Trade 1 – CRPT
I have been waiting for money that I deposited to Coinbase to clear so that I could move it over to Kraken. The reason I like Kraken better is I can enter a trade set a stop loss and a take profit order and forget about it, very similar to how I trade stock. With Coinbase you can only have one sell order at a time which means I may have to scramble if a trade goes one direction or the other to get what I want. It also seems you order always has to be 1% below current price for what would equate to a limit order. Which means if I have an entry picked out the thing has to dip for me to enter.
And I never enter without a target exit both gain and loss, NEVER and neither should you.
Today I started in CRPT I entered at .0704 and set my order to close profit at .0750 which is about a 6.53% return. A good return. Now the problem with set it and forget it orders is 6.53% was probably a very low return for what I could have gotten.
My order closed though at 12:52 so between 11:21 AM and 12:52 PM central time I made a 6.53% return on investment. Pretty good for an hour and thirty minutes!
I quickly learned that though the fundamentals are the same, CRYPTO is a much different beast that the stock market. I entered two trades and by the end of the day realized I was in it for a long couple of days.
Trade 2 – POND
I entered POND at just $.01075 at 1:15 PM on July 8 and by 4:41 PM my stop loss was hit at .01014 with a target exit at $.1185 which would have been a 10% gain and a stop loss 2:1 ratio at .01014. I quickly learned my lesson that I was a bit over estimating the potential of crypto currency moves. Though this would have easily cashed out at a 5% gain, I wanted 10% in a single trade. I lost. Had I not been so greedy and been trying to get 10% and just settled for 5% I would have made 5% on my money in 40 minutes a 3487% APR for comparision.
Trade 3 — SUSHI
So this trade is why you pay attention to what you are trading. SUSHI is essentially a coin paid out by a platform for people providing liquidity. So really the only thing that gives it value is the platform paying it out. It’s probably not a real tradable coin. One thing for sure though is it can sure lose value.
Again, I am willing to hold CRYPTO longer than stocks because CRYPTO does not have the overnight inability to stop loss. What I mean by that is the stock market has a gap up and gap down every morning. Say you by EBAY stock today and hold that position overnight. If something happens overnight even if you have a stop loss set if the stock opens below your stop loss you lost more than you expected. Since CRYPTO runs 24 hours so does your stop loss.
Now, Coinbase sort of sucks because you can only have one order open at a time. So I always have my stop open and I have to chase up profits, or cancel the order and enter a new order when I hit my profit. Kraken, which is the other broker I use, allow you to set what is essentially a bracket order in the stock market to either Stop out or take profits.
This SUSHI trade was on Coinbase, but no matter what because of the type of currency it is it stopped out and I deserved it for not knowing what I was getting into.
It’s worth noting I am writing this on Monday so I know the outcome that I didn’t know when I made this trade, but I did know on Saturday both this trade and the next one I am going to talk about I was going to have to hold until I got my gain or my stop was hit.
I entered SUSHI at 7:25 PM on Saturday Night hoping for a quick 5% at .6372. By 8 PM I knew I was in this for more than a quick trade. Which sucks because I had such a good trade with CRPT and I knew it was being GREEDY that cost me with POND.
At 7 AM on Monday SUSHI stopped at .6200 I actually forced the stop because I knew this was just not the investment I needed to be this deep in. I tied a lot of capital up in this one and the likelihood of this reaching my goals in the next 100 years was slim. Sometimes you cut your losses and move on. Especially since Monday is a stock market day.
Trade 4 – LINK
At 7:41 PM I was messing with some technical analysis and came across LINK and thought that I could score there so I put an order in. Well, again, I can do pretty good at stocks even though I am by no means a guru on stocks but Crypto I don’t know as well. Again, this trade is ending up being a long term trade. The trade started off great. I thought it was going to skyrocket right as I bought it given the indicators. What I have learned is these 6 cent cryptos don’t jump to 10 cents in a few 5 minute candles like a $40 stock might jump 50 cents in 3-5 5 minute candles. With the fees in crypto (much more expensive to trade than stocks) and the constant market (like I mentioned earlier no chance of coming below my stop while I’m sleeping) I’m a little more comfortable trying to wait it out.
After watching this thing steeply increase in the first 15 minutes I held it it fizzled. Then something which I haven’t been able to run down happened to almost every crypto I look at around 7 PM Central on Sunday. No idea what but the floor fell out of LINK, SUSHI and even ETH. I thought it might be something on the ETH network but I never found anything definitive though something has to be documented out there somewhere on why this drop occured.
Anyway I am in this one for the long haul. As of this writing I am back in the green on this one though my greediness here might yet be an issue because it has reversed again for the time being. Hopefully though I can stay in the green through the night. I don’t have a huge amount of money in it so like I said the fees are worth waiting for the stop out rather than exiting and trading something else. SUSHI was not that way, I had a pretty good chunk of capital in that and knowing that it was going to be tied up while other good trades were going on AND knowing it is in Coinbase where if it hits my profit target I have to go claim it, I just wanted out of SUSHI.
Here is LINK as of the writing of this post:
