Trading Methods Change and the DRAMA that Followed

What a day, evening and night it was in cryptoworld trading!

Monday continued the weekends big +++ on the boards... And then drama started again night time in Europe and evening time Americas!

Gravity got a hold on the cryptos again!

And again the biggest exchange by far, Poloniex, crashed and was out of service for many hours; DDOS attack they stated on their Twitter feed (here and here). Yesterday I already wrote about Poloniex crash at Sunday night (CET) and wondered if we should think more then just scaling and performance issues (post here); As mentioned, I'm not a conspiracy believer, but what I do know, Poloniex service unavailability coincides in these two occasions with enormous drop in coin values across the board. What causes what, is a mystery.

But enough about Poloniex and their super bad performance.

Super Short Trading; Riding the Short Waves

Yesterday evening I decided to try a different trading method than I used since I'm an active crypto-trader (only since early April this year, so I'm pretty much a newbie as a trader). With the drama on the exchanges, the initial results are BAD. Of course I cannot conclude anything since it is just too short a time to analyse the different trading techniques I used.

In short, the trading technique I started with is based on super short trades, riding the small waves uphill, buy a coin and sell within minutes, taking small percentage profits, even if this is 1% or less. When the coin would go down after purchase, I would buy more (1 or 2 times) of the same to allow for a lower break-even value. This method cost enormous amount of time; hours and hours behind the screen looking for the best time to make trades with as low as risk as possible. So far I did well I think, it did bring me profits, overall maybe more than 70% (I only traded maybe 10 days since early April). Now you can say, with the crypto values going up with more than hundreds of percent in the last weeks/months, 70% is nothing. But I think the super short term trading is less risky, while you do not have to follow the crypto news since knowledge about a coin is not really required; It is all about the short waves, the larger they are the better to trade them. This technique can even be used on bad coins, it doesn't really matter.

New Trading technique adopted Yesterday

Yesterday evening I decide to test a different method. Basically take position in some quality coins and leave the investments for what it is, regardless of the ongoing short waves and pump/dumps. Qualified coins are those that for some reason have a good story, good market perception and some reality in terms of services and business. My chooses where:

Bitshares (BTS): they simply have great technology behind their coin
NEM/XEM: there technology is used in private commercial solutions and deployed in the field in Japan
Steem: what can I say :)

The results after a little more than 12 hours in one word: DRAMA!

This morning immediately after I woke up, my portfolio was down with 50%. Now hours later, the coins are doing somewhat better, but still something like 35% down.

But I guess, I should not look at such short term; This method is more for mid to long term investments. So I try to keep my cool, keep my fingers away from the trading buttons and plan to take this week to see how this will play out. I'll probably include the weekend as well, since weekends seem to be always good for value increase of coins. No idea why, but maybe because the weekend traders include more smaller traders and lesser big traders.