How Much Profit You Would Have Maid If You Had Used Psychological Analysis?
I have explained how to use psychological analysis to outplay the market.. One of the strategies I suggested was that you should buy when everyone is panicking and desperate.
Source: Telegram Stickers :)
I have applied that in another post where I suggested 12 Coins I would Buy in This Bear Market. It is time to go back and check how well did our strategy work so far. So, let's check the results of those 12 coins until now. Please notice that I have suggested a buy range for each coin. So, I will assume that I have bought at approximately the middle of the range. I will also assume that I have bought a $1,000 worth of each coin.
The Results
I have summarized the results into the following table:
| Project,Name | Buying Price $ | Current Price | Profit Made $ | Profit % |
|---|---|---|---|---|
| Bitshares | 0.18 | 0.28 | 556 | 55.6% |
| Wax | 0.23 | 0.47 | 1043 | 104% |
| Steem | 3.25 | 4.60 | 415 | 41.5% |
| VeChain | 3.35 | 5.77 | 722 | 72% |
| IOTA | 1.25 | 2.1 | 680 | 68% |
| NEO | 75 | 136 | 813 | 81.3% |
| Waves | 4 | 7.68 | 920 | 92% |
| Kucoin | 4 | 5.94 | 485 | 48.5% |
| EOS | 6 | 9.94 | 657 | 66% |
| PIVX | 4.5 | 6.81 | 513 | 51.3% |
| BAT | 0.25 | 0.432 | 728 | 73% |
| OmiseGo | 8.5 | 18.59 | 1187 | 118.7% |
This is a snapshot of the excel sheet:
What is the Total Profit?
Based on this calculation, if I had invested $12,000, then I would have made a total profit of $8,720. That is a 87% profit in less than 10 days. Not bad, huh.
Source: Telegram Stickers :)
Would I Sell Now?
No. I am not a short-term trader. Moreover, I am following my Psychological Analysis strategy. Based on that, I shall wait until everyone feel so excited and think that the moon is within their grasp. Yes, the moon is my signal! Then, I would start selling.
So, Why Did You Post This?
I wanted to make sure that my strategy is working. Thankfully, it is. Moreover, I wanted to show how is psychological analysis can be applied.
If you liked this article, please upvote, follow and resteem. Please, share your thoughts in the comments too. I usually upvote good comments. However, do not spam. You will probably be flagged.
Does Psychological analysis help in making profit
That's what I am trying to prove by this post. Please, chech this post for more details
These things happen when you do things in an organised manner, profit at each and every step man that's really awesome. You really know this market
Thank you, @mumin007.
All great investors follow a system and a strategy. Unfortunately, regular people follow emotions, which is a fatal error.
my strategy is HOLD I am aware that bitshares and steem will reach the moon
That is a good strategy. However, will you be able to HODL when everyone is panicking? It is not as easy as it seems to be.
Bithares, steem established platforms will not disappear and cryptocurrencies will rise and fall but when they go up, what should be done is to diversify the portfolio and have other cryptocurrencies
same strategy works in old school stocks too. Running counter to the herd is great but you still need to be smart in your picks. Pick strength that is temporarily down due to panic.
That is absolutely true, @bigfarns. This strategy works well for the traditional stock market too.
Yet, the gains you can make in cryptos are much more.
That is correct too. I have picked those coins that have strong fundamentals. They are usually the first to rebound.
Man this is an awesome analysis of the market. I mean u have made profits in every one of them and that's incredible. That's a lot of money earned in such short period. And thanks really fit sharing this valuable information. @sadekj
This is a cool book: https://www.amazon.com/New-Trading-Living-Psychology-Discipline/dp/1118443926 which is about stock trading, but goes into things like the psychology behind trading and analysing graphs and charts. Definitely worth reading if you are trading crypto. I think you have a typo in the title it should be "Made" not "Maid". Nice article. :)
This is a great post.Every one should read this post like me because this post contain a lot of important information that is helpful for everyone.
Thanks @sadekj
Thanks for this technique. Doing the uncommon when everybody are desperate and panicking is actually the way to go. I get that. Your technique is really working so cool.
i loved the idea!! i wanted to buy when it was all falling but did not had enough new fiat to pump in. As this cycle keeps repeating we will get opportunities like this again. Glad you made a killing and thanks for sharing it gives lots of confidence.
I am glad you liked, @mayana.
If you follow the strategy that I have explained in my Psychological Analysis post, you should always have some extra cash when the market crashes. The reason is that you would have sold at the highs.
As a new bee i never know when to sell, now have been in this waters for 2 months (we know these 2 months are just rekd for crypto) i have learned hard way when to sell 😎
Thanks for sharing. This is very informative I am trying to learn how to trade cryptocurrency and I think psychological analysis can be useful in most situations in life but would have no idea how it works here.
Then, I suggest you invest some time in learning more about cryptocurrencies before you start investing money. It is extremely dangerous to invest before learning.
Awesome Post, Thanks for share information