How much can a novice investor earn from trading? Part twentieth. Trading (continued)

We continue the series of publications about trading in order to understand in practice how much a novice investor can earn using only the forecasts published on our website. To understand how useful they are, we decided to conduct an experiment and simulate a situation in which a person who only knows about trading that he needs to “buy cheaper and sell more expensive” tries to earn additional income in his free time from work by investing part of his funds in cryptocurrency trading

In forecast for 09/13/2018 it was assumed that if the bulls strengthen their presence in the market with larger volumes, the price of Litecoin will be able to break through the resistance of 53.44 USD. 

Since Thursday, we have been closely monitoring market volumes and preparing to make a purchase. Insufficient information on the target level of the recovery that had begun kept us from entering the trade. 

The next forecast dated September 14, 2018 confirmed information about large purchase volumes and a target mark appeared for the level to which the Litecoin price can recover. It was decided to test the theory in practice and make a profit on the short-term price recovery, which began after updating the annual minimum at 47.05 USD. 

After we entered the Binance trading platform, Litecoin set a maximum at 55.80 USD and was declining slightly. The buy rate was 53.50 USD, and the sell rate was 53.70 USD.

We decided to buy from the support level of 53.44 USD and sell LTC as soon as the price reached the average price level, which was approximately in the area of ​​58.00 USD on the eight-hour chart. As a result of an operation with a volume of 3 LTC, we can earn about thirteen dollars.  

Trading against the trend, on recovery, is very dangerous! Therefore, it is necessary to choose the target level carefully. In this case, it is important not to close the deal at the maximum (as they say “at the highs”), but to exit the deal in advance before the recovery ends and the trend continues. Any delays are fraught with losses.   

We place a pending order to buy 3 LTC at the rate of 53.44 USD. We are waiting for its execution... Within five minutes, the purchase price drops to 53.44 USD. The buy order has been executed! 

Our next step is to place a pending order to sell 3 LTC. We decided on the exchange rate - 58.00 USD. While we placed a sell order, the purchase rate dropped even lower, to the level of 53.00 USD. Monitoring further course dynamics takes time and nerves. When we were convinced that the rate had stopped falling below 52.83 USD and began to show signs of recovery, we closed the trading terminal and stopped tracking the LTC price. 

Late in the evening, on the same day, we received a sound signal that the transaction had been completed. The order was executed at the rate of 58..00 USD, resulting in 174.00 USDT credited to the trading account. If we subtract from this amount the amount for the purchase at the rate of 53.44 (160.32 USDT was spent), it turns out that in half a day we earned 13.68 USD (minus the 0.075% commission that was deducted from our BNB deposit). 

How much did we lose on commissions? Let me remind you that on the Binance exchange the commission on our transactions is 0.075%. Thus, when buying, 0.12 USD was withheld, and for selling - 0.13 USD. Only 0.25 USD! I love Binance for low commissions!

In conclusion, we note that on the Binance exchange, on this day the high was set at 59.00 USD, after which the price rolled back to the area of ​​56 dollars per light.