During the past few days I have been trading various coins. It is a steep learning curve, but we all have to go through it if we want to trade.
I am lucky enough to have enough to have some friends who are pointing me in the right direction every so often, but it is still each to his own in the crypto currency industry.
You can only lose money when you actually sell lower.
I am sure that most of you that read the statement above would think that is an obvious statement. Sure it is, but let me put it into context. In order to be a day trader, you should have coins to trade. There is a lot of strategies that can be followed, but none of them can ever guarantee the outcome of the coin. You do limit your risk to some extent using these strategies, but crypto trading is still about supply and demand. The coin can go up and down at a fairly quick pace, and if you buy to many coins at a specific price, and the coin go down from there, you only have two options.
Option 1: Take the loss
You can always sell the coin at a lower price and make up your loss by making profit on other coins.
Option2 Hold on to the coin till it comes back to the level where you bought.
I have been lucky enough that all the coins I bought came back to the levels I bought at within a few days, but each day you have a little less to trade with, as the capital for the coins you are holding are out of circulation until you sell them.
The biggest lesson I have learnt is not to put all of your money into coins at the same time. Always have enough left to be able to trade tomorrow.
Do not rush into any coin before you understand the movement levels to a certain extend. Sure you will not be able to predict it to the nth degree, but you become use to the movement level of any coin within a short period of time.
Hope this helps somebody out there!
