It’s been a while since I have written something for the readers out there. Well, there is a reason for that.
I’m currently facing some losses on my investments and I was in full focus mode to recover from the losses and to gain profit
I thought I should give an insight on what mistakes I did, what could I have done better and how I started to recover from the losses.
So without any further ado, let’s get straight into one of the best lessons I’ve learned from short term cryptocurrency trading losses.
What have I done initially?
If you are a regular reader of the blog, you already know that I trade cryptocurrency for short term profits.
So, my goal is to buy cryptocurrencies and sell them for profit as fast as I can. I have mentioned in the short term profits article that you should follow “low market cap coins”.
I’ve exactly done the same. I brought 1.11 QTUM and 11.52 HIVE coins. I decided to go with them, since their prices went down compared to their initial price.
I was waiting for the right time to sell them for profit. Here, comes the shock
The coins went down more in price. I thought I should give them some more time. Well, it didn’t help much.
Mistakes that brought me to losses
Everyone do mistakes in their life. Come on, we are humans. We should make mistakes to learn something.
I’ve made a miss prediction on QTUM and HIVE coins growth. But, the loss didn’t stop me. I’ve decided to invest more and brought Bitcoin Cash ABC (BHCABC ).
I’ve loaded INR. 1400 into my WazirX account and brought 0.079 BCHABC. But, BCHABC is a high market cap coin. Hence, it stays somewhere stable in terms of price. I brought the coin and was waiting for the price to grow up. Unfortunately, it didn’t.
Why I brought BCHABC?
- Sometimes, short term cryptocurrency trading not only means focusing on low market cap coins. You should also focus on high market cap coins whose price went down recently.
- High market cap coins recover from price drops faster than low market cap coins. Let’s say, You brought BTC for $9k. It will reach $9.2k in no time. Hence, it is a golden deal for short term traders.
What have I done to recover from losses?
Here comes my biggest decision to recover from losses so far. I’ve decided to sell all my existing coins for loss and start a fresh investment.
I’ve sold QTUM and BCHABC using WazirX. I had some DASH coin lying around in my wallet and sold that too for a minor loss. I haven’t sold HIVE coin yet. I think HIVE will reach a good price soon.
I brought LTC, also called as litecoin. Litecoin has gone down in terms of price recently.
It is expected to grow in price by the end of 2020. I don’t think, I can hold LTC for that long since I’m a short term trader.
Currently, LTC price is slowly climbing. I brought LTC for approx. $41.12 and now it is stable at $42.1.
My prediction is that LTC is going to climb around $50 soon. If it does, I will recover from my losses. If it doesn’t, I will wait 😛
What have I learned?
Simple, Cryptocurrency trading is not always earn profit scheme. Your decisions and predictions matter a lot in your profits and losses.
The main lesson I learned as a short term trader is that, I should focus on high market cap coins too.
Which coins are you holding currently ? Are you a short term trader or long term investor?
Let me know in the comments