I don't normally "trade" in Crypto currencies. My strategy has been, and continues to be, find a good coin to buy and hold. Studies have shown over and over that is the best way to make money when purchasing equities.
But, I've decided to take some part of my portfolio, somewhere around 10%, and to take a risk with that part. I'm looking for coins that have had a lot of volatility lately and which appear to be ready to break out.
With that in mind I've focused on 3 coins this past weekend. On Friday I bought a million coins each of Sia (SC) and Burst (BURST). I have no attachment to Si, I'm only buying it because it is one of those coins I always seem to see with double digit gains on any one day. Burst on the other hand is a coin I know fairly well and in fact I mine Burst on a daily basis.
So I bought a million Sia at 0.00000425 and a million Burst at 0.00000560. I'm hoping they both break out around the 0.00000725-0.00000750 range. If they do, what I do next will depend on the strength of the breakout. If they barely break to new levels, then I'll sell them. If they break and run, I'll put in a sell-stop order at that level and let them run for a while. With the stop order in place I'll be able to lock in my gains should they retrace.
A third coin that looks good to me is LTC. I've watch LTC for over a year now. It is a very mature coin, but it looks like it is building a base at the 0.01109 area. It is either going to break out or break down. I'm betting on the break-out, with a tight stop on the down side.
We'll see how it plays out. As of this morning both Sia and Burst are looking good, but I've seen them give back their gains in a matter of minutes. Both of them are currently in the high "600's" whereas I'm looking for "725-750". LTC hasn't moved, but LTC might take several days or even several weeks to do so.
But, I've decided to take some part of my portfolio, somewhere around 10%, and to take a risk with that part. I'm looking for coins that have had a lot of volatility lately and which appear to be ready to break out.
With that in mind I've focused on 3 coins this past weekend. On Friday I bought a million coins each of Sia (SC) and Burst (BURST). I have no attachment to Si, I'm only buying it because it is one of those coins I always seem to see with double digit gains on any one day. Burst on the other hand is a coin I know fairly well and in fact I mine Burst on a daily basis.
A third coin that looks good to me is LTC. I've watch LTC for over a year now. It is a very mature coin, but it looks like it is building a base at the 0.01109 area. It is either going to break out or break down. I'm betting on the break-out, with a tight stop on the down side.
We'll see how it plays out. As of this morning both Sia and Burst are looking good, but I've seen them give back their gains in a matter of minutes. Both of them are currently in the high "600's" whereas I'm looking for "725-750". LTC hasn't moved, but LTC might take several days or even several weeks to do so.
Can you say more about the coins breaking to new levels? Do you use a particular set of analytics to interpret and project performance? What tells you the coin is "at a new level?" Thanks, Steve.
ReplyDeleteWhen you assess coins and the firms that issue them, how much weight do you give to their underlying business model? What factors do you look at?
ReplyDeleteSorry for the delay in answering these questions, it didn't alert me to the comments so I didn't see them until now.
ReplyDeleteUnlike Stocks, Bonds, or Commodities, my coins positions are based almost entirely on technical analysis of the charts and looking for trends in where the markets are heading. I do base my core decisions on the merits of each coin, but I base my trading decisions on what technical indicators I see.