A short term investment strategy.

Right now I feel pretty comfortable with my portfolio for long term holds. I think it’s pretty balanced and has a bunch of coins which have a long term future. It’s mixed between BTC and then Alts in the platform and privacy spaces. Then it’s supplemented with some identity tokens, gaming, exchange, and advertising space offerings.

However, I’m realistically not planning on trading those coins a whole lot. Obviously if all time highs are reached (ATH) in coins I will look at taking some profit to put back into BTC or perhaps invest into other new coins, but I’m not looking at short term gains on those coins. At least, not with those I have right now.

However, I am now thinking about what I can do to make a regular monthly return. For the last year or so I’ve been paying into an ISA (a tax free savings account in the UK). Now you could argue that that’s a pretty stupid choice, given that Crypto has gone up way more this year, however frankly I only even started with Crypto in June 2017 and I really had no idea of the concepts or potential. Even now, let’s face it, this is a highly volatile space. So, whilst I believe that there is every chance this will change the world, literally, I am also sensible enough to spread my risk and invest in various fashions. A pension, for retirement, medium / long term savings in the ISA, and then Crypto for the short / medium term.

What I’m therefore working on is how can I make the same amount I put into my ISA each month from Crypto. This is a slightly different mindset because it requires more focus and opportunistic trading, rather than the slightly more laissez-faire approach that perhaps you can get away with when you’re looking for a return in 1-3 years.

Therefore here’s what i’m thinking.

To make a good and relatively rapid return, I need to do the obvious. Buy low and sell higher! In addition, trading with a relatively large amount, i.e. 1 BTC means that gains are multiplied fairly quickly. Of course losses are too, so the risk is higher, but that leads me to my next point. I won’t trade coins that I don’t want to keep. That way, worse case scenario, I end up with more of a coin that I hold in my long term portfolio.

The next point is that I need to find a coin that is moving reasonably regularly. Looking at coins that a very stable like LTC for this, likely wouldn’t be all that good. So i’ve been thinking about things like FUN and NAV and CVC, which have all had pretty decent swings recently. These are all in my medium term portfolio so there is an element of safety.

Here are some examples:

Buy 1BTC worth of FUN at 850 satoshi (above the recent low points, but not crazy high) – If it goes up to 950 satoshi, which is has done several times in the last week or two, then you make 0.11 BTC, easily more than I’m putting into the ISA. Now ideally I would have a bot trade that, which would keep trying to maximise the peaks and troughs, i.e. wait to buy until a real dip was detected and wait to sell until a peak, but realistically, I’m not certain I know how to get that to work reliably. I’m going to play around with Gunbot a little more and see how it’s developed in the last three months since I last used it. So likely to start with I will pick an entry point and place a buy order, and then set an alert on my phone for that buy point (need to figure that out!). I will then set a manual sell point, likely relatively conservatively and take my profit. Yes, I could make more at the top end, but ultimately I’m looking to make money, and i’ve found one of the biggest reasons for not making money, is being greedy and waiting for that little bit more profit! Finally the thing to remember is that I only need to make this work once a month. So having the patience to wait for the correct entry point, and not rushing it, is important to the chances of success.

I will report back and let you know how it goes.