Day trading is not for me. Even with the right tools and knowledge, not all of which I even have, it think it requires too much attention and is too stressful. While I'm able to recognize patterns and make small amounts of profit if I'm careful, I've found that one or two careless trades can quickly wipe out any previous gains of the day. I haven't incurred any net loss in my venture into day trading but I haven't made any gains, either. It simply isn't worth the trouble. This is particularly the case because to avoid the obligation to pay taxes one cannot exchange cryptocurrencies into official currency. At the end of the day, you have to stabilize the situation using stop-losses and that can be unrealiable. Thankfully, fees on exchanges are quite small. I think I could make some money out of day trading if I put my mind to it and learned the proper use of all the tools but it is much better to devote the time to my job. My hat is off to those who can make a living out of trading.
For me, I think the strategy with the highest return on investment is a steady buy-and-hold with an eye towards a long-term goal. Technical analysis is best used to decide the entry points, and finally, the exit points. Keeping abreast of cryptocurrency-related news is a must as the market shares and prospects of each currency are in constant flux, so rebalancing your portfolio is necessary from time to time.
Kudos to you sir. Most people won't admit when something is not working for them or if its just not for them.
Day trading is definitely a time commitment, especially working through any roadblocks in your trading.
The scenario you just described is one of the biggest issues for traders. Make money on some trades, wipe it all out with one bad one.
It was the main topic of discussion with the trading coach I interviewed on this week's MSP Waves Music and Money show.
If anyone has any interest this is the recording: Music and Money Show
And I agree, long-term buy and hold using charting to find entry points is a fine strategy for cypto in the current environment if one does not have time to trade actively.
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According to Finnish Tax Authority, an exchange of cryptocurrency for official currency, goods or services is a tax event. Cryptocurrencies may be exchanged for other cryptocurrencies with the profit being tax free. Any profit from trading between fiat and crypto is taxable but no loss is deductible. Thus controlling the day trading process by staying completely off the market during the night is legally impossible.
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Yeah. Day trading helps with entry and exit point. But in the last 48hours i saw a brief technical analysis of trading and it was a good one. Now i do check the technical analysis details everyday to know if to buy or stay in cash. Luckily, its always posted on steemit blog of the person everyday.
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I totally share your opinion! It feels like daytrading doesn't give a lot of satisfaction and it doesn't really help you to develop yourself in other domains.
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Day trading does help develop an understanding of how the market works. It is also teaches a thing or two about risk management. I've just found it too time consuming and stressful to justify the benefits.
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Yes, it teaches you a lot of things in the domain of daytrading and markets. I think you interact much less with people in real life, which is also important to me
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