You 2 assholes smh
He came to the right place
I wouldn't mind a reminder from the J people, if they don't mind, check I'm not losing it.
Hello.
Some of you have mentioned making profits by trading. I'm also making some, although I lack a strategy.
I have a stash of BTC I won't touch, then I have say 1 BTC and 7000$ to play with. I'm fine if at any one point that play money is all cash or all BTC, the goal being to grow it overall, of course.
What should I do ?
I was not going to say anything, but since I got invited... oh gosh V8 what did you do to me... .. I feel as if this might be a BIG waste of time...
A factor that should be considered would be how much time do you want to spend trading back and forth.. jbreher has a way more aggressive approach than me, and tighter increments and spreads too, but let me just disclose how I would frame the issue and then jbreher can chime in, if he believes that there might be some additional utility or perspective from his viewpoint.
I believe that you need to attempt to structure your buys and sells to a point that you are NOT very likely to run out of either fiat or BTC or if the BTC price goes shooting beyond a place from your perspective (an attempt at a fair estimation) that you are going to be willing to inject more dollars or BTC into the system (or just to stop your trading if it goes past that point).
For example, if you believe that the worst case scenario is that BTC goes to $3,500 or you would be willing to inject more cash if the BTC price were to go below $3,500, then you would then set up your BTC buy orders incrementally all the way down from here (let's say about $6,300) to $3,500 to allocate all of the $7k that you have authorized.
You can set up your BTC buy orders at increments of about every $100 if you want to be somewhat aggressive and you want your buy orders to execute a lot more frequently (which can be good for practice and learning too) or you can spread out your buy orders more, such as every $500 if you do not want them to execute as frequently (you won't get as much practice, but still might help to achieve your objective of buying (or trading) bigger swings).
You can also structure your BTC buys increments in terms of percentage change in the price, but that tends to be more difficult to keep track of, even though it is more scientifically accurate, and you could even create an excel spreadsheet that would automatically calculate for you, too... if you want to attempt to be more precise about it.
So, for example, if you decide to go somewhere in the middle of the road, such as having BTC buy orders every $250, then 13 BTC buy orders would be between about $3,500 and $6,300, then your Buy orders would be about $538.46 each.
If a buy order executes, then you add a sell order to the sell side that you had already set up and at whatever increments that you had chosen to sell. You can choose to take profits in dollars or to take profits in BTC, and of course, since a lot of us might lean towards wanting to accumulate BTC, then you would try to structure your orders in such a way that they are stacking sats rather than dollars which largely means that when you generate dollars through a sale you would end up using all that generated BTC for any buys that you set up. Of course, in the end, we all expect the BTC price to go up, so you are going to end up selling that whole BTC anyhow... so there is that seemingly inevitable dynamic.
Regarding the BTC sell orders, you set them up similar to your buy orders and you try to figure out how far you expect the BTC price to go up before you plan to inject more BTC into your system for the purpose of selling them and to keep your system going. Maybe you don't want to dip into any BTC until the BTC price goes above $17,500 so you would be willing to incrementally sell the whole BTC that you have so far allocated all the way up to $17,500. Maybe you start at these current BTC prices with BTC sell orders every $250, and then when the BTC prices reach above $8k they become every $300 and then when they are above $10k they are every $350, and you continue to more or less increase the increments based on an approximate percentage that you are willing to structure into the sales.
Therefore, you calculate how many BTC orders that you are going to end up selling all the way up to your top price point, and you can divide it or even put such formula into an excel spreadsheet if you want to have an accurate assessment regarding how far 1BTC should go up the price scale and if it works for your requirements.
Likely you would be selling an amount in terms of dollars so that the amount of BTC becomes somewhat smaller as the BTC price goes up.. so maybe the BTC sell orders start out executing at around $7,400 at around .05 BTC ($370) but then by the time the BTC price gets to $17,500 the sell amounts are only in a .025BTC ($437.50) territory.
Of course, you can tweak around your buy/sell amounts, your increments and the spread between buy and sell orders including making sure that your spread is enough to be profitable including the calculation of any fees that might apply.
The smaller the spread between buy and sell orders, the more practice that you get and the more that you can learn, but the lower your profits per buy/sell. Practice does make these systems sink in more, including your being able to tweak them more specifically to your own specifics rather than someone like me providing a framework... and my goals in employing the trading strategy might be a little different than yours, even if some of our objectives of making money and feeling comfortable and secure might be similar.
I probably left some things out.. but these ideas should at least get you started, and really you have to do a lot of the structuring work yourself, anyhow.. including thinking about your increments, your spreads and how far you are willing to allow the BTC price to go in either direction before you either stop or inject more value into such system. Furthermore, actual structuring and and attempting to tailor the whole thing is part of the learning process including figuring out ways to make your system completely your own in such a way that you ensure that your system is profitable in the direction that you are striving to achieve... while accounting for your personal financial and personality specifics, including your cashflow, your other investments, your views of bitcoin as compared with other assets, your timeline, your risk tolerance and how much time, skills and abilities to learn you have in order to manage your portfolio and to tweak it from time to time including tweaking it in order to account for how your own circumstances might have changed with the passage of time.
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