To all the 💎🖐 here's to you !
Wow, what a ride. I started out with charting, uncertain about what all the technicalities mean, learnt, then I focused on fundamentals, but then questioned those fundamentals. Looking back, there are a few things I have learned during this crazy unpredictable cycle:
1) Don't trust the news
"XRP is up because of this, XRP might drop because of that..." BS.
My golden rule: If the reason comes AFTER the price action, it's both useless and probably bs.
2) Trust your gut
Now this is a tricky one, because maybe your gut isn't as reliable. But you would know from your past experiences weather or not you have a reliable gut. If you don't, time to start exploring it.
3) Don't freak out
Maybe you bought at 70c and then XRP went back to 40c... No need to sell at a loss. This is not trading advice, let me share with you what I do.
I'm talking about NO LEVERAGE trading.
Personally, I like to adjust my SL so that they are in profit. For example, If I bought at 80c, I'm not going to set a SL for 75c. Instead, if the price moves down, I will just patiently wait and open lower positions. This is ideal if you use DOLLAR COST AVERAGING, meaning you don't spend your entire capital on one position. So lets imagine the price now goes to 40c. Now because you still have free capital, you can continue opening multiple lower positions spread out over the range. And when XRP moves back to 80c, and then lets say 85c, you have patiently waited out your higher position that you can now sell for a profit, or set a SL within a profit margin.
This style is somewhat swing trading and somewhat hodling. Note that this style DOES NOT WORK in price discovery phase.
4) Don't be afraid to BUY
Considering whether or not the price is in price discovery , don't be afraid to buy. It can be intimidating to see tat the price has gone down lets say 10%,20% or even 50%. Once again, DOLLAR COST AVERAGE. Multiple positions, multiple profit ranges.
5) Have a GOAL
Why are you buying? There are no wrong answers. Even "gettin rich quick" is cool. But then make sure to adjust your trading STYLE according to your goal.
Once again not financial advice, but let's look at 2 scenarios:
A: Say you have looked into buying coin 'x' because it's hyped and you think it may go x100. Nothing wrong. BUT this is a SWING TRADE. You cannot SCALPT that trade. In other words, you have to buy low, set a target, and sell high. You cannot, with the goal in mind, buy low, sell everything if it's just +5%, then buy again and sell again etc. That doesn't work with your GOAL.
B: Say you looked into buying coin 'x' because you believe this will create generational wealth. That's great. But now the coin x5 and it's tempting to swing. NO. You have to HODL that coin. Unless you changed your mind about the fundamentals, stick to your GOAL. Constantly changing your goal and changing your style will result in CHAOS. There is no growth and no development in chaos.
You can have MULTIPLE GOALS for MULTIPLE COINS. But have a plan and trade accordingly.
I don't personally like the term " Day Trading". Because you will end up making trades just to make "a trade a day" and perhaps if you have waited a week, your profits are much higher. Or lower. But personally, I think trying to force a trade a day is unnecessary.
I have no price target for XRP, it is extremely unpredictable and volatile. But what you can remember is that it is NOT at ATH , meaning it is NOT in price discovery .
Also remember tat XRP is NOTORIOUS FOR PUMP AND DUMP. Yes maybe this time is different. But, that statement has proven to e true for a 100% of cases. So that is what you can rely on until proven otherwise. How well this range holds will be a great test for XRP.