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RE: A bit of my history with trading, prediction market activity on the platform and how to pretend that you are good at trading!
So I split my initial portfolio in 3:
- Long term holdings. These are coins that I absolutely believe in long term and look to accumulate over time. Any profits achieved via 2 and 3 will be stored in these.
- Medium term bets. Here I look to buy a few different coins that I think are currently undervalued and are much more likely to have a significant rise than an equally large fall. Usually coins that I think solve an interesting problem, or can provide a new platform technology to improve the capabilities of a big market (like LBRY for books and vieos, and BAT for marketing).
- Liquid funds for day/minute trading to take advantage of short term pumps and dumps. When I started out with cryptos in the bull period starting early June, 100% of my "funds" were allocated here. The goal was simple: Identify the coin that could provide a 5% gain in as little time as possible. Establish a handful of "simple rules" for selecting the right time to buy, so as to maximise the likelihood of achieving that, and then having the discipline to always sell at 5%. The result was a tripling of the initial investment after 25 days.
Looking to get more accustomed to this new world, and increase my shares as much as possible in long term coins like STEEM :)
this is a solid strategy imo
That sounds like a great way of trading while leaving out the "stress" factor!
The great thing about creating and improving simple rules for trading is that it makes it much easier for you to learn their effectiveness. Without it, you too often delude yourself by believing, with hindsight, that you have learned something. (It is always easy to feel clever when you look back and think what you should have done). But when you had simple rules that you followed, you can observe when and how they fail, and make adjustments on that basis.
Anyways, the whole 5% rule I've made is to take advantage of the fact that most people seem to have their eyes and minds so fixated on spotting the next top, that they fail to take advantage of all the short-term gains that lie right in front of them :)