With the bull run now upon us in the cryptocurrency landscape, I decided to dust off my trading portfolio and put it back into action after a hibernation during the last two years of bear market.
Having practiced for over 5 years and taught myself the basics of trading, which includes technical analysis, candlestick pattern reading, and general chart and fundamental analysis, I have really had fun, despite the ups and downs, pun intended.
Now with the bull run up on us, I feel the urge once again stirring to attempt - against all odds - what may have once seemed impossible, but now seems within reach.
Every year, with every trade, newer and deeper experiences are gained and more insight is learned, thanks to spending time in the market.
The qualities of a sniper
This is the place for a sniper
The sniper is one who spends a lot of time doing nothing.
In fact much of the skill lies in your ability to spend long periods of time doing nothing.
That is, nothing more than merely observing the target with keen interest and wrapped attention, for unending periods of time, without distraction of any sort. By cultivating this skill of the sniper and watching price action, I am able to time my entries and exits and thus make small profits on a daily basis.
Strategy
That's if all goes well of course, which it sometimes does, though are the occasional dumps, which accepts as mearly learning experiences. I have learnt to trade somewhat defensively, not by using stop-loss, but by decreasing the size of my entry amount.
I divide my trading stack into four quarters and deploy one at a time, in a grid-like strategy. If price dips a few percent - no more than what seems proportionate - I then allocate a further quarter, thus buying the dip, so to speak.
In this way I'm able to mitigate my instinctive propensity to be fearful of loss. And in this way my system includes the process called "dollar cost averaging".
Technical analysis indicators
The main indicators that I use are are RSI and moving averages. I also observe candlestick patterns to a minor degree. Sometimes I also look at the Bollinger bands as well as of MacD.
At this stage I have allocated funds to two separate exchanges where I look for trading opportunities, based on pattern recognition showing potential entry points. When the RSI reaches the bottom of its cycle, or the oversold condition, I then try to time my entry point in such a way that I capitalise on the uptrend to follow. Like A sniper one only needs to know the art of sitting patiently, doing nothing other than observing, but one also needs to have good timing.
Timing counts for an exceptionally large amount in the general equation of trading. This is especially true when one is making short timeframe trades, or day trading for a few centage points at a time.
Trade from mobile phone on the beach!
Modern technology has allowed the amateur retail trader like myself to perform all the necessary operations simply by having a decent smartphone in the palm of one's hand. From my mobile device I'm able to go on to the exchanges, place my trades entries and exits, as well as carefully study charts on a website like tradingview.com, for example.
All cryptocurrency price action is available for our viewing pleasure twenty-four hours a day all year long. That is what makes it so attractive and potentially addictive. Like a gamer, I'm inspired by my wins and my resolve is strengthened by my losses. The losses encourage me to do better and to learn from my mistakes, and so in this way the real process of apparent self-improvement is going on, even if the actual profit margin is relatively minimal for the moment.
The point at this stage is more to learn technique than to actually try to bag large profits from each trade. After two years of not doing much trading, I prefer to re-enter the market as an observer, and then make small trades, while strengthening my patience and determination.
Trading is a psychological game
After all, trading is largely psychologically driven. If I can cultivate the right observational skills and be situated with my finger on the pulse, so to speak, as well as improve my actual technique, then I may be able to acquire improved skills and thus ensure more wins than losses.
Once my technique is reliable enough, I can then add to my trading stack, knowing that I can feel confident with the increased risk that I'm taking based on the larger investment on each trade.
Bull run returns
This past month was massively bullish and prices broke to the upside with such ferocity that it appeared as if rockets have been launched to the moon. As a result it was like throwing a dart at a board and one could almost with a blindfold pick a winning coin which was sure to bring you some profits during this month's hyper bullish uptrend.
Some coins increased their value almost double, gaining around 100% in value in just this month alone. Even if one was able to catch a few little nibbles on that massive set of candles to the upside, still one would bag some decent profits, from a percentage point of view.
Up 50% this month
For example, in my initial primary trading stack on one exchange this month I was able to achieve roughly 50% profit. And at the other exchange I've only just today started working on my trading portfolio. This happens to be on the Binance exchange, where I noticed that the famous cryptocurrency Luna classic was launched once again, after having crashed into some form of ill repute just a year or two ago.
Terra Luna Classic and USTC
Along with that, their de-pegged algorithmic stable coin USTC has also been added to the Binance exchange once more. The Terra Luna team has continued to work on the project behind the scenes, since the collapse many months ago. They have now - in the form of the Luna classic coin LUNC, which is a hard fork of the original - been able to use that excellent technology, which has great potential.
Also, the stablecoin can be used and returned to its rightful value equal to $1. With the stablecoin now at only 6 US cents, it seems like the potential upside, all the way to $1 value, is quite significant.
Already both of these Terra Luna coins have pumped massively over the past 24 hours as FOMO drives market participation in the revived coins. The dumps have been just as big though. So no profit there chasing the pump and dump.
Long term VS short term
Whether you buy now and hold for the long-term or weather you try to scalp a few percentage points on a day-to-day basis, either way there is potential opportunity for the sniper and trader who may wish to make some profts now on these hot and trending tokens, during these initial stages of the bull run. As well as for the rest of the next two years, give or take a few months. After all, the bull market is set to really only take off after the Bitcoin halving, which is in April 2024 in a few months time.
Thereafter the bull run really only accelerates in 2025, and in that year we will really see the glass ceiling being shattered as new all-time highs are reached, and the biggest bull run in history is manifest.
So it pays to sharpen the skills now and to have some strategies in place so that one can capitalise for the next two years and ride the wave of bull market sentiment and trade it all the way to the moon.
With that I wish you successful trading and I'll see you on the other side of the moon. As things progress in the coming weeks and months I will continue making reports in these day trading diaries, just to have a valid record time-stamped on the blockchain, so that there is a degree of evidence from which I myself and others can learn, as we travel along this wonderful path has traders and investors pioneering uncharted territory.
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