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Author Topic: The HODL strategy is not actual  (Read 4069 times)
Marrionbitcoin
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May 13, 2018, 02:01:42 PM
 #361

This morning I saw an article where a guy made a simple calculation through Google trends about HODL strategy, and it showed that call to HODL used less and less from February of 2018. Popularity of word Bitcoin and crypto currency is also falling down.
Why it is so? Do not people believe in Bitcoin and it's bright future anymore?
No matter on such tend I am going to HODL my founds till bitcoin will not come back to 20k$ Grin

Actually, Bitcoin has its own stages in trading. Sometimes, the price goes up or down that we cannot predict. For me, Holding Bitcoin is still good but you really need to be updated because the price might go down drastically. So we need to keep ourselves updated about what's happening in Bitcoin world.
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May 14, 2018, 06:10:35 PM
 #362

The benefit of holding over long periods is that it will capture the general trend without being concerned with shorter term variance and day-to-day price fluctuations. The more you trade in and out, the more variance you expose yourself to in the day-to-day price movements and the medium term trends. The longer your time frame for holding, the smoother those price movements get, and you get the average of whatever the long term trend is. If you were an early adopter, the long term trend has been hugely positive, even though at any point there are constant small and medium (and even large) crashes. If you were trading daily, you might increase your gains by correctly guessing what way the market will move and catching it up and down, but far more likely you're inefficiently capturing the long term average upward movement by being out of the market for some of those times or guessing wrong some of the time.

If you use just a small percentage of your capital (no more than 3-5%) for day trading, you are likely to fare a lot better than by simple holding even if the long-term trend is in your favor (which is not set in stone, mind you). All financial markets are famous for their extreme volatility (obviously, that depends on your point of reference), so if you just buy and sell at a certain interval (like 2-3% of price change), you will hit it regardless of your trading skills. In this fashion, there is no need for guessing as you can stick to a more direct approach.

If the price breaks out of your trading range, you can either switch to a holding mode and let the profits grow in the usual way, thus getting back where you would be with no day trading involved, or start the cycle anew by buying back what you have sold on the way up (some part of that amount).

This presupposes you can efficiently move in and out of markets and call every reversal in momentum correctly, which isn't possible. If anyone could do this, it would break the market and there would be consistent billionaires minted from this approach. The fact is this this can't be reliably done. Even the best hedge funds that employ the smartest PhD analysts and deploy the most sophisticated modeling algorithms lose to something as basic as the S&P over long stretches of time. The longer the time horizon, the more likely they are to lose as the more moves you make, the greater the variance you expose yourself to. Every time you're wrong about where the market is going and have to adjust your approach, you've lost efficiency you would have gained by just holding.

Obviously, you didn't read what I wrote. Or read but didn't understand. You don't need to move in and out of the market using some obscure strategy or plan, sophisticated or not. Forget about it. You just sell and buy (but don't forget to sell at a profit, of course), and you will ride the wave sooner or later on its own, purely statistically. Ultimately, it all comes down to buying low and selling high, no matter how sophisticated or complex your approach to trading is. But in this very case you use the simplest possible strategy, if that could be called strategy at all. You just place your sell order a few %% higher than the price you bought at, then again add a few %% for the next sell order, and so on, selling in small amounts. You may say that it is stupid and unsophisticated but it works as long as it works for long-term holding.

The only caveat is that you should keep a keen eye on how much you allocate for day trading. If you allocate too much, then you will miss real growth (if it ever comes about). When you run out of the allocated capital, you repeat the procedure by buying up what you have sold at current prices and then proceed to sell in fractions again (though not necessarily exactly the same amount).

Do you for some reason not understand that "buy" means move into the market and "sell" means move out of the market? If you don't understand such a basic concept, you probably should feel self-conscious about the sophistication of the advice you're hocking.

Just to recap here, every time you buy and sell bitcoin, you're moving in and out of the market. Every move you make in a market opens you up to inefficiency, which you're catching on both sides (up and down, IN and OUT) every time you're not perfectly calling a peak or valley. There are people who tried to beat the buy and hold mentality and they have invariably failed. Warren Buffet famously challenged any hedge fund to outperform the S&P 500 over a ten year period in a million dollar bet, and only one hedge fund trader was confident enough to take the bet. He lost by a landslide, because statistically speaking, you cannot outperform the market over long periods of time by actively trading, and Warren Buffet knew this and preyed on the ignorance of people who didn't. The steep decline in the number of actively managed hedge funds over the last 20 years is due to the fact that investors are learning this now too on a large scale. Those very few who do outperform the overall market in the short term are what statisticians would call lucky, and they revert to the mean before too long. The fact that you're losing efficiency by actively trading is supported by the fact that nobody can do it over the long term.

lythanhbinh
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May 14, 2018, 06:15:28 PM
 #363

Through the HODL strategy is how i made serious money (at least for me). When I tried day trade I also made some profit in general, but not comparable and too many stress and fees around the process.

Just HODL it.
PancherBitCoin
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May 14, 2018, 06:18:14 PM
 #364

Through the HODL strategy is how i made serious money (at least for me). When I tried day trade I also made some profit in general, but not comparable and too many stress and fees around the process.

Just HODL it.
Of course, if you will about the situation when in 2016 was to invest in Bitcoin at a level of $ 500, then even at current prices, this is a huge condition. You can imagine how much people earned from the investment in 2016, when they sold in 2017 for $ 20,000.
Hell-raiser
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May 14, 2018, 07:18:16 PM
 #365

Just to recap here, every time you buy and sell bitcoin, you're moving in and out of the market. Every move you make in a market opens you up to inefficiency, which you're catching on both sides (up and down, IN and OUT) every time you're not perfectly calling a peak or valley. There are people who tried to beat the buy and hold mentality and they have invariably failed. Warren Buffet famously challenged any hedge fund to outperform the S&P 500 over a ten year period in a million dollar bet, and only one hedge fund trader was confident enough to take the bet. He lost by a landslide, because statistically speaking, you cannot outperform the market over long periods of time by actively trading, and Warren Buffet knew this and preyed on the ignorance of people who didn't. The steep decline in the number of actively managed hedge funds over the last 20 years is due to the fact that investors are learning this now too on a large scale. Those very few who do outperform the overall market in the short term are what statisticians would call lucky, and they revert to the mean before too long. The fact that you're losing efficiency by actively trading is supported by the fact that nobody can do it over the long term.

Could you please address my point specifically? You talk in vague terms which are not applicable to what I'm talking about. To repeat, I'm not talking about moving your whole capital in and out of the market. Did I really forget to mention this in my post? So let's reiterate, what exactly do you disagree with? For the record, Warren Buffett was talking about investments in real companies and businesses, so should I remind you what he thinks about Bitcoin? It seems to be the right place and the right time. If Bitcoin dies tomorrow, your whole buy and hold paradigm flies right out the window that very moment. Let me guess, now you are going to compare Bitcoin and the rest of the pack with S&P 500, aren't you?

Please, don't tell me about hedge funds and that shit. If you are going to challenge my point, stay focused on it.
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May 14, 2018, 08:08:54 PM
 #366

Today's hold strategy can not create as high a profit as it did in the past. The current Crypto market is volatile as no one can predict their price. So rely on the experience you have to invest in Crypto, so you will succeed.



I think They just say that the popularity of bitcoin reduces time by time because many people already know it. In fact, people who have statistics are those who are not tech conscious.
Holding is a basic principle in order not to lose much profit. Obviously, if you are not good at trading, you will only hold the coins and wait until the time for the bull market.
Leyss
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May 14, 2018, 08:26:41 PM
 #367

I agree with this statement. The simple retention of the crypto currency does not always bring a good profit. Often, coins and tokens through some even a long time again come back to the price at which their retention began. Therefore, in addition to carefully selecting the necessary coins or tokens for retention, it is also necessary to trade them, selling at least half of them when they are high enough to rise in price and then buy when such a coin or token falls in its value. With this approach, you will always have a good extra income.
yoseph
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May 14, 2018, 08:41:18 PM
 #368

Today's hold strategy can not create as high a profit as it did in the past. The current Crypto market is volatile as no one can predict their price. So rely on the experience you have to invest in Crypto, so you will succeed.



I think They just say that the popularity of bitcoin reduces time by time because many people already know it. In fact, people who have statistics are those who are not tech conscious.
Holding is a basic principle in order not to lose much profit. Obviously, if you are not good at trading, you will only hold the coins and wait until the time for the bull market.
The HODL strategy also seems to stabilize bitcoins and makes it less volatile. The popularity of bitcoins doesn’t dwindle at all it’s still the most popular of all the cryptos and its the first coin every crypto newbie starts to learn about.
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May 14, 2018, 08:50:00 PM
 #369

The popularity of call to HODL is connected with the popularity of cryptocurrency. All those who use the strategy of the HODL have long been in HODL. Therefore, less is said about this.

krhnrhn
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May 14, 2018, 08:59:25 PM
 #370

it depends when you start to hodl. if you bought it was high, you have to decrease your cost before hodl. if you buy already low you can hodl or you can trade for more benefit with your risks.
Elmughni
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May 14, 2018, 11:38:04 PM
 #371

This morning I saw an article where a guy made a simple calculation through Google trends about HODL strategy, and it showed that call to HODL used less and less from February of 2018. Popularity of word Bitcoin and crypto currency is also falling down.
Why it is so? Do not people believe in Bitcoin and it's bright future anymore?
No matter on such tend I am going to HODL my founds till bitcoin will not come back to 20k$ Grin

If you profesional , you can choose day trading. But I think  it's better cut loss and wait for price below again then we buy back, so there will be transaction in btc, and i think the price will not be this bad. if many people only hold btc so  market circulation will decrease. I prefer to hold.
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May 14, 2018, 11:51:32 PM
 #372

there is no time, there is a bitcoin time when very high as it did at the end of last year
and there is a present that is experiencing a decrease in volume but must be sure that the future will come back up again

bitkanu
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May 14, 2018, 11:56:07 PM
 #373

Today's hold strategy can not create as high a profit as it did in the past. The current Crypto market is volatile as no one can predict their price. So rely on the experience you have to invest in Crypto, so you will succeed.



I think They just say that the popularity of bitcoin reduces time by time because many people already know it. In fact, people who have statistics are those who are not tech conscious.
Holding is a basic principle in order not to lose much profit. Obviously, if you are not good at trading, you will only hold the coins and wait until the time for the bull market.
That's just hype word, like a meme, it will have the time when it will eventually lost its hype and no one talks about it, just normal things I must say and there's no correlation between the effectiveness of hodling and the popularity of the words, just kinda confused how see it through that way while it's actually doesn't make sense at all.

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Flickkk
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May 15, 2018, 12:20:56 AM
 #374

This morning I saw an article where a guy made a simple calculation through Google trends about HODL strategy, and it showed that call to HODL used less and less from February of 2018. Popularity of word Bitcoin and crypto currency is also falling down.
Why it is so? Do not people believe in Bitcoin and it's bright future anymore?
No matter on such tend I am going to HODL my founds till bitcoin will not come back to 20k$ Grin
lol .. you can't say it bro . HODL is waiting for the right time to be sell .

"hold on for dear life". backronym of HODL
it says you have a trust on your coin and you will wait for it to go boom.
There will always be a regrets on every decision on Crypto currency.
Just wait  bro until BTC pump up. you will have a face palm

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May 15, 2018, 02:58:57 AM
 #375

We have our own strategies we didn't know if when bitcoin falls down or have a huge increase there are many bitcoiners regret and gained nothing because of panic selling or they think their assets will give no profit so people like this will be always regret the important thing in holding coins is to have faith on it and you must patiently wait if when it's gonna boom.
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May 15, 2018, 03:15:42 AM
 #376

Hodling is not a smart strategy. People are just lazy to study TA.
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May 15, 2018, 03:30:25 AM
 #377

Of course, and most of us already know thatt, you can not expect to make hundreds of dollars everyday because you want to "hold" because it is probably gonna make you lose a lot of money
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May 15, 2018, 03:37:27 AM
 #378

I am still believing in HODL strategy that when the prices goes down, all we do is to cut our losses by buying more of the coin that prices going down. Basically when the prices goes down, it is sale day for me. So, the HODL will still continue.
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May 15, 2018, 04:31:08 AM
 #379

Maybe because there are still some factors that affect it value that is why sometimes it doesn't work the way you expect it, but the thing you are the one who will work out on it whether you still hold it it depends on your own strategies...we all know that there's always changes from time to time.. I guess its just a matter of timing and pursuing what you want to gain.

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May 15, 2018, 05:03:34 AM
 #380

Hodling is a good and simple way to earn money if you are not good in daily trades. But altcoin must be very strong backgound and good comunity. Otherwise it can be wait for something never comes

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