I love trading and it is one of the coolest things to do. I do not have much patience, and I am the kind of guy who wants to get rich at once. But, among the lessons I have learned is the one that you need to be a long-term trader, and that you shouldn't be in a hurry to get rich with trading.
What do I mean with this? A few months ago, I wrote an article about making a plan and sticking to your plan when it comes to trading. That is very much the essence of this as well. Do you know why?
My ADA order just went through!
I remember that I bought some Cardano maybe a year ago. I then created a sell order and left it there. But, it never reached my sell-order, so a few months ago, I modified my sell-order and divided it into two orders (both giving me a profit). 50% remained at the initial sell-order level, while the other was moved down to a lower level. Guess what, the sell-order went through a few days ago.
Now I have already added a new buy order at half the price (compared to what it is today). If it ever goes through, then I will quickly add a new sell order at the level which I sold a few days ago.
But, here I am speaking about levels 100% up and 100% down. That doesn't happen in a day (normally). But, with patience, and a couple of trades per year (hopefully), this can actually bring a nice profit.
I hate this kind of math examples, but still.
January 2020: Buy ADA worth 10 Euro
June 2020: Sell Ada worth 20 Euro (gone up 100%)
December 2020: Everyone sells crypto to buy Christmas presents, buy 20 Euro worth of Ada at original price.
April 2021: Sell Ada worth 40 Euro
October 2021: Buy Ada with 40 Euro.
December 2021: Everyone is buying crypto for Christmas, your Ada is now worth 80 Euro.
Now, this is a stupid example, but it portrays my new trading life quite clearly. I am not in a hurry to get rich. There is a risk to this, if the market collapses, I will be stuck with ADA not worth much, but at the same time... it all started with 10 Euro (or whatever amount you sacrifice to the cryptocurrency markets in the start).
Once again, only trade funds you can loose without going bankrupt.
I have been using the same strategy for Ethereum trading for a while, and I have seen the 100% up and down a couple of times already. If you would start with 100 Euro and you see a couple of rides up and down (like we actually have with Ethereum in the last year), the math calculation might actually end up looking quite nice in the end.
You might want to divide your orders to several levels. This will help you enjoy the rides up and the rides down in better ways. What do I mean?
If you start with 100 Euro...
Set Ethereum buy levels like this:
- Buy order at 100 Euro per Ethereum (25 Euro)
- Buy order at 125 Euro per Ethereum (50 Euro)
- Buy order at 150 Euro per Ethereum (25 Euro)
When you get the buy orders through (or at least one of them), set the sell orders quickly:
- Sell order at 200 Euro per Ethereum (50%)
- Sell order at 225 Euro per Ethereum (25%)
- Sell order at 180 Euro per Ethereum (25%)
These are just some sort of examples. But, this will make you more relaxed. You don't have to pay attention to the charts and follow the exchanges every day. But, you follow the big picture, and when something happens, then you move. This might cause you to move only a few times per year, but in the long-term, you will most likely make more money in this way than trying the short-term trading strategy to get rich quickly!
These are just some thoughts from me, a person who is trading for fun and who has been doing so for some years. I wish I knew and followed these principles that I write down here when I started back then...
If you have any thoughts, principles, or comments on the content I have written here, please write it down. I would love to hear from you!
Do you want to learn more about different cryptocurrency exchanges? Check the following article for advice and recommendations: https://www.thevpnboss.com/which-are-the-best-cryptocurrency-exchanges/