When I started trading last week I felt that I had a pretty good handle on what I needed to do if I were to make any money at day trading in Bitcoin. I read what seemed like hundreds (though it was probably only tens) of blogs, training and informational web sites on how to avoid the pitfalls. From those I devised my own strategy on how I would trade and I started small, trading with just £100. If I lost it then OK, no one wants to lose £100 but it wouldn’t be the end of the world.
All started well. I consistently made between £10 and £30 per day just using the graphs and technical analysis to determine when the price was low to buy and when it was high to sell. So I felt confident to up the anti a bit and I starting trading with £1000 and again, all was well but now my profits were much greater as I was trading with more money. My profits were up to over £600 after just 3 days… an average of over £100 per day. I have to admit to feeling that I was truly on to something here.
I knew from everything I had read that nothing in trading, bitcoin or anything else, is 100% guaranteed or safe. My head knew that. But my heart and emotions were excited by the potential and I took my eye off the ball for about 1 hour. Unfortunately, I had just bought at what I thought was a low and it turned out that just after I bought someone, somewhere int he world, dumped a load of Bitcoin onto the market and instead of going up from a implied low it plummeted down. So I was left high and dry with Bitcoin which I bought at a higher price and which if I now sold would make a significant loss. No worries. I’ll just wait until the price recover and that is what I am doing so I don’t feel all is lost just yet. But I have lost my liquidity with all my money (or what I am prepared to trade with that is!) tied up in expensive Bitcoin so I do not have the ability to trade on the subsequent ups and downs that followed the drop.
So quite an exciting and eventful introduction to trading where it is obvious that if it is not to become just glorified gambling then I have a lot more to learn!
My heart is saying just add some more cash to my trading account to get some liquidity back so I can start trading again but my head is saying no… I am not ready to increase my exposure just yet. So until I feel a lot more confident, and gained back my liquid funds by selling my “expensive” Bitcoin I am not going to be active. I shall do more research and watch the trends and graphs and see if I can see where I went wrong! I am not giving up on this. It has a lot of potential. I just need a set of trading rules that doesn’t over commit my funds and I will be off and running I am sure.