I really want to broaden my horizons a bit and start day-trading more often. Now, I really don't want to spend any of my fiat currency on this, so I've decided to start powering down all my SP.
Wait, I know what you're thinking... If I'm powering down all my SP, does that mean that I've completely lost my faith in Steem? Not at all!
Actually, I will have even more SP to vote with than I currently have. Besides using the Steem I get from powering down for day-trading, I also plan to keep around 3000 Steem aside to lease more SP. I'm looking to get around 100k SP minimum, to greatly increase my upvote. I'm not an idiot, I'm fully aware that I will likely never make a profit from upvoting other people.
If I make back 80% of what I spend on leases, I'll be very happy! This does mean that I'll have an upvote of around $1.00 and I'll be able to make a lot of people very happy with that.
Reflections on Auto-Voting
Following my post from yesterday, I think it's time that I start cutting down on the auto votes a bit. By a bit, I actually mean a lot :P
Currently, I can only think of around 5 - 10 people who I'll keep on my Steemauto's fanbase, these are people who I've been following since the beginning and have never disappointed me with their content. I trust them 120% to keep producing great content!
Not going to name anyone here, but I reckon they probably know who I'm referring to.
Day-Trading? What?!
Sounds like very risky business, I'm well aware of that! I've just been reading a lot of guides on how to day-trade and I feel that I could put my investment into Steem to better use.
Seems like the general consensus here is that you shouldn't actually use your SP, to further your own holdings here, except my curating and perhaps leasing SP. Well, curating can be done using leased SP and the return on actually holding SP yourself isn't too great IMO, especially at these low Steem prices.
Then I'd rather actively trade a bit, using my freshly acquired day-trading knowledge. I'm fully expecting to get burned a couple of times, but I do hope that I'll manage to get some profit over time. Perhaps it's the single most stupid idea you've ever heard, but I don't care. Anything I've invested in Steem, I've gotten via my various Bitcoin earnings without that much trouble, so losing it all doesn't really hurt me financially.
Steem Philanthropy
The biggest change for me, is going to be the way I view the Steem platform. I'm actually quite looking forward to seeing it more as a platform for philanthropy, rather than an investment.
I'll start rewarding the authors that really deserve it, no matter how much SP they have themselves. I already did that to an extent, but the thought of ROI was still always at the back of my mind, if I'm being honest.
How great would it be to just start curating freely and boost someone's post with a somewhat significant amount, while they're not expecting it? That's the sort of stuff I'd find very rewarding on a mental level. By getting my SP through leases, I'll have complete freedom to do that, without having to worry that I have to keep my own Steem locked down for X amount of months.
Heck, last week I gave away hundreds of Steem to random people and it honestly felt great to do that. It didn't leave me with a financial hangover and a lot of people were made very happy! I want to do that on a daily basis!
Conclusion
While I'm quite excited to start this new, risky endeavour, I do know that everything can go horribly wrong in an instant. It does feel strange to suddenly start powering down almost all my Steem Power and I realize that people might take offence against my new strategy.
Once I don't have any native SP left, it would seem that I'm not invested in Steem any more, while that isn't exactly the case. I will still invest my time into Steem and other Steemians will arguably be getting even more benefitq from me, due to my increase in usable (leased) SP.
In the end, I think it will be a fun experiment that will probably cost a lot, but I don't care! I'm looking forward to finally have the voting power of a real whale ;-).
Oeeeee exciting dude!! Good luck with the nerve wrecks ;)
But seriusly, i feel you are making well thought decisions and not letting the fomo or emotions get too much in the way. Its scary to do this though, but hey..you wont know until you have tried right ;)
I’ve been trading for a couple years now...generally take my profits off the exchange and power up Steem.
One thing I’ve found helpful is for the first couple weeks just do “paper trades.” Write down what trade you would do (how many at what price)...both entry and exit. Then just watch and see if you would have gotten the trades through.
Sure, if the trades are successful, you won’t make any real money cause you didn’t actually place them, but you also won’t lose by making a noob mistakes.
I found that it helped to build my confidence as well, and I learned some lessons without any risk.
So far, in two years I’ve only lost on two (out of hundreds) trades, but they were big and hurt bad. I think one of the toughest lessons to learn is when to take a loss and move on instead of watching it get worse.
Also, don’t panic about every move the market makes against you...you’ll drive yourself nuts.
Best of skill to you (luck has little to do with it)!
That's definitely some good advice, I'm currently already going down the paper-trades route, through demo-accounts on various exchanges. Following the theory which I've learned, I've only made a couple of mistakes in the beginning, but rectified them pretty quickly.
Another little trick...when you see a huge green candle, wait...they generally come in threes. If you sell on the first one you’ll often get burned out.
It’s never the goal to pick the top or the bottom, so don’t regret missing out on “money you could have earned.” As long as you make some profit, you’re good.
Just be careful, small amounts to start. I don't think I have the nerve to do it. TSE is a good place to trade though, zero fees and nothing to lose at all.
Good tip, the couple of guides I've read also mentioned starting there. I'm definitely not planning to spend everything in one go :P
More like 200 - 300 euros at a time. I'm currently in profit at my demo-account, which doesn't really mean anything, but it makes me think it's time to start trading for real :)
Most of the tribes are volatile as hell, DEC has the most volume today. I'm sure you know what DEC is used for!
Fair point. I've always wanted to do day trading but I generally don't have the balls for it.
Good luck man and good luck with leasing more sp
Good luck with trading! It’s a very very hard thing to master. 90% fails at this but I hope you’ll get some profit out of it!
One suggestion is before you day trade, if it's your first time, sim trade with you strategy, place a 100 trades and see how you do. If you have a positive equity curve, then that will give you permission to day trade with real money. While you are sim trading, continue to collect steem via curating. Once you are ready to go live then power down.
I think your plan is well thought about. You know the ups and downs well. I just hope you find enough time for manual curation because finding real good content to upvote can be time consuming.
Meanwhile do you play Steem Monsters, you should try it if you like games even a bit.
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Someone seriously downvoted you for this post? They obviously didn't read the whole thing. Good luck to you! I am excited for you to take this next step! Are you going to day trade on steem-engine or on the other non Steem markets?
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I like your out of the box thinking! I day trade stocks. Have for a long time. I have to say I never rreally get hurt on day trading. It is the buy and hold ones that can sink you over time lol.
Hi Daan.
I don't particularly think it's a bad idea and honestly I think that some people's attitudes on steem about powering down is a little sanctimonious at times.
I thought about it for a while but because I'm a content maker first and foremost it woudn't make sense for me. I've noticed people who power down who are mainly creating content tend to loose a lot of support. I've recently branched out into hosting masternodes for a POS coin for some passive income and I wouldn't mind throwing some more into that if I'm honest but I don't want to jeopardize what I've built on steem so I'm not gonna power down any. I cut my losses on the various alt bags to find that project and it seems to have worked out so far.
Day trading is too scary for me but I do trade swings on a monthly basis with BTC stack. Done ok so far. Good luck with the day trading.
P.s. the leasing idea sounds awesome and with 50/50 I think it might be possible to make some money or at least break even.
Thanks man :)