Fred Krueger is serial software entrepreneur with early career, Prop Trading experience on Wall Street.
Krueger did a personal study on the outcomes of short-term trading Crypto Vs HODLing Cryptocurrency, Bitcoin specifically. His conclusion is similar to my personal experience but in an actual study. A dramatic statement in the article linked below:
“the (Bitcoin) HODLR still beats the Trader after 5 years, even with the trader completely skipping the carnage of 2018!”
Here at LOTM we describe the long-term holding of Crypto & Equities as “managing the position” over time. Tactics like, dollar-cost-averaging (DCA), and Tax Management are major factors. If you are a successful trader – short-term capital gain taxes are a big drag on performance.
Having said HODLing outperforms Short-term trading, we would like to add that we pay strong attention to Over-bought / Over-sold values and in Money Flow into the asset or out of the asset you own or trade.
Enjoy – we highly recommend the article:
Moving averages and Bitcoin, by Fred Kruger
A study of trend following BTC using simple moving averages
Tips for Traders:
So, you read the article, and you are committed to a trading approach to the market. What can you do to increase your odds of success.?
Three items will increase you profits:
-
- Structure – Your Trading Policy
- Discipline – Following Your Plan
- Record keeping – Know Your Performance Score
Keep a record of your trades.
How many of your trades are winners – How many are Losing trades. Know yourself as a trader!
What is your average gain and what is your average loss?
What trading strategy or tactic did you do on each trade?
How / What can you adjust what you do, to increase your winning trades and size of gains while reducing the number of losing trades and the amount of each trade’s loss?
Develop a structure that is repeatable / recurring.
Only after you develop the Science of Trading, can you add the intuitive aspect of the Art of Trading.
Adapt when what you do, stops working! The market is always changing and evolving.
Be aware that you are also changing and growing or aging. These are factors not all of us don’t spend that much time considering. Considerate.
LOTM is here to help you.
LOTM Research & Consulting Service
* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
Please refer to our web site for full disclosure at www.LivingOffTheMarket.com ZTA Capital Group, Inc.
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