Warren Buffett has postulate "Better buy good stock at bad price than bad stock at good price". These words are very smart and true and when you are starting position in stock or crypto, you should follow that. I wrote an article how to invest in Cryptos and for those who didn't read it, here it is:
https://steemit.com/cryptocurrency/@cicbar/crypto-investing-guide
That article was how to start position and today I will try to explain my view, when is right timing to close some position.
First of all, it is ALMOST IMPOSSIBLE TO BUY AT LOWEST PRICE AND SELL AT HIGHEST PRICE.
Yes you gonna hear stories from people how they have bought or sold something with perfect timing but in reality only really small percentage of these stories are true. My friend @fullcoverbetting likes to bet on sport and I have many friends who like that. When you speak with them, they are winning all the time and if this is true, betting houses will be always in minus. Reality is much different, most of them are overal in minus but they are talking about success only when they win. Situation is same here with successfully catching lows and highs.
One month ago I have bought OKB, OKEx profit sharing token and I have wrote article about it:
https://steemit.com/cryptocurrency/@cicbar/okb-okex-profit-sharing-token-with-great-roi-at-current-price
That was great buy for me, because I have bought OKB at 1.7$ and price of OKB at moment is 6.33$.
I could lie now how I have profit at almost 400% but in reality my profit is still great but smaller. I have sold OKB at 5$. I am very satisfied with my profit and I don't regret even if OKB goes to 100$.
This is very important rule so NEVER REGRET IF YOU SELL TO EARLY.
You can achieve this only if you set your goals and if you sell when you achieve your goals. We all have different goals and desires so there are no clear rules what your goals should be. I can say only that you should try to be realistic when you set your goals.
When I invest at stock market,I have two types of investments. I have stocks that I buy and never sell and stocks for trade. Never sell stocks are dividend stocks for my retirement portfolio and they must have business model that is immune to crysis. Other type of investments are trade stock. I buy them when price drops hard because of something but only if reason for price drop is not something that will damage long term business of company. My goal on this trade is to achieve 20% profit. Many times I have sold to early but I don't care if my goal is fulfilled.
At Crypto, for me is still only one never sell coin and that is BTC. Dough it doesn't have passive income, I strongly believe that long term price will be much higher so passive income will be reflected in price.
I believe in platforms so I plan to keep some of them for long term like NEO and EOS.
Beside that, I trade some Cryptos and when I do that, my goal is to double my investment so to reach 100% profit.
At OKB I had 300% profit so why I didn't sold at 3.5$?
I have rule, NEVER SELL WHEN YOUR INVESTMENT IS RISING UNTIL IT DROPS FOR TWO CONSECUTIVE DAYS.
If it drops after two days significantly under my 100% profit rule then I don't sell. If it is around it, then I sell. With this rule you will avoid many times early selling. That happened with my OKB investment. I made 300% profit.
These are sweet problem when we are discussing when to sell at profit but when is moment WHEN YOU SHOULD SELL AT LOSS?
MOST IMPORTANT RULE for me is NEVER BUY CRYPTOS WITH BORROWED MONEY.Then you don't have to sell if your investment is dropping hard.
I NEVER SELL AT LOSS IF REASONS WHY I HAVE BOUGHT SOME CRYPTOS HAVEN'T CHANGED
When we do our research we have our reasons why we have bought something. If that reasons are still there then you shouldn't sell. I sell at loss only if there is significant change and I see no point of keeping my position. If you do good research this shouldn't happen to often. I did this only few times in my life.
I would like to hear and discuss what are your goals and what rules you have. Sharing your experience can help us all becoming better investors.
Regards,
Whatever your argument, I just don't like Warren Buffett anymore!!!
And YOU SHOUDN'T mentioned his name on steemit.
YOU SHOULD KNOW BETTER.lol
Buffett, Buffett, Buffett. Just joking man. I agree with you 100%. The old man may have once been a role model, but that was back in the fiat criminal central bankers days. (Before the age of Satoshi) We are free now. Free to make money from home with Steemit. Free to mine cryptocurrencies. Free to send money to anyone in the world who has a smartphone.
Besides, he is on that Fear Monger train to dispel anything and all that is good with crypto... only to protect fiat and the banking industry. It's all he knows and he will do or say anything to disrupt the crypto space. I don't trust him now.
Actually his stance on crypto is no different from his initial stance on technology. If he doesn't understand the product he takes a dim view of it. My how that has changed as witnessed by his AAPL holding.
AAPL is not BTC!
Correct! It's not about AAPL it's about the concept of understanding. Until Buffet spends some time understanding cryptocurrency his view will be negative toward it. As a buy and hold investor I doubt that he will spend the time to do so.
Ha, he doesn't likely have much time left to Hold onto anything for very long!
P.S. I like your moto at your profile :-)
Just a modified version of the "Golden Rule!" It would be a good thing if most everyone could live this way, huh? And I don't care for Warren Buffet lately myself.
We should learn even from people that we don't like. I hate what he is talking about crypto but that doesn't mean that we can't learn anything from him...
True. What I have learned lately is that I don't like his integrity. If he doesn't know anything about crypto, then he should say so instead of selling himself out for the benefit of his kind. Turned himself into a liar is what he has done.
+1 😁
Don't worry @cicbar. I will support you. Good post!
Thanks I appreciate it :)
That Warren Buffet quote hit me so hard.
Warren Buffet - He says a lot, but believe they do not understand what they're saying. And I do not know what will happen next!
Buffet is an investor of the past and no longer has the risk tolerance of those in the crypto market. He doesn't understand the market and thus his opinion on crypto is irrelevant.
Yes 100% right. It’s likr football player telling us how to play basketball.
I’m sure most of the core strategy can be applied for both old day and crypto investment. But crypto game it’s self more of a millennial game.
Why not? He is investor with good rules and I don't care if he hates Bitcoin. Some of his rules are doable at any investing strategy so they are good at Crypto investing also.
Hi Cicbar :)
Warren Buffett investment in like Coca-cola contribute to nearly 137,000 deaths a year from diabetes, 45,000 deaths from heart disease, and a few more thousand a year from Cancer.
So DO you like an investor who care more about the ROI than negative impact in the society ?
I would agree with you if people don't know how Coca Cola is unhealthy. Most of people know that it is bad but still drink it. It is not Warren Buffett's fault. Even I drink Coke sometimes with Pizza :-) I know what is your point but you know for sure that many factors have influence at diseases, not just Coca Cola. Usually people who drink Coke, live very unhealthy. Warren Buffett drinks Coke every day and he is 80+...
Warren Buffett era investment strategy = ROI with compounding interest
Crypto investment era = ROI with compounding impact.
And the world needs a lot of impact. So we’re here to help people and getting richer by doing good!
2018 + = WORLD LOVE II
1948 - = WORLD WAR II
+1 I hope we will get there :-)
I believe we'll get there!
It's what he puts in his coke that keeps him going! 😋
Ha ha! True!
Lol :-)
lol, this makes me laugh of the day.
You are very true on this that don't trade with borrowed money. I remember when I trade ripple and I use borrowed money on marginal trade. I felt so greedy that borrowed so much then the ripple tank down and I lost all my ripple. I learned so much in that experience and never done that again.I can say that I am not an day trader but a long term investor. By the way good luck to all who are here in crypto, We can profit more money because of its infancy
You have said the reality about trading with Borrowed Money.
Thanks!
Same with me. I got burned for borrowing once but I was lucky that that lesson wasn't too expensive...
Like how you have divided your stock portfolio into Buy and Hold (Investing) and Variable Trade (Trading). Also agree with having an investing goal and sticking to it. This relieves some of the emotion out of trading. It can be very tempting to continue to hold a stock you are trading as it goes up (or down). However it is at your peril. If the thesis that got you into a stock holds then consider buying more if its going down or staying in if it's going up. If the thesis has changed, time to move on.
GREAT advice to not buy cryptos with borrowed money or on credit. Could force you to have to sell at a bad time.
Thank you :-)
Awesome trade highlights. I like your rule about never selling if the crypto is rising and has fallen for 2 days if it's not near your profit target. I like your honesty here - nobody can predict these price moves with perfect timing. I would also stress the fact that not trading with borrowed money is a cardinal rule! You have posted yet another great post, keep em coming!
Thanks! :-)
Those are some very interesting tips you have mentioned
Thanks!
thanks for the good info
Some nice advise got from your informative post. Specially, the point ‘never regret’ if the price goes high after your selling. Thanks.
thanks for the info
Steem at $3 seems like a good price to buy to me. lol
Agree. It was better buy sub 2$ but still is good buy for me...
Yeah We probably shouldn't ever see below $2 again but who knows. Right now it looks like we could stay above $3 but hard to say in the world of crypto. lol
Do you use @dustsweeper? My solo upvotes don't count.
No, never heard before for it. Look interesting, I like all things that are supporting new users.
Your solo U/V's may not count for earnings, but it does help someone's "Reputation!"
Thank you for sharing. i agree with you. Profitable trading is a lot of hard work. Each time I make a huge profit, greed takes over and I quickly lose all that I gained. Its hard work to maintain discipline when trading.
I buy high and sell low.
:-)
"I NEVER SELL AT LOSS IF REASONS WHY I HAVE BOUGHT SOME CRYPTOS HAVEN'T CHANGED" the problem is, you could have bought btc at 10k and it would be the same, and underwater for many months
That is no problem for me. Some investments will be positive after long period, I am patient if reasons for investment are same.
The price you pay is really important, but I do agree you should only buy stuff you actually believe in. Anything else is gambling.
I do agree with buying stocks or cryptos with fundamental reasons, for retirement.
Let's talk about stocks; microsoft or AMS in DJ can be examples.
There are certain reasons a pioneer company like MS or a steel tycoon like arcelor stays long time in profiting and make passive income for stake holders.
But in cryptos, it will be more difficult to come in to such conclusion; BTC is a good example. It lacks currency properties, and also it is a fragile longrun investment option.
ETH seems to me most likely to stay in the market but still doubts are serious. The reason I believe is: the whole crypto ecosystem is very recent and new.
So if I wereyou, I would stick to my good plans for all cryptos and invest my major capital on traditional stocks, real estate and commodities.
Right now I have only 10% of my investment on crypto, mainly on btc, eth and eos and some steem.
I appreciate your advices 🙇🙇
Thanks :-) I am more than 10% in Crypto but majority is still in dividend stocks.
I wish you very good luck. I will increase my investments on cryptos slowly, but still on periodic short runs 🤞
Again you nailed it friend!
It is always hard to say goodbye to a coin! We are all afraid that it will moon afterwards. But I did had a selling plan for most of my coins but it got snowed under due to the current market!
I am niw thinking about selling reddcoin with a loss, to purchase with the money Neo, Neblio or some more Coss!
Damned I should have followed you on OKB!
Indeed most sport bettors only writes about there wins. We must remeber that only 5% of the sportsbettors make a profit. Most members of the SBC are transparent about their wins and their losses, which is like it should and what we do find utmost important!
Sharing is indeed important so that they ones who are willing to learn can learn!
Resteemed your post!
Maybe you should look into the @investorsclub. Maybe you do find some great articles there!
Thanks mate :-)
Thank you for sharing your insight, experience and perspective, @cicbar.
timm in cryptocurrency trading you to go deep in fundamental analysis so you can't buy bad stock at good price never maybe your are a beginner
Check out rmac.fund. Some good things going on using in-depth market analysis in order to find the cream of the crop. For day trading, fundamentals are all but useless. It just depends on your goals and timeframes how much you look at the fundamentals. Even then, sentiment can kill the best of projects. The market is not logical. It is sentimental and fickle.
Earning money is a hard thing.. )
The Rockerfeller's used to have a maxim: "Nobody got poor by taking profits".
Too many people seek to compare themselves to unrealistic maximums or tops. When they should only be looking at their own buy price and thinking a) can I sell at a greater price than I bought at and b) will selling give me a decent return.
I really love this advice:
Sometimes I am tempted to borrow money and buy Cryptos when the Market is down...thank you @cicbar for this wonderful advice and insights.
You welcome :-)
This is really a good article.I'm agree with this.
Upvoted ($0.17) and resteemed by @investorsclub
Just a friendly reminder to use the #investorsclub tag to qualify a post for an upvote. More info on tags to use here.
Join the Investors Club if you are interested in investing.
Only dead fish go with the flow:
Stock market is a scam:
And Warren Buffet got rich because he was scam insider, not because he is wise :)
If you do good research this shouldn't happen to often.
I agree upon this, we have to first do some research before purchasing and selling any crypto, because crypto markets don't remain constant they show huge changes at some times.
Well said, @cicbar. There's a quote buy Bernard Baruch when asked how he got so rich - "Don't try to buy at the bottom and sell at the top. It can't be done except by liars".
Similar thoughts echoed by the Rothschilds. If it worked for them, it can work for the ordinary investor/trader too.
This is really a good article.I'm agree with this.
Thanks 😁
Agreed. There's always a possibility that the good stock will increase in value and will benefit you in ways but bad stock Never benefits you.
really good article
is very good airticle
Well said, @cicbar. There's a quote buy Bernard Baruch when asked how he got so rich - "Don't try to buy at the bottom and sell at the top. It can't be done except by liars".
Similar thoughts echoed by the Rothschilds. If it worked for them, it can work for the ordinary investor/trader too.
I haven't had yet a set of rules, but goals I have. And in all my tradings I had a specific number to sell at, but never had the patience. I think though that I will put to the test your to day rule when selling my cryptos.
It will just take some time for the market to recover. I will not sell though at the first boom. If my goals will be accomplished by the end of summer I will sell then, but if not I will wait for winter. Unfortunately that's when I got in with some of my investments and I know from my own experience that the hype is pretty big then and another think that I learned is to sell whenever the crowd gets to overconfident and buy where is doubt.
Patience is crucial. You have to practise to be patient.
Bitcoin has the right balance of pros and cons. That's why it's so popular.
Once a value investor, always a value investor.
Agree :-)
Great and insightful write-up
Thanks for sharing this with the community. It always nice to read something that is done with passion.
great article, hopefully many enlightened investors. good work @cicbar. thanks.
Hi, thank you for contributing to Steemit!
I upvoted and followed you; follow back and we can help each other succeed 🙂
The short term trades are worth to be done but Warren buffet is being disliked more and more nowadays.
#public_opinions
It's never will be a good price or a right time, it' s just your experience. Thanks for the post!
Hey @cicbar, great post! I enjoyed your content. Keep up the good work! It's always nice to see good content here on Steemit! :)
@ahmedjubayer - You may not realize that "enjoyed your content","good content","good work","great post","i enjoyed your content" is considered to be spam, you used 70 similar phrases in your last 100 comments, I've replied to you 1 time before, and the Steem Sincerity API shows a 53.20% spam score. Learn why this is spam and a few better ways to earn the support of the community when commenting.
@cicbar - You can remove this comment and everyone can whitelist me from appearing in future posts.
Good advice from Warren, after the last run I got left holding a few worthless bags. Volume is the key to profits IMHO.
hey,,,@cicbar,,Whatever your chances is is not bad either. So I'm great on your arguments.
But you should not be too greedy to lose all your money
Great tips. The hardest part that most of us deal with is not selling until the price has dropped for 2 days. Human nature and our fears sometimes encourages us to get out right away. Look at all the people that stopped investing and pulled their money our during the last recession. In reality that would have been the best time to continue to invest as the market has rebounded and the economy has been good.
Thanks!
Solid advice about profit, nobody ever went broke taking profit. Id rather take some small profits and miss a huge pump than take any loss.
I will also NEVER SELL AT LOSS.. lol
Sir,nice trade highlights. Actualy i like your honest policy.You have posted yet another great post, i am wating sir. Thanks.
Hi there!!! great post, that is a great opportunity with cryptos, thanks for sharing.
Good luck!!! have a great day
I like Warren's quote, I just wish he tried to understand tech and cryptocurrency companies and investments. I bet he would have valuable insights.....oh well
Thank you for the useful information and experience of the Cripp Trade you share with us. I agree with you that there is always a great risk of losing if you do not follow the market properly and be very ready to change the course.
@cibar Having a predefined profit target (and loss) before taking a trade is a good idea too. I do like the fact you never sell at a loss if the reasons haven't changed. This helps with developing patience.
Thanks!