On the chart you see nice bounces on retraces during downtrend. We are in a small one now which could end up quite a bit bigger as 10400 is not out of the question just yet and then 11300 or so before an almost sure turnaround. But even on a run of 8300 to 9500 there was a bunch of money to be made on massively oversold alts. I am interested in hearing about any strategies you may be employing in this current market and will share a couple that I've used below.
1. I mostly stay in cash and lean towards a daytrading in and out for small gains style as I don't trust we are ready for take off towards ATH just yet and at best are on a larger degree B wave with A down completed at 5900. This hurt me on the 6to12k str8up run as a bunch was left on the table but I did make safe profits largely due to the strategy below...
2. Following big drops like the one earlier this week (and of course down to 6k) i like to BOMB my entire roll into massively oversold spots and give the market a day or two to explode up and watch for reversals like a hawk. Then once it starts to turn I take back all my money plus half the profits and keep the rest in the coins I bought (unless I really like nano for example and keep all profits in coins).
The reason I bring this up is because many are predicting a drop to sub 6k which very well may happen. However we will get a bounce at 8000-8200 (0.618 retrace). We may get one at 8700 really. We will definitely bounce if not fully reverse at 7500ish (0.78 retrace). And a bounce at 6800down to 6k could be violent as well.
On limited rolls, it isn't sexy to throw 1k in a coin and scoop $150-300 profit which you 'invest' in that coin via your free coins...which turn around and lose a bunch of value immediately following the pump u earned them on, but it is one way to go. WHAT IS YOUR FAVORITE WAY? Really interested to learn what others are doing and how I can get better.
I will mention that due to , alts are generally more oversold and spike more but plummet down quickly as well so must be watched closely. In hindsight, I'd go allin on alts after a big drop and quickly (within 12-24hrs) move the profits into BTC which both allows me to grow BTC more rapidly and puts my money in one spot where I can more easily exit the market or just trade against BTC until a reversal presents itself. Looking back at the yellow line retrace bumps on the chart, this strategy would have made a killing, grown your account slightly and netted you a bunch of free coins. I certainly didn't play it to perfection but even with getting out too early in a lot of spots and leaving profits on the table, profits were made.
Let me know how you trade or what you think of this approach. Like, comment, and hopefully I will have enough rep points to comment on some of the wonderful ideas I see on TV too.