..and if I was to buy in again, with a huge loss, I can be sure it will drop like a stone two days later!
I bought back in yesterday and the day before.
You will *never* guess what happened then!
Jimmies: rustled
Ente
Ente since you seem to be self-described as a terrible trader let me suggest a trading strategy that works if you are a long term bull (if you believe in the long term success of bitcoin).
1. Don't sell at a loss. If you get caught in a bull trap, move those coins into your long term holdings.
2. If the price declines significantly (by 25% or 50% you choose), buy what you can and trade those until this $ is caught above again (see 1).
3. If the underlying security really is a very long term bull, the lower it goes the better you'll eventually do...
4. Profit! :-)
Note that this degenerates in a bear market (if you keep getting caught) into the well known long term dollar cost averaging strategy
A similar, more constrained strategy is when the price drops in half, recheck fundamentals (i.e. is the outlook still very long term bullish?) and double your investment. This can be a very lucrative strategy because you end up with twice as much at the lower price as at the higher so if you get a full retracement to your original price you are way ahead.
If you pick the wrong security and it ultimately goes out of business... well, you lose! :-)
Thanks for the plan!
Yes, that's a kind of difficulty level I feel comfortable with :-P
It seems like I repeatedly have the problem to buy in too late/expensive. Being long-term bull, I have no problem sitting on my bitcoins and seeing the exchange rate drop.
My problems come when I think "hey, everything looks obvious that the rate will drop in the next days! I sell now to buy back in with a profit!" and then the price just keeps on climbing. Eventually I buy back in, at a loss (and then the price drops like a stone).
Currently, and normally, I have no fiat laying around (on Gox etc). I am 100% bitcoin, and sell only to play a round of "bad speculator". So when the price drops, like now, I can't even buy additional bitcoins..
Things I already learned the expensive way:
- first plan often is better than second plan
- decide, then stick to it
- wait long enough for it
Thank you people for your thoughts!
Maybe a new thread is due?
Ente
