Topic: How short-term market speculations can help small bitcoin holders (Read 283 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.

I would guess that if you could make a quick buck and do that many times over the result will definitely be a good one. I do get that we are not going to get a result that easily, but we are going to get something that will make some profit.

I personally believe that if we could try hard enough then making those little profits into a big one is not impossible. Of course you would have to do many of them, and that means hard work and constantly putting in hours, because you won't find them very quickly, so you will have to study really hard to make it work. I hope that people could see how it could get better, we should probably consider how to make some money easily, and that means that we need to make it work by just grinding very hard.

Very well said and I agree with the fact that bitcoin value is measured in fiat and no Marchant accept Bitcoin as payment on the bases of bits without the fiat equivalent or being used to calculate the exact amount of bits to be paid.


To newbies I believe their most favorable action is taking profits along the way as long as bitcoin increase in it fiat value and not minding what amount of bits they are left with.

It is in every newbie's habit to feel excited when they see little profits in their bitcoin investment. That's how I introduced someone to invest in bitcoin, they keep checking their bitcoin portfolio to see how much profit they have made from bitcoin each day.

When their profits in bitcoin had gone up, they became happy. when down, they seemed to be sad and moody, wanting to sell so that they would not be at a loss side. Which I can't advise them to do that. Although every one of us has the right to sell their bitcoin at any time they choose. But I deemed it right for us to keep hodling our bitcoin for long even if we are at profits or loss because the profits we are to make in the long run will be much higher than the profits we choose to withdraw now.

OP, your newbie bitcoin investor wouldn't have withdrawn his profits from bitcoin in the short term. You would have lectured him about the importance of hodling bitcoin for the long term, and what he stands to gain for that.

At the end of the day, Your goal in trading is to increase your fiat capital since that is the value you are using to purchased using your money. Bitcoin value is being measured in fiat amount and not in Bitcoin quantity since no merchant accepts Bitcoin directly for it value but rather they convert it to fiat value as standard currency.

Also he can still increase his Bitcoin holdings once the price corrects which is highly possible to happened on this very volatile market.

This is the happiest moment for him, but you have to be able to remind him that this is a trade with high volatility, so give him the advice to be able to take entries 2 or 3 times a day. In essence, he must learn to control profits, even though everything still looks profitable, having discipline will be more beneficial in the long run. For example, today he has made 3x the profit from his buying and selling. However, he still felt that it was not enough and did not limit himself from continuing to make aggressive purchases as if he would get the same profit. Usually beginners always have difficulty controlling buying and selling decisions, there is no target, no profit limit at any time without paying attention to trends. Sometimes they take advantage of the short time to look for quick profits but don't pay attention to the risks.

Don't worry for small bitcoin holder to earn much profit can try future trading, I think too difficult based on your capital around $60 to earn more than 10% to 20% in daily day trough spot trading because bitcoin price currently raise few percent in daily day. But future trading has high profit and high risk, your capital get possibilities liquidation with future trading but in this feature of trading has faster opportunity increasing your profitable although has small capital.
Indeed focus buying back when bitcoin get correction I don't sure will make  faster increasing to earn much profit because too small capital when investing in bitcoin around $60 by spot trading, you have tried with highest risk but promising highest profitable by future trading or take another highest level risk by investing meme coins.

Disclaimer its not recommended to follow but just comparison with faster profitable earn with small capital between spot, future trading and investing with meme coins.

That's right, when talking about bitcoin investment, what we should care about is how many bitcoins we own, not how many USD. OP's friend took profits and thought he had a profit of $57, but then if he took $600 to buy back bitcoin at the current price, he would realize he was in possession less bitcoin than the original.

I agree with some people here, there is nothing wrong with taking profits and enjoying them, but we need to have the right investment strategy. We take profits but then have to buy at a higher price, which does not mean we are making a profit.

Those who have not experienced any profit earlier will consider a little profit as a blessing and this step of taking little profit is better than to wait longer and lose more numerous opportunities of making huge profit. He made his entry when the price was lower and sold when he found a little profit therefore he became successful in achieving his goals.

This idea suggests that you accept the little benefit too because with such little advantages you can increase your income. We should not use our greed here because sometimes the situation becomes adverse as now we don't know that prices will go higher than 66k$ or will reduce so to avoid such doubt take the benefit on time.

But he didn't grow that initial bitcoin amount though, he just took out the $56 from the increase of the value of his bitcoin holdings, it's not a good thing for him at the long run, maybe telling them to do stuff like buying back when the price is low might be of big help so they don't succumb to something that would make them enjoy short-term gains but end up with almost no profits at the long-term.

Making profits is normal but many people don’t always appreciate the little they get from those investments, they prefer to have an x2 profit of their investment capital which is not so. Those that are appreciative of the little they get now are those that will not miss to sell bitcoin at an high price just after the bull run, they’re not greedy and not more than plenty profits is too enough for them to get out of the market when they get the opportunity. That feeling your friend is exhibiting is so natural and it comes once in a while and I am also happy for him. If he can’t add more to his bitcoin holdings, he can hold this till bull run. That is when he’ll see the magic of investing in bitcoin, he’ll be overwhelmed with happiness to see the result of his investment at that time.

It's probably already in the itinerary of that person that they will have to get back the initial bitcoin amount that they've invested into, I think that in this scenario, it's got something to do with them banking on the fact that bitcoin will go down lower than what they initially made a profit on and then they buy at that point but as you've already stated, bitcoin is unpredictable and it shows how it would be a bad time to be doing this especially for a newbie but in my opinion, if you're making the profit in a consistent manner but at the same keep on buying back to your original bitcoin investment value, you've got nothing to fear about.

Yeah there are various traders today that trade spot market as a short term trade just the way people do in perpetual trading. To me it’s a very risky form of trading most especially for a highly volatile trades, it can be much better without too much risk for coins like bitcoin who do not fall that hard or rather consolidate more the risk is minimal but still their is also risk there.

It is weird or not too good to risk $600 for just a gain of $57 this clearly shows that your friend has a very poor risk management that’s. If I were you I will advise him to go ahead and hold for long as the best beneficiary are those who hold for long.

But still let’s not take it away from him there is nothing wrong at taking profits at anytime just do well not to enter back at a higher price

If the intention was to hold for a short period and take some gain then had it worked for him. But with the level of knowledge you have what was the advice you gave to him? The reason why I asked is because the short-term profit only lasts for a while and if you check it out his accumulation in fractions of Bitcoin has received. I don't know why but I am more concerned about the fraction of Bitcoin I have more than the value in USD. If he had 0.1234 BTC and since he sold and took some profit he now owns less than 0.1234 BTC.

Oh really! He made a trade to withdraw his first profit of just 57$. Bravo!

 If I may ask you op, did he told you about taking the profit at this premature stage of his investment  before going ahead or he didn't? If it happens that he did and you didn't encourage him to be patient for the bigger profit ahead then you probably didn't do him any much good.

He may not know about this right now as he is excited about taking profit for now and if he continues that way with every little rise in bitcoin price then, in the long run when he gets to know the much benefit therein in holding for long, he might definitely not be happy with the decision you didn't discourage him from making today.

So unfortunate that newbie investors be taking evey little profit made at each bitcoin price rise when they ought to be buying and stacking (DCAing) for the bountiful harvest to come.

He took the $57 profit and then let alone continue holding with the $600 that he has invested? Well, that's the sweetest day ever for someone who's new to investing in Bitcoin because we're all wanting to have that first time ever to take some profits. Give him some reminders that the market isn't always like this. Who knows if BTC is going to be down once again under $60k and that will show his invested amount lesser. It's just for the sake of making him prepared for any potential scenario that can happen because nobody knows if we'd be back under $60k or we won't be this time anymore.

This may be seen as the right approach only to a newbie who does not know how investments in bitcoin work's and why there is the need to hold bitcoin for long time before selling off everything and take the profits completely by liquidation of the entire holdings.
But this method you posted in the ops can be seen to be bad movement since for the fact that he gain profits in dollars and taken off the profits in dollars, but the amount of his bitcoin in bits have witnessed a loses since he excahges a fraction out of his entirely holding for me this is not real profits and ops need to change the narrative.

It would definitely "help" if you know what you are doing, but guessing how you are going to do is harder than you may think. If it was too simple then we would all just sell everything we have, put it on 100x leverage and then make sure that the right movement happens and we could be super wealthy.

I could sell my car, put 30k into bitcoin today, with 100x leverage as well, meaning it would be like 3 million dollars, and with just a simple 10% increase, that would become 3.3 million, so I would make 300k profit, along with my 30k back, and I could retire easily. See, just my car alone would mean that I could retire a very wealthy man. Will I? Of course not, because it is simply just not that easy, we don't know what bitcoin will do.

Taking profits is never wrong but I think if you are trying to use this story to give speculative advice to people with small capital then it is not a good idea. What will happen to your friend if bitcoin continues to rise to $67k or passes $70k tomorrow while he has taken profits and made a profit of $57? Bitcoin is unpredictable and no one knows whether it will decrease or increase tomorrow. I wouldn't be surprised if he gets frustrated buying bitcoin for $70K in the coming days and no longer wants to think about short-term speculation to increase the number of bitcoins.

Good for him but while he just came in to the Bitcoin industry newly, you should let him know the dividends of keep holding and accumulating more even when the price has moved up higher to attain him profits.

Let him know that the higher value he accumulates is the higher chances he would stand to count more profits so that he doesn't have to continue to this emotional of being excited with little profits else when the market Price goes down to would break his emotions to be sentimental because his expectations would be continue increments while he is cashing out the profits.

Let him know that that point of time of his excitement of the market rising was just the begining and higher increase is coming to benefit him more of he can keep holding.

Not bad for a newbie at all, especially when he/she has a Bitcoin ethusiast like you around, then it would be much easier to grow his/her Bitcoin holdings.

Firstly, I would like to say that: $57 profit for a newbie who made a $600 investment isn't bad at all. If he/she continues to stay at alert(up-to-date with information) and following market speculations, then more profits are expected to come as time goes by.

Secondly, I would assume that the newbie is a short term investor, which means his/her recent profit would be use for others things that might be of necessity. Ideally, for a $600 investment, long term investment is often advice, but nevertheless, he/she should just do what's best, and I hope you are there to give your own suggestions if necessary.

Making profits is the climax of every business and investments, ofcourse there'll be no reason for the person not to feel accomplished, when they receive ROI. But you should let your friend to understand that Bitcoin investment is better to hold on the long term, it will guarantee him of a higher ROI, because it's a store of value and the it's history has shown that the longer it's held on the long term, the more profitable it becomes for the holder. If he has a job that gives him steady income, then let him adopt the DCA method, it'll help him to more committed in his Bitcoin investment on the long term.

Things like this actually feels good for those who are yet to fully be committed to Bitcoin. Perhaps your friend have now understood that he can actually make money from Bitcoin. What I will suggest is that you guide him on how to make better Bitcoin investment decisions which is holding for longer period of time. This short term trade has several challenges because if you ask him what his next plan is, you will be surprised to know that he is probably confused now and not knowing what to do. The danger of this is that he might want to repeat the process but there is guarantee that he will get the same result and if price lingers to give profits, he might panic and sell at loss.

I have a newbie bitcoin investor close to me and yesterday he made his first gains from his bitcoin holding although a small amount of profit considering his total bitcoin holdings, the gain was about $57 which for him is something he haven't experienced before and it got him excited.


He bought bitcoin when the price touched $60k some days ago with a capital of $600 bought bitcoin and when the market price increased to 66k just within days, he made a trade to take the profits which for him was an exciting results and excellent one at that, so I thought sharing his experience here will give us more avenue to discuss some other possibilities as he continue holding and expecting more profits.