$850 USD to $10000 USD Trading and Investing in NEO Journal – Week 3 – 08/28 to 09/03
GENERAL STRATEGY
- Buy $850 worth of NEO using Bitcoins.
Bought 18.15 Neos on 08/14/2017 at price of ~$47/NEO. - Do not invest additional BTC or USD into NEO.
- Position trade NEO using Bitcoins to collect additional coins.
*UPDATE TO STRATEGY(08/27/2017): Additional 0.5 Bitcoins are set aside to buy NEO for position trading. No additional BTCs will be used. - Trade on Bittrex exchange.
- Wait for NEO price to keep rising!
CHART NOTES UPDATE
Yellow number markings: 
indicate how much NEO coins were gained from trading. This number could either be next to a sell order gained from one trading pair, or displayed during a period where more than one trading positions (multiple buy and sells) were taken. A blue arrow will show the trading period group.
Green number markings: 
indicate BTC value sold to buy NEO (negative number next to buy indicator) or BTC value regained from selling NEO (positive number next to sell indicator). In the end, this should add up to be -0.20 which is my original BTC invested to buy NEO.
08/29/2017 – 08/30/2017 – NEO DROPPED ALMOST 25%
After an uneventful 2nd week, NEO price experienced a sharp decline down almost 25% from 6:00 AM to 7:00 AM EST. A buy order had been pre-placed about 10%(773.3k satoshis) below the most recent base drawn out, but no other buy orders were set lower to catch the full panic. The buy order using 0.15 BTCs to buy was processed.
A quick bounce from 650k satoshis to almost 800k satoshis happened, but I decided to hold my position confident NEO would rise back to 850k sats. However, the opposite happened as another sharp drop of 12% occured in the afternoon, of which an additional 0.15 BTC position were bought at 655k satoshis. Now I’m in a total position of 0.3 BTCs but now at an average buy of 714k satoshis. All sells above 714k at this point would be profit.
Half position of BTCs were regained selling some at the top of the bounce around 790k satoshi price still leaving 0.15 BTC position open.
Adjustments and lessons to be gained:
- Have multiple buy orders strategically placed to catch as much of a panic drop. Every 10% drops below base is ideal.
- Participate in every bounce even if it’s a small profit.
09/01/2017 – 09/02/2017 – NEO CONTINUES TO DROP
NEO showed steady drop from 08/31 to 09/01. A small panic at the end led a buy order completed below 600k satoshi price putting me in 0.3 BTC purchase position. This would be the lowest NEO price at this point of the challenge.
A bounce followed the next day where 0.2 BTC position were regained leaving just 0.1 BTCs opened. This position is currently at a sell order around 800k satoshis shown as SELL LIMIT in graph above.
HOW MUCH NEO HAVE I GAINED?
During trading time period between 08/29 – 09/02, 2.5 Neo coins were made on all trades with Neo value equivalent of 0.1 BTCs still open to sell. This totals to be approximately 4.42 Neos made since the challenge started. If open order at 800k satoshis completes, an additional 2 Neos on top will be made.
WHY DIDN’T NEO BOUNCE BACK TO 850K SATOSHI (BASE)?
Neo’s price has been supported above 850k satoshis for over two weeks, so why did bounce fail to return after the panic?
Luc had a very solid explanation he posted on his steemit blog from a chart analysis perspective explained. Visit that comment here: https://steemit.com/dtube/@quickfingersluc/ivqzo23m#@quickfingersluc/re-unknowntrader-re-quickfingersluc-re-dscenterprises-re-quickfingersluc-ivqzo23m-20170829t221653246z
Also the main reason stems from news centered in China where Red Pulse made an announcement that the “Chinese government has issued a new set of guidelines to crack down on illegal fundraising”.
https://cointelegraph.com/news/neo-based-platform-red-pulse-bans-chinese-citizens-from-their-ico
But despite the “bad” news, the price of NEO seems to hold strong with no other further dips, and I’m hopeful we will see a return to base soon. However, I am ready to buy up if there are subsequent panics.
PREVIOUS BLOG ENTRIES
WEEK 1 - https://steemit.com/investing/@oneluckyflip/usd850-usd-to-usd10000-usd-trading-and-investing-in-neo-journal-days-0-4
WEEK 2 - https://steemit.com/investing/@oneluckyflip/usd850-usd-to-usd10000-usd-trading-and-investing-in-neo-journal-week-2-08-19-to-08-27
DISCLAIMER
Nothing here is meant as financial advice. This is just a strategy that I'm using as a cryptocurrency day trader. Please seek a duly licensed professional for any financial advice. Never forget, cryptocurrency trading is extremely risky and never invest more than you can afford to lose!
Thanks for visiting my blog and happy trading everyone. Let me know what you think in the comments section below.