Just wondering if this technique would work. I did buy coins and have a good portfolio which I bought at dips but now market has dipped even further.
so by selling off any coin now, I end up at a total loss.
however my question is there a way to gain profits , even in when slight greens.
such I am thinking this
at a moment of a green, even though value still be below what I bought a certain coin at.
can I regain a loss as in make a profit
as in selling out a coin at a green and buying into something else, that is low value but has faster gains?
if that makes sense?
an example I bought BTC when it was say 8000 usd.
say now its at 6500 usd , just using this as example
then market goes green and raises to 7000 usd
I am still at a loss
but is it possible to sell my BTC and then buy into a low value coin that has development
lets stay Dragonchain.
as I don't have dragonchain yet
could I regain my total overall value in a gain by buying into an ALT coin like this and hope for the faster growth in green to regain a loss I made on BTC
just asking any of the expert traders out there?
or am I best to wait 2 years for market to fully raise up above the prices I bought my BTC original for
even in my example this same scenario could work for LTC or ETH, if not BTC
if that makes sense
thanks
I think this is a very good question but has a complex answer.. where to begin..
To answer the last part of your question first I think waiting 2 years for the market to recover is a bad option.. 2 years of not trading is the same as losing money.. its best to not let your situation get so dire earlier on (which is probably the most important thing to take away from this but thats another subject) but considering that is the situation.. yes it is possible to segment your losses into incremental gains in a bear market to work down your cost average but you need to approach this very carefully. I use a laddering type system...
Lets say you have 2 BTC invested in something that is out of position and you are down .8btc overall.. you could start to trade upswings and cover the bottom with profits in a ladder system.. so to make sure you don't get further out of position I would trade .05 BTC or .1BTC in your first sell.. if in incrementally goes up again I would sell double (.2btc) and double again (.4BTC) and stop there. You need a majority of your position incase it continues to go up and you just need some leverage to cover the bottom if the bottom falls out again.. you do the same strategy if it drops.. first buy .1 btc.. 2nd buy .2 btc, etc. It allows you to play the gap to make up some gains while being very unlikely to be out of position permanently and still not being idle waiting the two years for the price to come back.. figure out how many coins from these position trades you need to break even and once you have accumulated that number of coins its okay to start making riskier trades as you ladder up.
Specifics of coin doesn't matter, but I will say this.. start to focus on working BTC dips and corrections for quick alt entries.. you can clear 8-10% easily if you trade alts with btc/usd chart simultaneously open and can start to accurately predict the bottom (or the quickest possible reversal).. just don't get greedy in bear markets.. 10% is incredible but so is 4-5% if thats all you feel comfortable with. Its about participating and participating positively over sitting on the sidelines and pouting.
Learn to use fib retracements always.. never consider entering trades that aren't atleast 50% fib or more retraced so you don't enter positions poorly.. it helps eliminate fomo and makes you wait for good trade confirmations which is likely the problem to begin with if youre way out of position.
If you are uncomfortable with trading and feel like the trading entry point is your struggles then don't do any of this without a couple of weeks of paper trading.. if you feel like you trade too emotionally or enter/exit too often then up your time candles..start looking for positions on day candles and work down to 4 hour candles.. the larger the time frame the bigger and safer the move with less emotional swings... avoid 1-30 min candle time charts altogether and save 1 hour charts for when you have more experience. Heres some trading indicators I use from another thread I wrote that you may find useful in this journey. Good Luck.
From a previous post:
Moving Averages on the Day Chart (50/100/200 Day) - I value this one the highest.. its simple, and allows at a glance of scanning coins what has pulled back enough from runups that may be worth looking at if other indicators seem positive
Fibonacci retracements for buy and sell zones (just ideas on where to look for resistance levels to take profit, always leave the areas a bit lower, since everyone uses these to sell as zones, hence the more who use TA, the more of a self fulfilling propechy it becomes.
Bollinger Bands (sometimes I use these just to see how tightly wound things are getting when trying to break out from descending wedges/bull flags/etc.
MACD and RSI (just a quick indicator to pair with others to confirm the information the other indicators are showing me)
Ichimoku Cloud - Love seeing the overhead resistances and when on bull runs if its starting to fall flat.. this indicator isn't good on its own but like using with others.
Things I don't find useful:
Elliot Wave Theory - I can certainly appreciate the concept and I think overall the general concept of any 1-5 wave will lead to an ABC correction in a general sense is good, but as a predictive price to buy or sell at, it seems way too optomistic 99 times out of 100 to me. When chasing coins on a pullback however I do wait for the confirmed C pattern to form.. the problem is large runups can lead to a very long C extension (especially when paired to BTC acting up) so its just best to wait for confirmed reversal pattern over trying to buy based off of the measurement of C.
RSI alone - alot of people use RSI alone for whatever reason which I don't feel is a good idea.. it can in a general sense show if something is overbought or oversold, but something can rally oversold for days or weeks..btc in 2017 is a good example... if you sell when something is overbought or buy when its oversold, youre gonna miss alot of the tops of runups and get cut by the falling knife as it just becomes even more oversolid.. wait for other indicators to confirm what the RSI is telling you.