Maybe you just look down on those who attempt to engage in self-improvement BTC trading practices? I try to share tips with folks, and yeah, I understand that it can be a bit overwhelming to attempt to employ something like I do, or some variation or even some variation that you attempt to tailor to your own situation.
What do you do?
Are you going to sell now at 8.000?
Did you bought at 5800 ?
I thought that most peeps here understand my methodology.
In brief, largely I am an incrementalist. I buy on the way down, and I also dollar cost average buy, and I sell a small amount of the way up. I sell between about 1% and 1.5% of my bitcoin stash for every 10% that the BTC price goes up, and I use a decent amount of the sales proceeds to buy back, in the event that the BTC price goes down.
I have been engaged in such incrementalism for almost 3 years. In other words, before October 2015, I was largely accumulating and dollar cost average buying... I also was establishing my initial BTC stake in 2014, and in a kind of maintenance during 2015, so if I ever sold any BTC for any reason, I would replace such BTC (and a bit more) quite quickly thereafter.
Currently, largely, I do not really change my practice by BIG price moves or make any BIG moves of my own.. so I am constantly selling on the way up and constantly buying as the price goes... I do tend to play around with the increments and the amounts based on how the BTC price is moving, but the amount that I authorize to buy or to sell is based on ongoing similar percentages that I authorize for myself and only tweak in small ways. Regarding the actual price points of $8,000 and $5,800, yes I was buying all the way down. Actually, I sold all the way up to $19666 and then I bought all the way back down and was largely prepared to keep buying , even if BTC prices were to go below $1k (which surely seems unlikely, currently). Largely also I had been selling all the way up through the $6000s until reaching our $8000 of today.. so if the price goes above $8k I will continue to sell, and if the price goes below $7700 or something like that I will resume buying..
Thanks for your time writing this to me.
I don't mind sharing because I consider these kinds of matters to have potential for brainstorming for me to consider and to reconsider my strategy, along with others being able to employ the strategies or to tailor them for themselves.
That's very interesting. I am too attached to my btc to sell. However, 1-1.5% as you said can be done..
I think that in 2014, and perhaps part of 2015, I felt the same way, especially while I was in the largely BTC accumulating stage. Others have expressed such selling reservations, especially when they consider that they are in the earlier stages of building their position.
Largely I got my framework thinking from
Rpietila's SSS thread.
He advocated a kind of strict planning ahead to rake in profits at about 10% for every 10x increase in BTC price. Of course, he suggested that you could tailor the increments, but he also suggested taking those profits off of the table.
Accordingly, not only did I decrease the increments, I also incorporated a buying back plan, too. So, yeah if you are finding that you gambling too much, then you can figure out some middle ground that is somewhere between my approach and Rpietila's.
It requires some time and effort to work also.
I think that it takes time and effort to initially plan it, set it up and to get used to practicing it, and accordingly, I would recommend practicing with smaller amounts and smaller increments and then working your way up.
Even today, I tweak my increments around, depending on how much time I have available (and want to spend on it) and my tentative projections about how fast and far BTC's price is going to move. In other words, I would suggest practicing a bit to get used to it, and if you do not want to spend a lot of time on it, then you set it up for BIGGER price swings, and set it up in such a way that you become somewhat emotionally neutral about the actual movement of the price direction.
I did something similar to that before, however I sold and bought back about 20% of my stack in 2 operations and got very few gains, which were not worth the effort and involved high risk.
Personally, I don't really consider the matter in terms of gains, but instead of in terms of creating a kind of insurance for myself and also a kind of comfort level that seems to cause me to be less nervous about the BTC price direction because I feel covered for either price direction.
How much % gains are you having? 1-1.5% sells buys are a very good idea I liked it.
Like I just mentioned, I don't get caught up with measuring short term gains, especially on one or two trades; however, I have some spreadsheets that can show (in a price projection manner) that I am in the process of accumulating BTC through this process, and I end up having both, more cash and more BTC... .at various price points, but I will also manage the percentage of dollars or BTC that I have in reserve because I project ahead, and I do not ever want to run out of dollars to buy BTC in the even the BTC price goes down and it also overshoots in its going down (which BTC does have an ongoing tendency to overshoot expectations both to the downside and to the upside). I also don't want to run out of BTC to sell on the way up, so I tweak here and there my projections about how many BTC I am selling on the way up, and really in recent times, I tend to kind of stay within a range of having plenty of BTC, even though I continue to sell it on the way up.. .so for example my range of BTC might be as high as 98% when the BTC price goes down below expectations and even go as low as 87% or 88% when the price shoots up. Of course, I can tweak the amount of dollars or BTC that I am holding in order to attempt to maintain a certain quantity or even to anticipate a price reversal (but so far, these tend to be tweaks for me, rather than large moves).
Even though I am not breaking down actual numbers of how much fiat and/or BTC I am accumulating on each end, I know that my system provides considerable satisfaction for me in terms of stacking up BTC and dollars up and down the spectrum of BTC price possibilities and it also gives me a sense of insurance and security to have those dollars and BTC stacked up on each side and I can tell by looking at my accumulation that my reserves grow on each end to a level that remains satisfying and worth while for me and the amount of time that I put into it.
I frequently say to people that one of the most guaranteed thing about bitcoin (rather than price direction) is that it is going to be volatile, both up and down, and what I do intends to profit from some BTC price dynamic that seems as close to guaranteed as anything can be in cryptolandia.
One final point, is that I do have a kind of ingrained presumption that in the long term BTC prices are going to go up, rather than going to zero... so my system would likely not be profitable (at least not as much) if BTC prices go to zero (even though I could pull out a certain amount of principle that I refuse to trade, perhaps?).
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