Tripto's Trading Log, Entry #6
Intro:
I'm not a full-time trader, I just do it for fun on the side of what I call my "real" investments which are far more long-term plays in stocks and crypto.
Trading is a hobby of mine. It's proven to be profitable and definitely viable. I love doing it but I know that short-term trading like this is both risky and unpredictable!! That's why I don't rely on it for my main income stream.
I look at trading as being something for fun and profit (with the right mindset) - if you're as unemotional as possible and always look to take profits early and then take profits completely off the table, then I think long-term success is definitely possible.
I've trade for years on both the traditional stock market as well as the options market and now the crypto markets. Trading is high risk/high reward. It's similar to poker bankrolling if you're familiar with that practice/skill.
It's a skill to know how to manage your funds. It's a skill to be able to shift money in and out of the game and then take profits off the table. Seek to cultivate that skill, and I think you can see massive upside over the long-term. Stay curious and stay cautious!
Tripto Trade Log Entry 6:
This trade presents a great opportunity to talk about the "dark side" of trading that many people don't talk about.
Trading is risky. There's no question in that. You always run the risk of being wrong and you always run the risk that you will make a decision at a time when opportunity is not on your side.
I've played this buy range for the past 2 weeks with great success, but then we had a breakdown of the ETH price by about 15% (it's leveled back out to about -10% now)
That means that I have to hold on to this losing position for a lot longer than I'd like to. Normally I'd like to be in and out of a position within a 1-3 days, but this one may last a lot longer as I wait for the ETH price to recover.
Not every trade will be perfect and I'm glad that posting these logs regularly will give me the opportunity to show the good and the ugly when it comes to trading.
Always be aware of the downside!
Opening Position (10/12/18)
- Underlying: ETH
- Buy Price: 221.06
- Expected Sell Price: $225.48
- Actual Sell Price: $225.48
- Expected Profit: ~2%
- Actual Profit = 2%
The sell order is already set for 225.48, it may take a while for us to recover from such a dramatic fall (about 10%) from our buy range. It's unfortunate, but again, this is a part of trading - it's the dark side of trading that many people don't talk about. There's always a risk that you could be wrong and could position yourself with a badly timed purchase!
Disclaimer:
Nothing in this post or in any other post I write about my own trading/investing should be read as financial advice. All information in this post is simply for entertainment purposes only.