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January 08, 2018, 01:30:26 AM |
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Buying after ATH
I see a lot of people trying to buy on dips way too soon after a coin price has reached an all time high (ATH) and it's a full on facepalm moment. Maybe you've noticed these same patterns.
After a coin comes down off an ATH, I will not look at the coin again for at least 32 hours, and usually I will not buy back in until at least 48 hours has past the ATH mark, unless some big news is coming. See attached. I looked at a few coins with recent ATH's to show you the timing of rebuying after an ATH. This pattern seems to go for most coins that reach ATHs. Ignore the pump and dumps.
Riding Waves
I also like to ride the waves. After an ATH, I look for a 1.50 - 2 day pattern of small but consistent waves. If I see at least that amount of time of relatively stable, steady, but small movements in price, and no bad news expected for project, then I will start riding the waves. I buy back in on one of the dips and wait for a very small increase in price and then sell. I do this up to 2x between major spikes to build my coin count. I've been able to increase my coin count by as little as 100 on each trade, or as much as 3000+, between major spikes with this method. But after hitting at least 2 wave peaks, I rarely go for a third as I find it to be pushing my luck. Hitting two wave peaks seems to the be sweet spot.
I'm should add, although I have a few long term holds (3-6 months), I'm a day trader and don't really hold any coin longer than 30 days (outside a few long term holds), similar to HonestIM, especially after an ATH.
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