Selling At Dips And Buying Immediately When Rising?

[jerry0]

Hey all got a question and like to know your opinion on this.


Let say you bought a coin that was 5 dollars and bought say 1000 shares a while back.  So you spent around 5000 usd.  Now let say the coin goes up to say 12 dollars.  It went as high as say 15 dollars.  But you notice that the price has been dropping a long with other altcoins.  Let say you notice it go down to 12 dollars and it continues to go down.  Say 11 and then 10 etc.  You keep watching the prices and all it does is go down.  Wouldn't a good strategy be sell a certain amount of this coin at the dip and then buy it back the moment you start noticing prices go back up?


Example you decide to sell say 200 shares of it for 10 dollars at 2000 dollars.  Now the big question is this.  When you sell it for btc... since majority of altcoins cannot be traded against usd or usdt... wouldn't the smart idea be to sell the btc immediately for usdt?  That way no matter what happens with btc, you dont have to take any fluctuations and only look at that altcoin price?  For example you sell the 2k worth of btc for around 1995 usdt?  I used the 0.25 percent bittrex rate.  Now you have 1995 usdt or so.  Now let say the altcoin drops to 8 dollars.  Now the moment you notice it rise to say 8.50... you then decide to buy back that altcoin.  Here you would need to buy the btc with the 1995 usdt you have.  Then immediately buy back the altcoin.  The thing though is say the price is 8.50.  So with your 1995 usdt, you could buy around 233 shares of that altcoin back.  So you made your initial profit of selling it at 10 when buying at 5 and with 200 shares, you made around 1000 - 5 dollar free = 995 dollar profit.  And here... you now have 233 shares as oppose to the 200 shares you just sold.


Im curious are there lot of people that do this?  And if so, do people sell a small portion, medium portion or close to everything when they do something like this?  My thoughts are hey you could sell say 200 shares when its dipping... then use the money you sold it at to buy back more than 200 shares when the prices go back up.


Also if you do this, would selling the btc for usdt be a must or not?  Would that be recommended or not?  Because the issue is if you don't, the issue is say the altcoin goes back up in price.  But now the issue is btc went down.  Thus say when altcoin drops to 8 after you sell it at 10... then it goes back up to 8.50... you want to buy back those altcoins you just sold but because btc went down a lot... you might only get back say 150 shares of the altcoin.  So im curious how do traders handle this.  Do they sell the btc for USDT immediately after they sell the altcoin?  Or do they not?  The thing is if you are trading on say coinbase/gdax, even though i never did this, well the balance is in usd so basically you are going to have a usd balance when buying/trading btc, eth and litecoin.  But with altcoins, its much different mainly because you cannot trade it against usd or usdt.


So if someone does this, would you recommend selling the btc from the altcoin sale immediately for usdt immediately or not?  Then when you are ready to buy back the altcoin at a lower price, you buy btc immediately with usdt... then buy the altcoin immediately with usdt.  Thus you dont have to think about the btc price fluctuations.  And for daytraders, do they usually do this with a portion of what they buy they plan to sell later or they do the whole amount?

[1715122031]

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[1715122031]

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[DuaLipa]

This is not applicable in the practical side of the trading. I real all, I also have questions about some parts.

Selling at dips doesn't mean anything for me. Selling should be at peak points, not in the dips. In the dips, you need to buy more to expand your weight on the market.

[Nubitcoinerr]

You have to have a system to win and fees matter a lot

[okala]

I think when you buy your coins should be the most important aspect of your bitcoin or cryptocurrency trading. If you buy a coins at $10 and after a little upward trend then price move back to $10 and fell down ward below your purchasing price it means you buy at the wrong time and you should did not have mush knowllege on how cryptocurrency work. If you sell below your purchasing price who give you hope that it will rise again?

[cynical]

its all about timing.
in the op example above the optimum sell point has been missed by not selling at 15$.
selling is a risky business if you plan to continue supporting the token in question.
selling at 15$ or 10$ does not mean the value will drop aubstantially below that, what it the price rises sharply after selling?
You have to buy back in at a higher price meaning you loose out.

[exstasie]

So if someone does this, would you recommend selling the btc from the altcoin sale immediately for usdt immediately or not?  Then when you are ready to buy back the altcoin at a lower price, you buy btc immediately with usdt... then buy the altcoin immediately with usdt.

You literally asked this same question in another thread. Why do you expect a different answer this time? If you're so intent on selling your altcoins and holding USDT then just do it. Why do you keep asking people whether that's the right thing to do? Nobody is here to trade for you. USDT is for hedging dollar value. Nobody can tell you how do hedge your money, especially when it seems like you don't like to listen to sensible advice.

Again, I'm trying to impart my experience here. Your stated strategy will probably end up losing lots of coins repeatedly because of how thin altcoin markets are (and also how thin BTC/USDT is). You're likely to sell after the panic has ensued and you'll never get your altcoin entries back. Panic selling into two thin markets after the dip is already happening? Good luck not losing money. It's a horrible strategy. If you don't know how to baghold altcoins and you're constantly concerned about hedging their USD value, you will lose lots of money trading them.
 

Thus you dont have to think about the btc price fluctuations. 

Anyone who trades altcoins and thinks they don't need to consider BTC price fluctuations is a losing trader. It's that simple.

[figmentofmyass]

Wouldn't a good strategy be sell a certain amount of this coin at the dip and then buy it back the moment you start noticing prices go back up?

i prefer to buy the dip itself, with bids on the order book (alt/BTC markets). crashes tend to be fast, with long wicks. you want to catch those wicks, getting your bids filled near the bottom. if you wait until you notice the price going back up, you're probably buying back 50-100% higher. this is typical of altcoin panic sellers: you market sell the bottom and then market buy your coins back much higher. this is why trading altcoins is so profitable. we depend on new traders panicking when there are no bids to dump into.

Also if you do this, would selling the btc for usdt be a must or not?  Would that be recommended or not?

if you actually care about the USD price, then sure. but going along with what i said above, this almost guarantees that you will miss the dip and buy back significantly higher. part of this is about fighting human psychology. waiting until after the alt/BTC price is trending upwards again generally means missing the biggest opportunities.

[creeps]

could be done but its hard to estimate when it will stop dipping or knowing when its about to rise

Precisely, its really hard to predict the market even if you are using some indicators. But buying at low is a good strategy and always sell higher than the buying price. Cryptocurrency is very volatile so you have to be more careful when entering the market.