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Author Topic: WHOSE INVESTMENT PLAN IS BEST???  (Read 161 times)
hidden_legend (OP)
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September 24, 2018, 07:57:53 AM
Merited by pundit (1)
 #1

Three forex traders, RAMESH, AHMAD and MICHAEL came to know about cryptocurrency market by December 2016.They decided to invest a certain amount of money in this market after a research.They decided to invest $500 each.But they have different trading plan and views about this market, so they decided to check whose trading plan is best who is a successful investor with following conditions:
1) Investment duration is 3years
2) Nobody can sell before 6months period from investment.
3) They can invest only in three coins.Bitcoin,Ethereum and Ripple.Either anyone can invest his whole investment in one coin or divided it.
4) After six month anyone can sell and later re invest from profit.

On 20th of January 2017, they start their crypto trading journey.Now see below how they implement their trading plan and earn/loss on their investment.

Investment plan of RAMESH:-
Ramesh divided his investment of $500 in two parts.He invested 50%($250) in Bitcoin and further divided rest of 50%($250) in two parts and invest equally in Ethereum and Ripple.So here is how he invested and how much amount of coins he HODL on 20th of January 2017:
He bought Bitcoin @$900 per coin from exchange and he received approx. 0.27 BTC after paying exchange fee etc.
He bought Ethereum @ $10.50 per coin from exchange and received approx. 11.75 ETH after paying exchange fee etc.
He bought Ripple @ $0.007 per coin from exchange and received approx. 17800 XRP after paying exchange fee etc.

Investment plan of AHMAD:-
Ahmad divided his investment of $500 in three parts.He invested 35%($175) in Bitcoin, 32.5% ($165) in Ethereum and 32.5%($165)  in Ripple.Here is how he invested on 20th of January 2017 and what he HODL:
He bought Bitcoin @$910 per coin from exchange and he received approx. 0.19 BTC after paying exchange fee etc.
He bought Ethereum @$10.50 per coin from exchange and he received approx. 15.60 ETH after paying exchange fee etc.
He bought Ripple @ $0.0075 per coin from exchange and he received approx. 22000 XRP after paying exchange fee etc.

Investment plan of MICHAEL:-
Michael divided his investment of $500 in two parts. He invested 50%($250) in Ethereum and further divided remaining 50% in two parts and invested 25%($125) in Bitcoin and 25%($125) in Ripple.Here is detail what he HODl on 20th January 2017:
He bought Ethereum @$10.5 per coin and received approx. 23.60 ETH after paying exchange fee etc.
He bough Bitcoin @ $900 per coin and received approx. 0.1355 BTC after paying exchange fee etc.
He bought Ripple @$0.0075 per coin and received approx. 16660 XRP after paying exchange fee etc.

During 2017 cryptocurrency market saw a boom and every coin hit all time high.Now see below how these friends managed their portfolio and what they earned.They start managing their coins after 6month locking period.

Ramesh decided to move with market and sold his coins with a market reversal in mind as follow:
He sold his whole amount of BTC (Approx. 0.27BTC) on 11th of December 2017 @$15000 per BTC and received approx. $4050.
He sold his whole amount of ETH (Approx. 11.75) on December 22nd 2017 @$800 per ETH and received approx. $9400.
He sold his whole amount of XRP (Approx. 17800 XRP) on December 22nd 2017 @$1.15 per XRP and received approx. $20450.
So his total was $4050+$9400+$20450 = $33900.
He earned profit of $33400 with an investment of $500.
He again enter market at low and reinvested $10000 out of $33900.

On other hand after locking period Ahmad decided to sell his coins in intervals as follow:
He divided his each coin holding in 3parts and sell a part with every price jump.
He sold .07BTC @$4455 on August 15th 2017, 0.07BTC @$15000 on 11th December 2017 and rest approx. 0.05BTC he still holding.
He received total $311+$1050 =$1361.
He sold 5.2 ETH @$300 on 15th of August 2017, 5.2ETH @$1300 on 10th January 2018 and rest approx. 5.2ETH still holding.
He received total $1560+$6760= $8320.
He sold 7000 XRP @$0.22 on 29th of August 2017, 10000XRP @$3 on 3rd January 2018 and rest approx. 5000 XRP still holding.
He received $1540+$30000= $31540.

Now his total is as follow:
From closed positions
$1361+$8320+$31540= $41221
From holding positions
$335+ $1248+$ 2750 = $4333

He also reinvest $20000 on low market in intervals.

Michael decided to HODL his whole portfolio and didn't sell anything yet and his holding value at current market price is as follow:
He HODL 0.1355BTC @$6700 = $907
He HODL 23.60 ETH @$240 = $5664
He HODL 16660 XRP @$0.55 = $9163
So total on date is $907+$5664+$9163 =$15734.

From Above trading plans it is clear that all three friends earned from their investment of $500 a huge amount of money.But whose plan is wise, sensible and professional, its topic of discussion.My personal view is trading plan of AHMAD is professional and sensible as he sold his holding wisely and already covered his investment. I think many member here have similar kind of trading or investment strategies.Kindly share which trading strategy is professional, wise and sensible according to you from above and why???

Note: Please ignore my English mistakes if anyone find them.


pundit
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September 25, 2018, 02:39:09 PM
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Trading is of 2 types rather 3 types when we come to forex, day trading, short term and long term trading, long term trading means holding your position from many days to many months, as far as crypto market is concerned day trading is a bit difficult as we do not have much fluctuation a price during any day total volume in crypto market is less as compared to Forex.

Now coming to investment in various coin, it may get huge profit but think about the people who invested in BTC at $19000, their investment now is 1/3.
while you do short term of long term trading your target price and SL should be in mind, I know a trader in crypto whose portfolio was around $50K, she was holding NPXS and now it has decreased around 10 times, its very important to have your profit level and loss level defined whenever you take the position, the most toughest thing in trading is to know the TOP and BOTTOM due to which greed and fear exists and most of the traders lose their assests, so before taking any position profit level and SL level should be well defined and when it hits any of these level one should look for a fresh position with fresh mind, position should be taken on some basis not blindly, if a trader follows these plans chances of his success are very high, last but not the least, DO NOT CONSIDER ANY FINANCIAL MARKET A QUICK MONEY MAKING MACHINE.

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hidden_legend (OP)
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September 25, 2018, 03:16:22 PM
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Trading is of 2 types rather 3 types when we come to forex, day trading, short term and long term trading, long term trading means holding your position from many days to many months, as far as crypto market is concerned day trading is a bit difficult as we do not have much fluctuation a price during any day total volume in crypto market is less as compared to Forex.

Now coming to investment in various coin, it may get huge profit but think about the people who invested in BTC at $19000, their investment now is 1/3.
while you do short term of long term trading your target price and SL should be in mind, I know a trader in crypto whose portfolio was around $50K, she was holding NPXS and now it has decreased around 10 times, its very important to have your profit level and loss level defined whenever you take the position, the most toughest thing in trading is to know the TOP and BOTTOM due to which greed and fear exists and most of the traders lose their assests, so before taking any position profit level and SL level should be well defined and when it hits any of these level one should look for a fresh position with fresh mind, position should be taken on some basis not blindly, if a trader follows these plans chances of his success are very high, last but not the least, DO NOT CONSIDER ANY FINANCIAL MARKET A QUICK MONEY MAKING MACHINE.

I agree and day trading is really tough in crypto market.But there is one advantage if we trade wisely and without any leverage that we can hold our positions for long time if they don't work according to our plan.Its also hard to choose a particular coin/token in current situation.Thanks for sharing your views.
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