The markets have been really busy lately and I’ve been trading so intensively these last few weeks to make hay while the sun shines.
I was also in a hurry to meet my target to treble my trading capital by end of March.
Digital Currency Trading Results At End March 2017
Right now I feel somewhat knackered. Sleeping patterns also a bit out of sync. Feels like the it’s the day after a hurricane. One trader said he has been trading 3 days almost non stop with no sleep other than short naps and is now going to bed.
I’ve even been dreaming of price charts in my sleep – apparently it happens to a lot of traders.
But the good news is that I’ve managed to meet my target of trebling my trading capital by end of March 2017. Overran by a few days, but this last weekend saw some great price action opportunities on the digital currency markets which enabled me to make the final sprint.
300% increase in value since late January. Could maybe have done more if Bitcoin hadn’t crashed – though it’s since recovering fast.
Also last Saturday I started margin trading for the first time ever. Which meant extra initial stress. The first few hours I was watching over my margin portfolio account practically every minute. which is a bit daft. A watched pot never boils.
The trick is once you have selected your trading positions to try and relax to some extent and let the market do its work – or not as the case may be.
I suppose people trading shares or Forex on the ordinary markets for the first time would be scared, but I have no problems with ordinary trading every day. So it’s just a question of relaxing and getting used to it.
But all went ok and I’ve since calmed down. The results were not fantastic but at least I was in profit.
It’s taken me three months to risk starting to margin trade. You can read all the theory about margin trading, but there comes a time when you just have to jump in and test the water. It’s basically fairly simple, the important thing is to make sure you set affordable capital ratios and that you can afford to maintain your margin deposit cover if the market turns negative.
Had some good values, one especially which appreciated fast, called Ripple – its a kind of digital interbank token which the banks are interested as a replacement/addition to the SWIFT payments system. Bank of Japan indicated they are interested and this gave the Ripple price a boost.
But there were also a few snails encountered along the way, both of which I had to axe as they were holding things up. All the time you are stuck with a value which isn’t moving you are wasting time. You are paying relatively high effective APR interest rates for the margin credit and your capital could be usefully employed in another position which is on the up and up.
I’m being very cautious, setting very conservative risk ratios. A seasoned trader would probably laugh at my over caution, but it’s better than wading in and making a total hash. I’m only using 5-10% of my trading capital for margin trading.
And I’m only trading with 2.5 to 3.5 times margin deposit, according to the exchange. City/Wall St traders trade with x100 or more, but they tend to use the bank’s money and the banks have bigger pockets. If you try to trade with those sort of margins without the capital reserves to back it up you have a high chance of losing the lot. Your motto with margin trading should be Get Rich Slowly.
I’ve since doubled my margin trading cap and am now margin trading from now on more or less permanently. Doesn’t take long for me to get accustomed.
My Future Strategy for Digital Currency Trading
So where do we go from here?
I’m continuing to be invested in digital currencies other than Bitcoin.
I’m concentrating on this business for now as its very lucrative. It’s a boom sector right now and I am in the right place at the right time.
Target one for April is to double trading capital by end April.
Target two is to treble trading capital by end April.
Some Important Points On Trading in Cryptos
To achieve these goals I also have to margin trade, applying the highest safest possible margin trading ratios.
Price action trading is lucrative – but avoid long day trading sessions. Always set high staggered stop-limits to catch sudden whale (high volume trader) activity.
Set regular trading sessions. Apply a once every 6 hours around the clock trading portfolio check.
Don’t chase after whales. I’ve tried it a few times and it is very high risk and chances of success are low and I regretted it. You just become whale fodder. Use your high staggered stop limits to catch the whales. That works.
Get informed about what is happening on the ICO scene. There are some lucrative floats out there, but you have to separate the wheat from the chaff.
Maintain position sizes and trading lot sizes for both margin and ordinary trading. These are based on your overall trading cap size. As this grows, so do your position and trading lot sizes.
Don’t double trade values in margin and ordinary accounts. To help reduce risk, don’t margin trade in the same values that you are ordinary trading in.
Try not to trade on hourly or shorter charts. Use these to determine entry and exit points, but concentrate on weekly and monthly trends.
Set stop limits for everything. But don’t set lower stop-loss limits as a rule, only higher ie in profit, stop-limits. Cryptos are so damn volatile that setting stop losses just tends to mean you get thrown off the bus which then takes off again up the road to newer highs with you no longer on board.
Axe positions which are consistently tiddling away value. Don’t tolerate a dripping tap. It’s very annoying. Take action and get rid of it.
Less price chart trading and more fundamental based trading for the longer term. In cryptocurrency terms this means 1-3 months and more.
Do more intensive research into the blockchain sector. Find out what is going on and what actions and announcements are coming up which will affect the market. Also, don’t forget government actions and regulation as well.