Live Trading 3: STEEM - Elastic band
Similarly to my previous trade with XLM (link below) I have decided to take the opportunity and capitalise from the over extension of STEEM token. Normally you would have to have an account on an exchange where you can short the coins, however, I had a chunk of STEEM sitting in my exchange account so I decided to sell my coins temporarily to hopefully repurchase them with a profit.
This time STEEM overextended to around 48000 sats (RSI 70+) and as soon as it started showing signs of popping back down I have placed an order to sell. As expected the elastic band sprung back to it's support level which previously acted as resistance which in this situation was around 39500 sats. Check out the graph below - my entry and exit point are shown as blue/green lines.
Result is another profitable trade in the bag with approx. 12% profit.
Link to my XLM trade: https://steemit.com/cryptocurrency/@andrius1/live-trading-2-xlm-elastic-band-effect
Dear andrius1,
Nice post, generally, I think; but I do not understand everything. I am a good and experienced trader concerning shares and since about one year cryptocurrencies too - I share my tas quite regularly.
However, I am more into mid- and longterm trading. I do not know one single daytrader who made more profit than a longtermtrader. No offense my friend. I am just honest and telling you my opinion.
Well, regarding your post, I do not understand your entry and exit points; I mean, where exactly did you buy and sell?
Or do you mean, that you bought on the 26th, went short and sold eight hours later?
Forgive my ignorance.
Yours truly,
Gandalf The White
Gandalf, thanks for your comment and your insights - I have followed you and will check out your posts. While I do agree that long term investing has it's merits short term trading can also be profitable and it is something that I do when I see good opportunities like the one briefly described above. Most of what I do (financially) is actually long term investing with a high proportion of my portfolio allocated to stocks and funds. Cryptocurrency markets lends themselves quite well for short term speculation, however, as we all know it comes with it's own risks. To manage this risk I look for opportunities with good profit/loss ratio and set my stops to prevent me from losing a lot of money - I will try to talk about this more in my following posts.
I think the key message here is that everyone has his or her own style and system for investing / trading so I am not going to attempt to convince you this type of trading is the one true way of making money. The best system is always the one that works for you!
I take your point about not being clear where my entry and exit points were though, it looks this is something I need to make sure I communicate clearly in my following posts. To clarify, I went short at 45731 sats and closed my position at 39591 sats. which is a 13.4% profit on this particular trade. Blue line shows approximately where I bought and where I sold.
Thanks once again for your comment and I will see you around!
Thank you for your kind respond. You are welcome my friend. Thank you, I hope my posts will help you. I am sure they can. Of course shortterm can be profitable but it usually is not as profitable as mid- or longterm; moreover because it is very difficult to predict.
Whatever, you sound like a smart person, I like that. I can see your point.
True, always have the right risk management. Simply follow the rule: "Do not lose money.".
Could be true. Imo, of course, there are many different ways to trade correctly but I know that my strategy works and well, I am only here on Steemit because I want to help other people to achieve financial freedom. However, I do not say that my way is the best - people who really want to become a trader need to keep calm and be rational; do not follow emotions and find a strategy/trading plan which fits you best. Keyword: discipline, as always in life.
Absolutely; I generally like your comment - you seem to be a lit person.
I really did not mean to be mean (lol), I simply did not fully understand. So, thanks a lot for the clarification. Now I got it.
Have a great day my friend!