Topic: risk in hodling and trading strategy - page 5. (Read 26446 times)

HOLDING is actually one of the most terrible idea especially if you dont study the project so well i remember holding almost 500$ and then turning into actually nothing at the end of the day with the devs complaining and blaming the bearish market so just know what to actually Hodl

I completely agree with your statement and quite understand that today all activity for a newbie in the cryptocurrency market carries a very big risk. Regardless of whether it is a daily trade or investment in an ico company. Today, the presence of a large number of fraudsters also contributes negatively to the future results of our activities.

I differ greatly in some of the affirmations, hold is not just a recommendation for novices, investment is a strategy that has always had world-class investors, Warren Buffet is not a novice, Tom Williams, Jon Greenblatt, most have been investors and have a great career and have been authors of books that are based on their experiences, giving advice about making investment, which recommend making an investment given a prior investigation of them, whether actions or, in this case, cryptocurrencies. Everyone agrees that you should wait a long time to get benefits, that is, you can become a millionaire over time.

Now, if we take into account the current state of the market, analyzed with the support of the theory of Wyckoff, we are in a phase of accumulation, special to buy and maintain until the bitcoin has its upward stage.

Market speculators can trade, provided they know how to do it in the right direction of the market. The famous Jesse Livermore, a market speculator, always said that he should follow the market line that has least resistance, that is, it can never go against the market.

If your considerations in OP are for ICO projects or new nascent projects, these results may occur, but it is advisable to invest in currencies such as Bitcoin and the coins Top 5 worldwide, since they have a greater structure and confidence.

The processes of speculation and investment will always have their risks, nothing is certain, you should only choose what risk you want to take.

For this we will have to remain moderate, try to hold when market is low and don’t sell at panic but for holding it is very important to keep our eyes on market, greed is not good when people only hold and hold in wait of increase the profit, they suffer lose, after certain rise when price start getting down, then sell don’t wait for more profit.

for the risk of trading and holding it is equally large because in trading if we are too panic then it will be a loss as well as indeed if we are impatient and too long to hold it will be a loss too

I've seen many times on this forum statements like:
"trading is risky, holding is safer"
"when you are hodling you are not making that many mistakes"
"in trading there are much more possibilities to lose money"
"if you would buy ether for 1$ look where you could be now"
"Hodler is not affected by whales making pump and dump"

Let's discuss then how does investing time goes with risk taken (lets discuss only about risk).

Hodler strategy risk:

Hodler is buying coins by fundamental (whitepaper, team, code, hype, being unique in specific segment) analysis for very long period. Hodling is a strategy very often suggested for newbies in cryptos (when you are newbie than buy good coins and sell on profit after years - I heard it thousands time). What can go wrong?

1- whitepaper is just a document with words. It can be copied and change a little. Faked. I can create my own whitepaper in which ill write that tomorrow ill be on mt everest.
2-team can be faked with fake twitter account with bought followers
3- code - who of us can check if code is OK? How many of currencies have working code now? Most of them are just concept without working product jet.
4- hype can be bought.
5- being unique didn't give you certainty of being unique forever. 1 month after your investment there can be new ICO with better team, bought hype and with working product delivered faster.
6- you are newbie and you did fundamental analyst wrong or didn't do at all just jump after hype or because someone said that its great investment
7- there are 1600 coins. More than 1400 won't survive next few years because they are not necessary. Your decision must be precised and full of luck

What if any of above will happened? Your investment will continuously goes to 0. And if you are hodler you will never sell until there will be nothing to sell. When you are buying with hodler strategy you are risking 100% of your investment. I don't think there is more risky way.

Trader

Good trader have loved coins that he checked fundamental and trade on them. He is trying to buy low and sell high. When trade is not going how he planned it he sells. He don't w8 for coin to hit bottom to panic sell, he tries to sell on the rise. His risk is set by him by stoploss which is set in his trading strategy. And it depends on time period he is investing in and expected profits. He don't fallow pump and dump.

Time period:

When trader see good buy opportunity on 1d candles he has to set stoploss lower, he takes bigger risk then but possible profit is bigger.
When he sees opportunity on 5 min candles he can set stoploss even 0,5% under buy point risking only 0,5% of his investment.

Trader is taking known risk each time he enters trade and this risk i related to expected profits. When trades are not going well he can stop trading, lock money into bitcoin or usd and change strategy. Hodler takes unknows risk - up to 100% - for unknown profit. With hope that his analysis was good and data wasn't faked. He also don't have chance to learn to invest because after first buy decision there is only hodl

Trading isn't for those who are scared to lose their shit at the same time you must be careful, well it's a complicated matter . Other than bad-mouths we can always rely on holding than risking it for a low price to pull it up after. The pull up strategy is a good one but that doesn't guarantee you to have everything, well there is a saying what can you do if you are already dead, that saying also implies to various things like money or possessions.

I guess not. Holding is not a sure way of gaining profit but its a safe way to play with the market's volatility. There is no certain things here in the market when speaking of price and values but one thing is constant and it is the movement from time to time of prices wherein holding becomes risky.

HOLDING is actually one of the most terrible idea especially if you dont study the project so well i remember holding almost 500$ and then turning into actually nothing at the end of the day with the devs complaining and blaming the bearish market so just know what to actually Hodl