My daily routine for trading is very simple:
- The first thing I do is open my spreadsheet which tracks all my investments. I update the current price for each coin, which, in turn, updates all the balances, profits and margins. I then create a new row in the daily tracking sheet which I also update to show the profit/loss for the previous day.
- I look at the charts for each coin to spot any specific trends.
- I go to Reddit and scan through the news for all the coins I am following to see if there is any news which I think will affect price, both positively or negatively.
- I go to the Telegram app on my phone and look through the chat logs for all the coins I am following for any interesting news.
- I read the news all cypto related news from my aggregated source on Flipboard.
- I keep notes about anything of interest.
Those three tasks take around 30 minutes and give me a good idea of the market, price movements and news I should be aware of.
What I am specifically looking for is news which hasn't been priced in. As an example "Syscoin on KCNews!". Syscoin is one of my fav coins at the moment and one of my tips for 2017. I invested 3 weeks ago based on news relating to Microsoft integration. My view was the price was low and invested 1.2 btc into it, in the three weeks since it has grown 110%. I don't believe this is an unwarranted pump as I have read the website and the white paper behind the coin and like the business case. This additional news supports a wider potential breakout and upside for the coin and therefore I believe it's current market cap of $28m is very low and could achieve a +$50m market cap, or even higher by the end of the year.
With this news, I will make a trade and increase my investment. I am going to transfer another .5 btc into the coin. While Bitcoin is on one hell of a bull run at the moment I believe that Syscoin is going to deliver much better % returns. There is no guarantee, Syscoin could drop and my investment fall but as I am hedging with the entire market then it is a trade I am willing to make.
Once I have completed my trades I am done for the day and will make no further trades.
The reason I won't make any further trades is that they will likely be reactionary to news and thus emotion based. While there may be other volatile market movements during the day which you could react to, I am not a day trader and therefore my investments are always based on longer term projections.
What I don't do is:
- Care about any opinions which say "this coin is about to explode".
- Care about any opinions which say "this coin is about to be dumped".
- Chase any price surges which I have missed the boat on.
Caring about any of those three things will lead to emotional decisions. They can lead to trades where you are buying on opinion and emotion rather than market or business fundamentals. Here you can find yourself in a trade which has gone bad, trying to make a quick buck and panic when the market moves against you.
Remember the strategy I use is based on holding and belief in the growth of the entire market cap. Of the current $38bn market cap, I am invested in coins which cover 95% of that. If the market grows then my investment grows. If blockchain grows my investment grows.