TRADING STRATEGY
Tis is because in investing/trading there is a risk limit that if you go over will doom you to failure. It’s a cliff and if you dance near the edge you WILL fall off and the loss is total.
Te key to investing/trading is to bet so your risks are as low as possible and your rewards are as fat as can be achieved at that level of risk.
Trying to get rich fast is a sure way to go broke quick.
So that is the initial entry point into this world: a conviction Bitcoin is going up and a lump of fiat money you can afford to lose.
The strategy
Te next step is to choose or
create your strategy.
You must be able to say: “my strategy is to xxxx…”
To an extent it doesn’t matter what that is, but you must have one. If it is not a great strategy you can fine tune it or change it, but just buying is not good enough.
If you don’t know why you got in, how will you know when to get out?
You will sell and the investment will have paid off, at least for your pooch.
Rest assured many buyers of Bitcoins will have a tale of woe to tell you instead at this point, whether the price is $1000 or $100,000 a coin.
So let’s get serious.
You think Bitcoin will go up and you have some money to stake. What are some serious or - at least
Trying to get rich fast is a sure way to go broke quick
Let me give you a very poor example: “My strategy is to buy Bitcoin and only sell when my poodle’s vet bills are too large to pay on my credit card.”
When that time comes you will be happy you held Bitcoin whether it went up or not.
- popular strategies? 1) Hodl
Hodl is a meme, which means ‘buy and hold.’ Some fast typing message board enthusiast said, “don’t trade Bitcoin just Hodl” and the idea stuck. Hodl they cry when the market crashes. Te idea fits into the other cryptocurrency meme:
“to the
moon.” Tis was coined by the Dogecoin community whose satirical cryptocoin actually took off and became worth hundreds of millions of dollars.
Te idea is that Bitcoin is going to hundreds of thousands of dollars a coin and you should just
buy and hold forever, or at least for many years. Tis is the Warren Buffett technique for getting rich in stocks. He identifies an amazing, but very long- term investment, buying and holding for perhaps decades. Te investment then does the rest.
To add to this idea, you BTFD - this is ‘buy the flaming dip.’ You buy more when it crashes to add to your stockpile.
At this point in time Hodl and BTFD FX TRADER MAGAZINE January - March 2018 21
FX
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