I've recently started to get serious in the crypto world and I'm absolutely fascinated with everything, the tech, the ideas, the price volatility and the overall buzz. I've 2x my initial investment already (BTC wise) in 18 days using what I presume is a very aggressive money management strategy and was wondering what is a reasonable ROI long term for your overall portfolio per month? If you started with £/$1,000 and doubled it every month then you'll be a millionaire this time next year.
You yourself defined the strategy to be "very aggressive", do you really think that it will always be in your favor to make a 100% putting all your capital on stake? When it's extremely aggressive, chances of losing are always high over winning trades and making 100% a month is like "too good to happen" every time (unless you're super lucky like Tim Sykes). Turning out any amounts to a larger one needs a well-planned money management and going harsh on your capital by trying to double it "all of a sudden" is not good.
Crypto is getting more and more new investors and should continue to do so, we know that. Is 100% roi every 4 weeks outlandish if you're day trading full time or was this too small of a sample size?
Making 100% a month isn't impossible, but something too risky. Growing your capital slowly and establishing your plans into your management will help you get up in a much better way as well as provide you with a vast amount of learning experiences. If you're going to try this, do it with something you can afford to lose. I can only wish you good luck and pray that you succeed each month to choose the best investments. Remember, your choice is what it takes to make you a millionaire or a bankrupt.
Of course not and nowhere did I mention I had all my eggs in one basket at once. I've been using the most fundamental strategy of buying low and selling high, good entry and exit points are skills I need to improve upon for maximum EV. Bankroll management is indeed a very crucial factor to be able to succeed in this area, luckily I have some experience. The goal isn't to just aim for 100% ROI every month, it's always about maximising returns and whether that is 100% long term is another question. Thank you for your input, I will relish this challenge.
I've 2x my initial investment already (BTC wise) in 18 days using what I presume is a very aggressive money management strategy and was wondering what is a reasonable ROI long term for your overall portfolio per month?
everyone is a genius in a bull market.
some of the best altcoin traders i know have some of the most painful drawdowns i've ever seen. altcoins are
seasonal, so it's difficult to think about on a "per month" basis. they spend most of their time consolidating or downtrending vs. BTC. then during a small time window, they drastically outperform BTC. this means you could have several losing months with big drawdowns before making massive gains that eclipse those losses. this is a lot like poker players who specialize in large multi-table tournaments. they grind out long break-even and losing stretches for occasional massive wins.
If you started with £/$1,000 and doubled it every month then you'll be a millionaire this time next year.
the markets will never allow you do double your money every month. more likely, you'll go broke by being too aggressive without proper risk management. trading is a "slow and steady" job. you need to
grind it out. this "get rich quick" talk is the hallmark of someone who is going to blow up their account if they don't wise up.
Well, funny you should say that since I am a full time poker player. I believe the mindset of a poker player approaches this situation differently as we are used to grinding out small edges which accumulate up over time. Also like a MTT you described there is a lot of "dead money" or huge value in these tournaments that your ROI long term would be much higher than say a 9 man SNG if you can endure the variance. So in a way, I see the market as simply a huge tournament where the hyped up late investors jumping on the wave when it's already near the top adding extra value to the price, then when you sell you're making a lot more than if you were competing in a field with savvy experienced investors. Good point with the seasonal aspect of altcoins, I knew this was a good period but not sure how often these periods last where the % gains are very high. What I know for sure is there is a ton of money to be made here but you need to be smart.
There are many ways of making money with Crypto.
Hodling is one of them, but it won't always go up in a straight line.
If you want a job in the blockchain industry you really need to be at an advanced level of programming. Then you can get hired by some bitcoin service or exchange and make decent money. Since there is a shortage of workers these days who understand the technology.
There is also mining but its very unpredictable. Also who knows when ETH will go to POS and make all POW miners out of work.
I don't believe in the whole Hodling culture, it is a profitable strategy since overall Crypto is growing and not everyone has time to day trade but I don't believe it's nearly as profitable to day trade. Obviously there's a huge learning curve when it comes to trading but you could say that about anything you're seriously getting into. Nobody ever achieved anything great by not working hard.
Thanks for the replies guys, still hunting out somewhere I can learn technical analysis, preferably with seasoned traders.