out when the market shows signs of instability causing it to revert back to it's original price people bought into it.
E.g. Ripple grew by nearly 65 cents AUD within a month, the next month however it reverted back to its original monetary value and now sits at roughly 34 cents.
Now how do you identify when a coin is retracing or if there are simply people selling their coins in large quantities.
The best way to determine this is to watch the live markets, if you see a coin is dropping by 0.5% every hour or so these are usually just down periods or lulls, however if you see a coin dropping by 0.5% every few minutes, these are usually retracements or a whale leaving the market.
It isn't an exact science, at least to me, but those are usually the best warning signs.
Panic Selling
Don't. Do. It.
A lot of times iv'e seen people panic at a market drop and sell off all their coins in a vain attempt to recoup some of their losses, the vast majority of the time, holding a coin through a crash and even reinvesting when it's low yields extremely positive results as opposed to dumping your money into another coin.
For example, most recently(15th of June 2017) there was a small market crash and everything went down, i had roughly 12 ETC(ethereum classic) that had dropped from 28$ a coin down to 23$ a coin, and had lost roughly $60 dollars, however during the down period i reinvested and bought 5 more ETC, as of today(18th of June) they are now trading at close to $31 dollars a coin, so not only have i made profit on my original investment, my new investment has yielded even more money then my original investment.
Panicking when your money is at stake is never a smart move, sure you may lose some money today, but you never know what you may gain tomorrow or the next day, keep this in mind when you're deciding either to sell or hold a coin, you never know what type of money you may be throwing away.
Micro-trading or Min/Maxing
Min maxing comes from early role playing games, where you want to maximize something while minimizing something else, making your character exceedingly powerful in one regard, and weak in the other.
This same principal applies to micro trading, if you have a lot of time on your hands, and can watch the markets for extended periods this can be a very lucrative business model for you, however as the explanation above states it can make you weak in the long run to certain things.
Having some gambling money handy can yield results if the market winds blow your way, investing in things that are currently climbing can be a great way to net a few a dollars to a few hundred dollars depending on what money you've set forth for yourself, it can however be a great way to lose the money you're gambling with.
For this type of trading i would recommend only bittrex as their market places can be viewed live, and have minute by minute visual representations of how the coin you're investing in is doing.
Now the most important thing for this type of trading is to set a selling point for both ends, negative and positive, i made this mistake a while ago of greed and my 100$ profit, turned into about 25$ profit because i was holding out for more money, thankfully bittrex can be set to sell at certain prices, so before you do this i strongly urge you to set a selling point for your profit or you may end up holding onto a coin for too long in the pursuit of more money and not make enough to even cover the transactions cost.
Hopefully in these 2 guides i have successfully outlined how to get started in crypto trading and how to keep your head above water in terms of profits and how to minimize losses.
I will be adding more tips and info on trading in the coming days and weeks so if you have enjoyed this guide and would like to help me create more of them, feel free to upvote, resteem and follow me.
If you have any questions, comments or feedback, negative or positive, please feel free to add them below.
Thanks for reading this 2 part guide, for more info on crypto trading and other things check out my steemit page at https://steemit.com/@cryptokrieg
Thanks guys.
~Crypto Krieg.