Inspiration from Rich dad poor dad Profit maximization in day trade verses long term investment.
My analyisis of crypto market from Rich dad poor dad prespectives of Profit maximization in day trade verses long term investment .
I have came across with crypto currency from my very close friend. It was a year and half years ago. He gave me some documents and presentation about Bitcoin. Then I make my own analysis and some goggling on Bitcoin, cryptocurrency, and blockchain. My background on three degrees on information systems, accounting and economics helped me to make a lot of research on optimization of block stock market and now block chain on cryptocurrency. Then I get a real confidence that my success story is started from a worm ground level. Then I make a lot of research on day trading and long term investments. Which formula to follow was my concern but no dought was on me that I will be part of this early revolution on democratization of currency. Currency was not marketed by individuals without the influence of government and mega companies. Eventually I follow a child growth style. I learn from big names of the industry like a child then when I got matured I design and come up with my own style and formula.
Today I am willing to share my own style which makes a success in trial and confirmed from practice between a day trading and long term investment. Before I disclose the formula I want to mention the characteristics of the two scenarios.
“Do I need one hundred USD everyday or hundred thousand five years letter?”
DAY TRADING IN CRYPTOCURENCY
There is a much higher chance that you lose money trying to day trade crypto coin than just holding for the long term investment till you master the day trading algorithms. You don’t make 100 dollars hard earned money back. But if you master this technique you will get thousands in return. Day trading is all about switching between coins on hourly bases if extended 12 to 24 hours. In a whole day you may switch back and fourth on one coin for a variable times. Sometimes a pattern of buying time will be repeated six to seven times. So follow-up and mastering is the key.
I have limited balance put on my day trade portfolio. I never go more than 25% from my all crypto coin holdings.
I will always look repeated scenarios on graphs. And for complicated graphical interpretation of triangle analysis I will always look for different polarized explanations. Then I make my own my analysis to day trade.
Identify coins to be day traded is a mandatory thing. Some coins are not day traded they are good for long-term investments. They don’t have a specific repeated or surprise pattern to be cached in day trading. So identification is mandatory here. Never never never buy a long-term coin for day trading you may lose all your hard earned money.
Once you identify a day traded coin and look for patterns be careful to start trading when you see an upward movement has began a green light. Wait till it goes down deep then you can buy when it starts to show the green upward light. But needs to be immediately.
Don’t be overexcited about too much to be gained in day trading you have a chance of flipping many times so set your minimum and sell it when your trash hole of minimum is on. But wait a little if it goes in green more.
Reinvest the profit for the next flip. What I just meant is if your initial investment is 500 usd and makes a profit of 40 in one trading then reinvests it at 540 for the next flip. Because you will be in a positive mastering standpoint for the coin behavior.
Once you are done for the day of day trade, invest your part of profit for long term coins. Let’s say you make this transaction.
1st trade flip you invest 500 usd and sold it at 570 usd
2nd trade flip you will invest 570 and sold at 620 usd
3rd trade flip you invest 620 and lose 10 dollars and sold it for 610.
4th trade flip you invest 610 and sold it for 660.
This whole transaction in a 24 hours time.
What i will do is keep the initial 500 usd to be used for day trading and the profit of the day 160 usd for long term or medium term coin investment.
“But day trading is all about mental strength. Don't panic sell, don't get too greedy (i suck at this) and don’t chase” saying from some daytrading researcher.
LONG TO MEDIUM TERM INVESTMENT
“Big dads way: have an income on daily bases
Make a profit out of your daily trading/activity
Buy 4 houses.
Then sell the four houses and buy a hotel”
I hope you have read Robert Keyiosakies poor dad rich dad book. It was quiet an inspirational book for me. The proverb is not directly taken from the book word by word but the inspiration and the idea is taken.
So what is the meaning of daily bases income, 4 houses and a hotel.
As to me the first definition is quiet simple it make or ought to make a daily base profit on day trading of coin. Then accumulate your profit properly for a medium term investment which is 4 houses and in cryptocurrency language there are coins which have a relatively a stable positive increase than other coins. These coins entertain a major downward decrease may be in 6 months. So invest in these coins at least in 4 of them. These coins will give you quiet a good amount of return lets say may be 70 to 90 % increase but when compared to daytraded coin profit ratio in similar time frame it seems small.
Let me ask you a question here would you put your whole investment in a very well known volatile environment. Or you prefer a relatively stable but positively inclined portfolio. I personally prefer the second one. So i put almost 40 to 50 % of my coins in these types of coins/tokens
“ Who saves cruiser ship passengers?
It is small boats "
But the big pie is not yet cooked. The cooking time is relatively longer time but it is delicious. It is time to sell the 4 houses just because they are "four". Then to buy some long term investment which is a hotel. In our case a long-term crypto coin. A coin which do have a good reputation, service, future, technology, volume, endorsement. At these stage i don care about daily increase or decrease all i care is political or government well relation to these industry. I prefer bitcoin, steem, litcoin and may be more. Think about it after ten years for the value of bitcoin and steem?
Answered is a big 4 star hotel for a couple of coins invested in small amount today.
MY FORMULA IN SHORT
- I make a daily sales profit
- Then i invest the profit in some what advantageous coins which i can wait for their return for a week or months
- Then when i sold this medium range coins and directly put them for a long term investment portfolio like bitcoin.
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