Topic: How short-term market speculations can help small bitcoin holders (Read 250 times)

Just like you said "Newbie, I wasn't expecting anything other than that imagine  someone that have not invested or perhaps he has... before in Bitcoin and then the very first time he is making profit within some days. Normally he is suppose to be excited and I think he is wise for taking only the profit and leaving the capital to still yield more profit for him and then as time goes on he can accumulate more and hold.

If $57 is what he entered the market for, then congratulations to him, but most of the time traders FOMO and buy back at a higher price. I don't know where your guy is coming from and what $57 means to him, but I doubt that this was the one big deal he was after. Trading back and forth is the best way to lose in the long run in my opinion. Look he only went for 10%, but with BTC volatility and well known breakouts from the past, I am wondering how this strategy would ever please him.

Does he want to exit the market forever or is he one of those traders who thinks he could catch every 10% movement to his own advantage? It is not going to work out like that and I guarantee there are a lot of people here who will tell you that they tried it and it didn't work. BTC is now at 70k and he would have been better off holding.

You said he is a newbie though and that is what newbies do I suppose. A fundamental analysis of the technology and building an understanding for all the implications BTC can bring about would definitely be the best strategy.

Selling at 10% gain with that amount of money doesn't get him anywhere, because what now? What's next? Has he rebought at a higher price already? I guess if someone goes into the market with $100 million and is trying to make 10%, it somehow might make sense as they can trade info they might have. But with relatively slow amounts trading info is not making anyone a lot of money. You'd rather invest and stick to it because you are convinced of the potential.

I am puzzled bny the majority of comments here and how your friend must be blown away to have made 10%, calling it "massive profit", instead of explaining your friend that he is now stuck and should rather come up with a plan. If trading is fun to him, ok, but would never do it with 100% of my holdings, which seems to be the case here.

He must have been very happy to see such a massive profit within short period of time, but let him not be over excited about it and get carried away by getting greedy and jump inside another trade immediately. You have to educate him that it's not everytime that he will see profits within such a short time. He's lucky bitcoin is already in a season where green days are more than the red days. Let him also know that there are days he will experience loss and when that day comes, he shouldn't rush and sell off due to panicking, since he is a newbie, you have to guide him properly so he won't get into some emotional and psychological problems. When the days he run into loss comes due to market volatility, he should hold on to his bitcoin and not panic sell, he also has to understand that if bitcoin goes down that it will surely come up back to the price it was bought, if he can be patient and Hodl.

If he's interested in short-term profits he should continue to take such volatility opportunities to make such trades, If he's interested in saving amount and interested in safe future potential he should keep accumulating, that is really great he's exploring the market but he needs to go to depth study. Make sure to guide him well so that he should not fall into the fast money tricks such as crypto signals and premium TG groups.

Mostly newbies fall into such traps so if there's proper guidance from an experienced mentor, it can save a lot of his and most importantly precious funds, because not everyone can afford the heavy investment.

This has worked for me as well and this doesn't work during sideways market but when there are constant fluctuations this helps us in quick gains and I have tried this with Solana as well especially when it was trending between $135 to $175 after we see an initial dip to $120. The only requirement here is our time as we need to invest more time to stay updated with market trends and make the right buy/sell call.

If a person wants to buy and hold bitcoins I will never stop him because I can't find anyone investing in bitcoins and holding them for a long time but still facing losses. Those who prefer Bitcoin as an investment and try to hold it must make a decision after knowing Bitcoin well. But those who want to invest Bitcoin and dream of profit in short term from investing will never get the expected result from Bitcoin. The person who is profiting through you must be congratulated but since he is novice he must also get a good idea of what are the pitfalls of investing here. Otherwise, if the market goes negatively, they will be disappointed quickly.

That is a fact because it is difficult to repeat the same thing many times in the process that we do because we are talking about prices that are quite fluctuating and the support of knowledge can also influence actions not to get the same momentum. For beginners there are many things to consider and maybe they cannot understand the psychology of how the market goes sideways and when their knowledge is unstable it will cause panic in these conditions.

Even for people who have a lot of experience, it is difficult to find repeatable patterns in investing or trading. If you take it at the end, it is more suitable to use a long-term investment pattern compared to trading because we only think about accumulation while the final process can wait until Bitcoin reaches the next ATH.

The truth is that this is very complicated because long-term speculation only serves to help those who trade every day and do futures, and all this that has to do with medium and short term, but for a hodler the only thing that What matters is that the price reaches a high ATH, that would be the only way for a person to consider being a hodler, an investor cannot be compared to someone who trades and wins or loses with the rise and falls of the price of bitcoin, It would be something that is not in their minds, investors wait, they are patient and only pay attention to the price from time to time, it is difficult to help the speculations.

It is hard to repeat the same thing many times over, but it is also quite important to realize that you did something right at one time, and try to mimic that, while you may fail to do it once in a while, you may end up doing it eventually. Maybe at first you do it just once a week, then twice a week, maybe then eventually you start to do it every day.

This is why it is not important to not be able to do it back to back at first, you could just do it eventually and that is a lot more important. I should be doing something right just once, then if I do that, I will know if it is going to be good or not in the end. This is quite important, just keep at it and you will get better and better every day, that is more important.

It talks about consistency and it may not be easy to repeat the same thing at close times, especially if the price of bitcoin rises significantly so that the amount of capital he has will affect subsequent accumulation. But when he has a good sense of optimism and is equipped with complete knowledge, I am sure he can carry out the next investment.

Everyone has different experiences and it really depends on how one can make the right decisions relying on good knowledge. This pattern is more often used by daily traders who have good analytical skills, but it is quite rare to find these abilities among beginners. I am not trying to underestimate anyone because I am sure experience will teach anyone to make much more precise and accurate choices.

I'm not sure if he could repeat the same pattern after he exited and made his profit. But I can confirm that his capital budget had become $1k which would have allowed him to earn more bitcoin had he re-bought at the same low price.

Swing trading can be used by traders to multiply their capital, which will most likely be even greater if the trader succeeds in doing it very wisely. I have seen so many traders start with small capital and turn it into large capital over a period of time, but this is never easy because you have to be able to analyze the market and take advantage of its volatility. Such a trading strategy is good, but I think the trader must be active enough in monitoring price movements or current market conditions to be able to get opportunities.

If we can understand the logic behind starting small and growing big, then we may know the reason why many of the bitcoin traders uses such approach as means to stay safe on their trades especially when they were just starting, they uses such means as to reduce the rate on loss and uses the same approach on building on their capital to use for trading and they will wait till they find the appropriate time for them to enter the market before buying and then hold to sell at the right and perfect time as well.

If your friend is not ready to hold for the long term then I think taking advantage when you get profit is also a good thing. And I'm more curious about whether the capital he used was short-term or long-term capital in the beginning?
Did he change his mind to short term after seeing the profits even though he originally intended to be long term?

If he is not ready for the long term risk then he has done the right thing. But if he had initially prepared the capital for the long term. So he must first confirm whether the capital he is using is really cold capital that he doesn't need in the near future. And he must also be prepared for losses which are the risks of an investment. If he is ready for all that, then your friend must strengthen himself in holding the bitcoin he has bought. Because I'm worried that he will be drawn back in when Bitcoin continues to rise to a higher price than when he sold it. Usually hasty decisions can make investment planning a bit chaotic. and can disturb the investor's psychology. But if he still believes in the long term and is still holding on to it until now then that is a good thing.

If your friend has limited capital. Then DCA can be done. Try introducing your friends to DCA.

The feeling of getting return from the first investment is different from the others. Because a person dreams and tries to make his investment in business in the future when he can earn money from it after becoming a newbie. He tries to make his career in trading with many dreams. Here the feeling of a new trader is completely different. An investor is satisfied with an investment only when he gets expected returns. Although he has profited by short term trading, I don't give much importance to short term trading. Because short term trading is quite risky. I do long term planning in investments. An investor's long-term planning will reduce his risk. Moreover, long-term planning will always lead to profit.

In my experience in investment or trading, if you speculate using short-term methods and market speculation, it takes a long time to make a profit on Bitcoin, especially in small amounts.
The problem lies in Bitcoin's movement, increase and decrease.
For example: you buy Bitcoin at a price of $67,000, with capital of $600, you only get 0.00894 bitcoin in the next three or five days rising to the level of $70,000 very little profit you get and so on.

However, if you have a large amount speculating on the short term market it may be promising, $67k and $70k short term, at least if you have 1-2 Bitcoins you have already earned $3000-$6000, that's real speculation.

So the lack of capital for Bitcoin is short term, it takes too long to rise, like a snail walking.

That's right, we can see the price of Bitcoin from when it was first created until this year, the price has been very high and it is impossible for us to get the Bitcoin price in 2010 again. Because so far the demand for Bitcoin is very high making it difficult for us to get Bitcoin at low prices.

Traders can always exploit bitcoin price fluctuations in the market to gain profits in the short and long term. If your friend really understands the market and is capable enough to develop an interest in analysis, then I'm sure he will be happy to trade.

Expecting more profits basically has to be adjusted to the amount of capital you have. If you only have $600 as capital, then you will not get $600 in profit unless the price of bitcoin rises 100% from the price you bought it. Of course there is a possibility of that, but you have to wait a long time and have to be patient.

In essence, the capital and potential profits that will be obtained will be worth it. The higher the capital you have, the greater the return percentage you will get even though the price of bitcoin only rises a few percent from the price when you bought it.

If you want to maximize your profit as a newbie, you'll have to hold longer. While it is enticing to sell for profits when you've just bought it and you're in profit.

You'll have to reconsider if you can buy back the sold bits that you have. Because not all sellers can be buyers next, why?

Because we'd feel that it's not appropriate anymore to buy at higher price when we've held it before.

That's a great move for a first purchase and I think it will be a great motivation for him to pursue future investments. Small capital will always be an obstacle for all investors because it will be difficult to collect large amounts of bitcoin without sufficient capital support. This is different from investors who try to buy using the DCA method because they can set the rhythm of buying a certain amount at a predetermined time.

I think he masters Bitcoin much better than most beginners because from the information you gave, he has quite mastered it. If he can repeat this pattern, I'm sure he will become a reliable investor, as long as he doesn't panic when the market experiences a correction and he knows how to accumulate properly using slightly smaller funds. Beginner investors do not have much experience and usually they will only utilize long-term patterns for investment strategies.

I think Op has been good at persuading his close friends to invest in bitcoin, and of course Op has mobilized his knowledge and provided this information to his close friends. This goes back to the asset holder, whether he panics when he sees fluctuating prices, so when he sees a profit, he immediately takes profit. Let his friend process, at least he already knows what he's getting beforehand.