One thing that of course everyone kind of knows, but doesn’t always act on is that trading is a very risky proposition. There are simply so many reasons it can go wrong.
For example, as I mentioned the other day I’ve just got into Raiblocks. However, realistically, at least in the short term I got in a few days late. One of the major challenges I find is that trading effectively seems to need more time than I really have. I.e. the ability to not only research entry and exit points, but also to have time to actually act when you need to, rather than that few days late (which seems to be my normal at the moment). Another example of this issues is Kin. A few days back that looked like a good bet, it had recently moved into the Coinmarketcap top 100 at 4 Satoshi. Sadly at that point I did nothing… or rather I did something else at the time. The next morning it was at 9, i.e. over 100% growth.
On the plus side, one of the lessons I’m learning is to now hold off jumping in late. Agreed that doesn’t always work, i.e. you may lose out on a further jump, but realistically these things are normally triggered. The error I’ve made with Raiblocks is misunderstanding that the trigger that took it from 10000 Satoshi to 24000 Satoshi was most likely getting listed on a couple of bigger exchanges. Binance and Kucoin. Sadly I missed the initial bump and then tried to catch the bump from the listing, although it had essentially already happened. With BTC jumping up in the last couple of days, that’s left me under water again. Another expensive lesson to learn!
My other challenge is not being strict enough / structured enough. I.e. actually my first investment into Raiblocks was actually reasonable even now, 0.1 BTC at approx 17500 is less than 5% of my portfolio and was a reasonable entry price albeit not a great one. I then followed that with 0.2 on a whim chasing the entry on the bigger exchanges. Once again impulsive and without a clear plan, plus taking it over my 5% risk limit that I like on any one Alt coin.
Luckily one of the things that does seem true is that so long as the fundamentals are good, i.e. the project is run by quality people and has a decent roadmap, things will come back in time, and therefore panic selling has the potential to lose you money permanently. Unfortunately I’ve learnt this all too often, with NEO, Binance and others making big gains recently, when sadly i’d already sold as I figured BTC would keep on going up a few weeks back, causing Alts to drop further. I think therefore this time, I will simply wait, at least until I’ve recouped some of the losses, and then rebalance, to free up some BTC for other investments.