Category Archives: Trading

Started The Week With A Little Trading.

As I mentioned on Twitter last week, I think I’m going to start posting some of my buy / sells on my blog.  For the most part, this is to help me keep track of my buys and sells. With some of the exchanges not keeping order history for longer than a few months, I’m using this as a gauge to quickly check prices.

I am not a financial advisor. This is not meant as financial advice. This is just The Dood, doing The Dood.

The only thing I sold so far today was a little Tron TRX at .00000669 Still holding a nice bag, just thought I’d take some profits. If it goes up, I’ll sell more, if it goes down, I’ll buy back eventually.

Currently accumulating:

WAX .00000953
DTA  .00000024
POLY .00003332
DRGN .00002336
TEL .00000010
SNM .00000573
FTC .00000457
NXT .00000728
IGNIS .00000439
PPC .00015817
BAY .00000201

Bought back some MANA .00001021

My big gamble for the day was doubling my position of SNOV .00000034
Hoping for a pump and I may completely exit that market.

Currently swing trading the volatility of BCH, LTC, ETH & ZEC for USD. HODLING BTC, and trying to build my USD.

Remember, The Dood is not a financial advisor and nothing here is meant as financial advice. Please seek a duly licensed professional for financial advice, not some jackass on the internet who refers to himself as The Dood.

Happy New Year From The Dood

Happy New Year.

Like many in the crypto space, I’m happy to leave 2018 behind. We started 2018 enthusiastic and hopeful, only to slowly watch the price decline over the entire year. Some of us took record gains, while others bought the top and watched as the value of our investments slowly dwindled over time.

This is how markets work. What takes years to build and tumble in the stock market happens in mere months with cryptocurrency. Now we play the waiting game. Looking at charts for levels of support, watching trade volume closely. All of us looking for some sign the bottom is in and the bear market is over.

I honestly expected a correction in 2018. It was inevitable. I expected a bottom around $10k and my worst case scenario was somewhere around $5K. I took some profits near the top, bought some new toys, re-furnished the house, then slowly bought the dips on the way down. It’s important to take profits in this game. It’s why we trade!

I bought the dips slowly and built my dream crypto portfolio. Watched as the price and value slowly dwindled. It was painful, but this is a long-term game. I continue buying, building, and waiting. That’s my game plan for 2019. Build strong positions in strong coins. What goes up eventually goes down but the reverse is also true. These are market cycles and nothing in this life is permanent including bull/bear markets.

Although I feel terrible for the people that bought into the media hype of early 2018. Better days are coming for the strong handed and brave. I’m going to look at 2019 as a rebuilding year for me. I’ll continue to look for strong projects, and continue to build my portfolio. Watch for levels of support and resistance. Swing trade when I can and continue to build BTC, USD, and alts. Now is the time to prepare for the next bull run. Those that take advantage of the bear market will reap the rewards of the bull run!

2018 was an incredible year filled with emotion. 2019 is the year of rebuilding. Stay positive, stay focused, and always look to the future with optimism. Wishing you all a healthy, prosperous and happy 2019! Happy New Year from The Dood! Let’s make crypto great again and make 2019 another great year to remember!

My 5% – 25% Percent Rule For Altcoin Trading

Over the last few months I’ve been working on a 5% to 25% plan for trading cryptocurrency. This is a plan to always hold at least 5% to 25% of any long term cryptocurrency position. There are several reasons for doing this.

  1. Accumulate some nice trading positions
  2. Have coin to sell for unpredicted price increases
  3. Build a really strong portfolio

My original plan was a strict 25% rule, but as I started to incorporate it, I realized that wasn’t always plausible. One reason was, depending on what you purchased the coins for, 25% is a large portion to hold. Especially if you’re selling on a 10% to 25% gain. Technically you end up holding your profits. This may not be a bad idea with some really strong coins, but for other weaker coins this may not be such a good idea.

For this reason I decided to make a judgment call based on individual coin performance. For the most part though, I now keep a small portion of almost every coin I trade. Roughly I keep 5% to 25% of every long term coin I hold.

A few exceptions to the rule. Pump and dump shitcoins. Although I rarely buy into these, occasionally I speculate on complete shitcoins. These are abandoned coins with no dev or scammy devs, or no real use case. Many exchanges are full of these coins and although The Dood tries to stay away from shitcoin projects, sometimes you can just tell which way the chart is going to head and you just can’t resist. Remember though, if you get burned on a shitcoin, you have nobody to blame but yourself! I try to cash out as fast as I buy into these projects. Remember, the best way to not get burned is to simply stay away from projects like this in the first place.

Another exception to this rule might be catching a flash crash. You buy the bottom and sell the top for a quick profit. Profits are usually taken within a couple hours. I’ve been lucky enough to catch a few flash crashes, but if I don’t completely believe in the project, why bother hodling any significant position?

Another exception is occasionally I’ll take on a project and get paid in cryptocurrency. If I don’t like the coin, I just cash out to BTC. No sense in holding a coin you don’t like.

These are just a few exceptions. The bottom line is I always go with my gut. My main motivation for this rule is so something like my experience with DASH never happens again. Basically I sold a lot of DASH early and lost a lot of money… You can read about it here. bitcoindood.com…

Now I started incorporating this rule before this last bull run and I have to say it has improved my trading considerably. For one thing, I’ve accumulated some nice bags of coins. I currently keep a journal of my base bag, or coins that I won’t sell unless an emergency arises and I need money. The really good news is, using this system, emergency cash or crypto is always on hand.

Another benefit from this is I no longer fear the early sell. A great example of this was BitShares. I bought a ton in May around 300 satoshi, sold a bunch in June at around 3000 satoshi and then watched the price continue to climb to 16,000 satoshi. The old me would of shot my load early. We all hate to admit it but hey it happens from time to time. Using the 25% rule I was able to sell a nice chunk of coins that I purchased around 300 satoshi for around 16,000 satoshi a couple months later. I still kept a small amount just in case, but had no issues watching the price drop as I began to buy back my position at around 5000 – 6000 satoshi. I’m really happy with this short sell.

That’s just one example, of the benefits I’ve recieved since starting to do this. I’ve also watched my portfolio size grow in both coins accumulated and value of BTC. The downside to this is the portfolio value will swing considerably. At one point I was down a considerable amount in BTC value, however, all the coins are paid for at this point so you’re literally playing with “the houses money” as they say.

Another benefit is, when your coins are paid for, losing your position in an attempted short doesn’t hurt as bad as losing twice on coins you were already losing on. Sell short at the top, and buy back cheap for maximum gains on paid coins. It’s a win win!

My overall goal with this however is to create some nice postions of various coins that I feel are strong and have a bright future. Imagine buying Ethereum back in 2015 at 50 cents each and still having a bunch to sell today at around $200 to $400 dollars. Nobody really knows which of these coins will be winners or losers, but chances are that there are still plenty of Dash’s and Ethereum’s out there. Keeping a small nest egg of these coins around for future speculation certainly can’t be a bad idea. Who knows maybe those 1000 coins you put aside today, will go up to $100 USD 5 years from now and will be worth around $100,000… These things happen all the time in this game, and if we don’t at least attempt a long term strategy these types of gains will never come to us.

To summarize, my long-long term strategy is to build and hold as many coins as I can. I have to follow each project closely and watch for any signs of trouble so I can plan an emergency exit if needed. Holding anywhere from 5% to 25% of my coins, in the end, if just a couple of these bigger projects really take off and become the next Ethereum, Monero or DASH, I plan on reaping the benefits of being an early adopter and long term hodler.

As usual nothing here is meant as financial advice. This is just a strategy that I’m working on for me. Please seek a duly licensed professional for finanacial advice, not some guy on the internet who refers to himself as The Dood. Never forget, cryptocurrency trading is extremely risky and never invest more than you can afford to lose! Thanks for reading and happy trading everyone.

This post was originally published to my Steemit:
steemit.com…

If you’re on Steemit, stop by my page and say hi 🙂 and I hope you decide to follow me.
steemit.com…

The 2017 Roadmap for PoSWallet

Just came across the PoSwallet roadmap for 2017. These guys are accomplishing big things. If this is your first time hearing about PoSWallet, it is an online group cryptocurrency staking wallet. Basically users pool together their proof of stake cryptocurrencies and PoSWallet stakes them in a group wallet and distributes the staking rewards to the members for participating. This is a really great way to stake multiple cryptocurrencies without tying up tons of system resources. Now instead of running a wallet for each POS (proof of stake) coin you have, you can just hodl them in your PoSwallet account and still enjoy the earnings. They currently host wallets for close to 100 different proof of stake coins.

I’ve been following this site pretty much from the beginning. I’ve watched it’s user base and platform both grow considerably. Their most recent upgrade is an on site cryptocurrency exchange for trading. Now you don’t even have to transfer your coins to an exchange, and you can trade them right on the site. I came across their roadmap for 2017, and I have to say it looks pretty impressive.

Dev roadmap for 2017 PoSW

PoSWallet roadmap for 2017

These guys are accomplishing big things, not to mention best ICO offer I ever bought into! If you’re interested in learning more about this project, you can check out these two interviews I did with the lead dev awhile back. The first link is about the PoSWallet coin, and the second one is about the staking wallet. This has been a really fun and interesting project to follow:

The Dood Interviews The Lead Dev Of POSwallet!

Interview With PoSW coin.

Interested in opening a free staking wallet, here’s a referral:

poswallet.com…

The Most Expensive Cryptocurrency Trading Lesson I Ever Learned

I was just talking with a friend on twitter about DASH cryptocurrency. Before the rebranding to DASH, it was called DARKcoin. It was during this time that I made the most expensive mistake of not only my crypto trading career, but probably my life. Apparently my friend had made the exact same mistake. I’m going to share with you the most expensive lesson I ever learned.

When DARKcoin first came out, there was a lot of controversy about pre-mines, and who owned what as far as coin holders. This caused a lot of price volatility and created plenty of opportunities to pick up some really cheap DARKcoin at times. Even with all the FUD, most people involved in the cryptocurrency space immediately seen that this coin and it’s developers were onto something as they promoted the DARKcoin, and tried to tackle the problem of TRUE cryptocurrency anonymity.

The Dood bought a bunch of DARKcoin on one of the dips. A really low buy order got filled and I got some really cheap coin. It wasn’t a large amount, maybe about 1500 coins, I can’t remember what the transaction cost me, but I remember I got them cheap.

As usual I bought and sold them several times. I was fairly new to trading crypto then and I would sell the “TOP”, then buy back on another dip. Often, I would dump my entire position and buy back later at a much cheaper price. This is called “shorting your position”

When DARKcoin rebranded from DARK to DASH I learned the most expensive lesson of my trading career. Never dump your entire position unless you’re planning on completely exiting a market. Even then you may want to re-think dumping everything, because this is crypto trading, and anything is possible.

I learned this the hard way, and a year or so later I was watching a stock trading video on youtube and the guy said the same thing. NEVER DUMP YOUR ENTIRE POSITION on a short. The reason for this is very simple, if the price continues to rise, you will have to buy your position back at a loss. Now this also breaks my second rule of trading. NEVER CHASE AFTER COINS. If a coin gets away from you, let it go, the market always presents a re-entry point. Usually!

So DARKcoin rebrands to DASH and like so many coin rebrands it was met with rising coin prices, lots of hype, and the price rising considerably. This is where I made my biggest mistake. What I thought was certain to be a pump, and all the hype of the relaunched coin under a new name, I dumped my full position at what I thought was the “TOP” and it just kept climbing and climbing. Not willing to break my second rule, I never bought back in! What amounted to no more than a few dollars in trading profits would of traded today at well over $60,000 !

Dash cryptocurrency chart

Dash at current prices my coins would of been worth around $60,000!

DASH continued to rise and rise, and after it climbed to well over $10.00 I just stopped paying attention. A lot of people made this same mistake during the rebrand and you can imagine the emotions that arise when they realize the opportunity that they missed out on. For me it’s the one that got away, and for this reason I rarely sell more than 50% of any position I have in a coin. No matter what, I always hang on to at least 25% of any coins position just in case.

DASH cryptocurrency dump

When you remember how you dumped your DASH early.

Today, if I would of sold my 25% position of the original 1500 coins, I would of had about 375 coins worth about $42 each for a total of around $15,750 dollars. Live and learn!

Thanks for reading and happy trading everyone!

Originally posted on my Steemit. If you’re on Steemit, hope you decide to follow The Dood.