The best trading strategy? Don't do anything

in LeoFinance4 years ago

In such an unstable market, any decision to sell or buy can be counterproductive, especially if moved by the intention of increasing our assets. For example, to increase my amount of LEO, I sell my coins when the price is high and I buy them when the price falls. It seems easy but the market almost never reflects our projection, indeed it often seems to move in the opposite direction: when we sell the price goes up and when we buy the price goes down. Who has never happened to? It is difficult to predict the market trend if we are not large whales able to manipulate it.

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The best strategy, it seems absurd, is to do absolutely nothing, set yourself a goal and move only when it is achieved. Bitcoin example: those who bought Bitcoin in 2017 at 15k or 20k and did it only for trading, if they are not a professional, they have certainly sold at a lower price, for fear of losing all the invested capital, having no goal to long term. A mistake that cost him dearly and that he would have avoided if only he had believed more in his investment, given that today BTC is close to 60k dollars.

So I am not at all impressed to have bought CUB at $ 3 and today to see it slide to $ 2, I will never sell my coins for fear of losing my capital, even if the short-term decline continues. It is enough to read the latest announcement by @leofinance to understand the quality of the long-term project, the continuous development and new features, the seriousness of the team and the compactness of the community. These are the winning factors of any project! Buying Bitcoin at 60k is easy, the difficult thing was to buy it at $ 100, few have done it and today they have benefited greatly.

The bad name of the crypto world is that of making easy money, many really believe in it, even I was among those a few years ago, but then I understood and studied a little, and I didn't run away, I stayed to learn and I understood better how to invest and on what. Nobody here has the magic sphere but there are only possibilities and choices to be made. I believe that the choice to do nothing, after having invested in a carefully chosen project, no shitcoin, is the best thing that a user who is not an expert in trading but with clear ideas can do.

I hope that my advice can be impressed on all new subscribers or new users who are entering the world of cryptocurrencies for the first time. Do not invest anything at the beginning, study the fundamentals of the blockchain well, what it is and why everyone would like to invest: if the answer is only money, then get out as soon as possible because you will lose your savings. When my friends ask me what they should invest in, I tell them before reading the Bitcoin White Paper, it is the cryptocurrency bible and explains why Nastoshi Sakamoto one day decided to create and mine Bitcoin, the thirst for money in 2009 it was certainly not his priority

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Couldn't agree more! In the last few weeks, every move on buying or selling has backfired. What I sold gone up manyfold and what I bought has gone down. I sold 8000 Doge and Bitcoin cash when I should have bought more and bought a token that I should have dumped. Now I am just watching the coin market but doing nothing. I know Doge will touch $2 by the end of June, but not ready to invest even a small amount.

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In a time of uncertainty HODLing can be the best possible move that you never have to make.

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Simple buy highly effective. Imagine buying LEO at $0.03 and seeing where it is today. Now imagine buying LEO today and holding it for 2 years and seeing it at $5+ Buying and holding as well as dollar cost averaging is one of the most effective ways to build wealth.

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i prefer dollar cost averaging. but sometimes emotion takes over.

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Oh I totally get that it's really hard to keep your emotions in check. I sold a bit of Ethereum early thinking it was going to nose dive last week instead it rallies lol still profits though.

So true. Sometimes doing nothing is the best trading strategy. If you feel the impulse to do trading, and take your entry, you might lose money. You need to wait for your setup, when it comes, you can take your entry, there is a high chance you can profit from that trade.

You're not doing anything, that means you save your capital. If you lose your capital doing trading that you should not do, you will not have the fund when the time is right to take the trade.

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As someone once said, you don't lose it f you don't sell. This strategy of yours is actually the best (investing with the future in view)

They're actually many examples in the crypto space to back that up


Posted via proofofbrain.io

This is a nice strategy.
I have some BTC that i bought last year and i did not trade it and it's just sitting in my wallet and the value is increasing.
There is just one thing though, i you have invested FIAT to buy any crypto, i advice to pull out the initial investment as soon as it surpasses your goals, and you can leave the rest in market, now it doe snot matter how much this increases or decreases and it wont impact you.
!LUV 5


Posted via proofofbrain.io

When you sell, the loss is real. I don't like to FOMO in, but if prices are increasing, I DCA my way into it at price X. If it falls, I buy more at a reduced price. And if prices increases, then great as well!

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Buy and HODL long term and you will ride the bull to the moon.

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I have been playing with Bollinger Bands recently, and they seem to be doing okay for me. If the market slowly drops then it doesn't do much, but if there is a drop outside of the norm then it buys the crypto as I am hoping for a (positive) market correction.

My bot again sells for a 3% profit - but you can play with higher/lower figures.

Out of three bots (running on ALGO, ATOM, and HARD) over the last week I have made 20% ; 11%, and -10% returns. Overall a gain. Yes, it didn't work on HARD and I'm waiting for the price to still slowly rise. But I don't mind hodl'ing either as at some point I am sure that it will rise again above my buying price (and I just have to be patient). And overall it is a net profit.

Saying that, please do not jump in until you have done your research (as @claudio83 mentions above) and HODL until you are ready. I am only experimenting with 20 USDT per "bot" so I can afford to loose it all. Until I am sure that long term it is a good idea, I am only investing what I can afford to loose.

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Sorry, you're out of LUV tokens to be sent today. Try tomorrow. (Having at least 10 LUV in your wallet allows you to freely give 3 per day.)

So if you don't invest in crypto for the money, why do you do it?

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I'm a strong believer that HODLing is arguably the best move you will never have to make.

Just sit thight HODL those coins and watch em grow, a bit like planting a seed.

You might need to take some fruit from the bush from time to time.

But given time it will continue to grow and give you larger offerings.

Each time you take a little fruit, simply plant more seeds, before long you will have that orchard you always dreamed of

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holding isn't a trading strategy, it's just holding or investing. When it comes to trading crypto, you can aim to accumulate fiat or aim to accumulate more coins, the second strategy is where you can beat just holding because if done right at the end of the day i will have more coins than those who do not trade.

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