Stormgain Crypto Trading Challenge Days 7-8: Steady Profits in Uncertain Markets

in #stormgain2 months ago

stormgain9-10-2020.png

I just made a couple of trades over the last two days.

The first, on the 9th January, was a very straightfoward 30% gain on a $100 Bitcoin/USDT long trade with 10x leverage applied.

The second was a similar bid, $100 x 10 with the “Take Profit” option set to 30%, but it took longer to bring home as Bitcoin went into a steep decline from the $40,000 mark down to the upper $36k mark as I write this.

However, with $53,000 of demo money in the kitty, I felt pretty sanguine about setting the “Auto Invest” option to “ON” while leaving the “Stop Loss” “OFF”.

“Auto-Invest” Triggered!

I missed a chance to take an early $45 profit on the trade. I was only popping back onto Stormgain to check the situation from time to time and not staring at the charts all day. When I checked the price, it immediately declined, so I left the trade open and left it alone.

The last time I checked before going to bed, it had declined enough to trigger the “Auto Invest” and so $770 was not committed.

“Take Profits” Triggered!

When I checked the situation, first thing this morning, I saw that the trade had closed at the “Take Profit” (+30%) mark. BUT, instead of making the intended $30, the trade had yielded a $152 profit on a position that had grown, as the price declined, to $5,695.30 USDT, or just over 10% of my demo-trade capital as the “Auto Invest” kept pumping in more cash.

stormgainresultsjan9-10-2020.png

I feel fine with that as it seems to be bearing out the lessons I learnt in last week’s demo-trading experience.

So that is an average daily profit of $91 over the last two days, the bulk of which came from trading long in a market that turned out to be in decline.

Exact total "profit" so far = $3,236.18

Come along for the ride as I try to learn how to trade my way to a profit!

If you are an experienced trader, any advice would be welcome. Let me know where I’m going wrong, or post some tips in the comments below.

Check out Stormgain at: https://fwd.cx/WmUzkey5BqVp

Looking for a safer way to accumulate and store bitcoin? This is what I use: https://freebitco.in/?r=37315680

David Hurley

#InspiredFocus

#RookieTrader !

This post was first published on my blog @ https://davidhurley.net/stormgain-crypto-trading-challenge-days-7-8-steady-profits-in-uncertain-markets/

Disclaimer: I am not a financial advisor and this is certainly not financial advice. Simply the musings of a rookie trader playing with pretend money…

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Awesome...
Enjoy the run...

Thanks @gurseerat - I'm pleased with the results of the last few days.

Cool,
Enjoy the profit
Thanks for sharing

Thanks, @harpreetjanda but I am only "demo trading" for practice. It is not real money.

Thanks for sharing.

You're welcome, @chmoen

Nice , It is going good for you then.

Thanks, @saachi - after a shaky start, I have put together a nice run of good results. A bull market and a bit of luck also help!

Nice.

Thanks for sharing

You're welcome, @rupinder - thanks for popping by.

I would suggest using stop-loss always... It's important to take profits, but it's important to cut losses too!

Hi @ph1102 - thanks for checking my progress and offering some feedback. I would have thought the same way before this experience. However, several of my losses came from triggered stop-losses and the asset later recovered.

I think the underlying bull market is a key factor to consider. I began to research traders opinions about stop losses, and some think it is a mistake to set a narrow stop-loss, others do not use them at all if they believe in the fundamental value of the asset. I'm sure there is a role for stop-losses, but in the present circumstances I prefer not to use them.

The key for me is not to bid too much and especially to keep the leverage low. It would take a massive downturn for a $100 trade with 10x leverage to chew through my $50,000 of play money - but I acknowledge it is possible, especially when I leave trades open while sleeping!

However, several of my losses came from triggered stop-losses and the asset later recovered.

I do understand this, and it is frustrating... but your final paragraph says it all... big leverage can eat all your balance if it goes in the wrong direction...

Heads up, and play it safe... Only what you can afford to lose! ;)

Cheers!

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