Daily crypto update - we're bubbly again (11th Aug '17)

I completed a couple of trades this morning:

  • NEO: sold half my remaining position for a profit of +663%
  • Bitcoin: NEO sale was into Bitcoin, sold half into Fiat and the rest I am holding as BTC

I am settled in Spain after my epic 2,500km drive, I've had a good nights sleep and I've awoken to NEO making another massive wave up. Those who read my previous posts will have seen that I sold out one of my late positions in NEO for a profit of +140%. I knew there was another potential wave up, but as my goals have changed to using crypto as a means of living, it is important to take money off the table. I explained why I took money off the table here.

NEO exploded again last night and this morning, hitting just short of $42 where it then dropped back down to around $30 and is now bouncing around in between. I sold half of my other NEO position at $35.81, some $7 dollars off the top. It is quite hard to sell at the top because firstly it is hard to spot and secondly the last wave up and subsequent drop are always fast. Either way, I was asleep. Yes you can use auto sells but I don't, I'll explain in a post later where I will be explaining why I don't day trade and how that affects my strategy.

So the position I sold in NEO was huge. If I had held out earlier in the week, then it would have been even larger. I could also hold out more now. As I have said a few times now, I am always happy to take money off the table and never beat myself up with hindsight. I make the best decision at any time with the information in front of me.

NEO has been great for me but my strategy requires stable growth and twice this week it has become my largest holding. I don't want NEO as my largest holding for the same reason I don't want Ethereum as my largest holding. Ethereum made significant gains this year but also bounded off $400 down to $150. It doesn't matter where NEO peaks in the short term, it will retrace. While quick spikes are great but stable growth is my goal.

Bitcoin is now my largest holding and will stay that way for a while. 

I am long term bullish with NEO though. I think even if it dips now it could easily break $50 this year, even $100. Being seen as the Chinese Ethereum, it has a great opportunity of becoming a top 5 coin by market cap. Crypto investors love a fast moving coin so this could go further, and if it does I still have a position in the game, and if I spot a new entry point, I will take it.

Regarding the rest of the market, I'll be honest, I have been totally distracted by NEO. There are a couple of other coins which I have missed out on which have made great moves:

  • QTUM: has over tripled in price in less than a month. I wasn't even aware of this but do not know much about it. I have added it to my watch list to research and look out for an entry point.
  • IOTA: tripled in price too. I'll be honest, I just don't understand this coin and am taking a back seat.
  • OMG: up over 1,500% in less than a month, congratulations if you got in on this.

The thing is you can't catch them all. I don't have time to research every coin. I was tipped OMG, but I missed the boat. If it retraces down, then I will look for an entry point but I won't chase.

August is proving to be one hell of a month. I am up 36% and am close to reaching a personal ATH for my portfolio. If I hadn't of taken money off the table, I would be there. Conversely, if I had taken money off the table according to my original strategy back in June, my portfolio would not have dipped as much as it did during the correction last month.

If you have a strategy and it is working for you, then unless you have a very good reason not to then you should stick to it. The odd gamble may pay off, but if it doesn't, you will only kick yourself.

Across the rest of the market:

  • My Tier A investments such as Dash, Bitcoin and Monero are rising in range and showing strength.
  • My other investments are a mixed bunch. The majority are up, but some are stagnating. I think there is a case of the Emporers New Clothes with crypto and investors are chasing the next +1,000%.
  • My investment in BAT has nearly recovered. My entry on this was stupid, while I like the project I just bought without analysing the charts. I dropped as low as -70% at one point. This is one to watch I think.

I am going to ride out August and see how we finish and then look to consolidate my portfolio. We are bubbly again, but I think if we are in another wave up this one could be like one we have never seen before.

As I consolidate my portfolio, I am going to trade back to a combination of Fiat and Bitcoin. If big money comes in, as the news keeps telling us it is, I want to own as much Bitcoin as I can.