CRYPTOCURRENCY PRICES ARE DROPPING
COINMARKETCAP CHART
Early in the morning, breaking news release that Chinese government is stepping in to enforce regulations on ICOs. This caused a big panic dropping cryptocurrency prices where the whole market dropped from high 170 billion USD to 145 billion USD (~15%).
https://www.cnbc.com/2017/09/04/chinese-icos-china-bans-fundraising-through-initial-coin-offerings-report-says.html
Although my portfolio has took a hit (about the same percent, 15%), this creates EXCELLENT trading opportunities if you're willing to go along this big panic dive. Here are some trades I took.
Yellow line = base
Red X = sell point
Green X = buy point
TRADES I'M TAKING
BTC/USD
Reason: It's BTC and price fell over 10% from the high of 4950. I took a nibble here and ready to nibble more at 4k. Then I'll buy more if it cracks that.
Expected return: 6%-10% on nibbles
ETH/BTC
Reason: It's Ethereum! This should be on everyone's first coin to buy up. It's the safest of all altcoins and we are now getting a big discount as it's dropping at a faster rate than bitcoin (from fiat perspective). I plan to buy more in the high 50s if ethereum keeps dropping.
Expected returns: 10-12%
NEO/BTC
Reason: As NEO has gained popularity in the past week and based in China, this ICO took the biggest hit of them all . I see this coin surviving through this panic, so I'm taking a nice trade and expect to return to base very soon. Plus I'm running a NEO challenge in my other blog, so can't disappoint my fans!
NOTE: A bounce already happened in NEO that I missed buying and selling up, so if further drop I'll buy more and sell on the next bounce. Otherwise, I'll wait.
Expected returns: 30%
QTUM/BTC
Reason: Another popular Chinese ICO that took a huge hit. Got this trade at a bad price as the bounce already happened early in the morning. I'm considering selling early around 300k satoshi. If this coin drops more, I'll buy more and sell everything at the third base
Expected returns: 8-25%
XST/BTC
Reason: Panic drop past base. Selling at base and above where consistent highs have been.
Expected return: 20-25%
POT/BTC
Reason: Lowest price it's been in the past two months. Expecting a big jump soon once panic subsides.
Expected return: 25%
BAT/BTC
Reason: Big panic drop, always respects base. A bounce already happened, so I need to buy lower.
Expected return: 20-25%
ADT/ETH
Reason: My favorite coin to trade, big panic drop. Sell order for half position already in process.
Expected return: 15%
DCT/BTC
Reason: Panic drop, lowest price in past two months.
Expected return: 15%
EBST/BTC
Reason: Panic drop, lowest price in past two months.
Expected return: 10%
EMC2/BTC
Reason: Waiting for next big pump. NOTE: Not part of Luc's trading method so no base drawn.
Expected return: 10-100%
DISCLAIMER AND CREDITS
Nothing here is meant as financial advice. This is just a strategy that I'm using as a cryptocurrency day trader. Please seek a duly licensed professional for any financial advice. Never forget, cryptocurrency trading is extremely risky and never invest more than you can afford to lose!
Thanks for visiting my blog and happy trading everyone. Let me know what you think in the comments section below.
Thanks for sharing your strategies and reasoning! You gained a new follower. :)
Thanks for visiting, and you're welcome! Hope this helps in your trading ventures sir
Thanks for sharing your strategy, I will be buying some of these. Have you researched though whether any of the tokens in here will be liquidated because of the Chinese ICO news??
I have not found a specific reliable source which lists any coins, but this would be a legitimate cause for concern. Until I see some definitive news, I'm holding my position. Neo is my biggest position besides ETH and BTC as I'm invested in that token....but from the info i've gathered (reddit, mainly) it seems to be in a safe position for now. However, first sign of trouble I do plan to pull out. Unfortunately, I won't have time to put any updates here so please trade with CAUTION. Trade only with BTCs and ETH if you don't feel comfortable.
All, we are seeing some bounces already and some of the sells have been processed. Next week, I'll revisit this and see what the results are.