Daily crypto update - NEO saves the day (10th Aug '17)
Sorry but this will be a slightly shorter Daily Crypto Update than normal as I have just finished a 36 hour, 2,500km drive from England to Almeria in the south of Spain because my Dad won't fly. I have had around 5 hours sleep at a service station in France.
I need a shower and a beer!
As I mentioned before, I don't always trade on holiday; sometimes I think it is important to take a break and spend time with your family and kids (if you have them). Also, I don't always have the ability to keep my phone charged so that you can check the prices every minute or want to be running back to the hotel room to make trades.
I had a lot of time to think about content on the drive and am working up a couple of ideas:
- Why I don't day trade (which is a lifestyle decision rather than just investing fundamentals)
- Why holding isn't a strategy (in that you probably need an exit point)
I'll work up one for tomorrow alongside a better daily update.
Anyway, as expected predicted my portfolio took a dip yesterday, around 5% on the back of 8 days of consistent gains. I expected the market to run out of steam and this started to happen but there were no signs of a big sell off, like May 27th -32%, June 27th -22% and the big sell off during July.
Movements within the 5% range do not worry me, even up to 10% I am not overly stressing. It is the larger drops and rises which give me a reason to start thinking that we are bubbly and might see a big move down. As such I think we are nicely back in a solid bull run.
The 4% drop recovered to a near 3% gain with recent heroes NEO, Wings and Waves all saving the day. Reflecting the importance of a diverse portfolio.
As I suspected NEO has hit another wave upwards, which is a shame as I sold half my portfolio a few days ago but I am not beating myself up as I locked away the profit into Fiat, with gains that Wall Street would love to make.
For me, now that I am trading as a way of life rather than an investment for the future, I have targets to hit each month to achieve the draw down income I want. Yes NEO went up, it also could have dropped. By selling half my position, I was able to lock in profits but still have a position in the game to enjoy the rewards of today.
So what now for NEO? If we are at the top of an Elliott Wave then we may expect to see a retracement but I am going to hold out, for now, see where the trend takes us and make a decision later. I suspect NEO might go on the kind of bull run Ripple went through earlier in the year. Possibly over hyped.
This leads me into one of the posts I am going to write. My strategy has to be one which allows me to not be online for a couple of days and not worry too much. Day trading and making quick margins requires time to look at the market regularly, spot opportunities and react quickly. I don't need this in my life. My strategy is designed to allow me to draw an income without the stress of day trading.
Anyway, I hope you are all trading well. Some of you may have dipped over the last 24 if your portfolio is missing some of the few which made gains.
Any questions then please give me a shout.
Right now I need a beer.