How much can a novice investor earn from trading? Part eleven. 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

Today we will describe the trading that was carried out on Monday, according to ForkNews publication dated 08/06/2018. The article stated that on August 6, the recovery phase of the Litecoin price ended and began to decline to a new annual minimum, located in the area of ​​70.00 USD. 

We take what is written as an immediate guide to selling the 3 LTC we have, which we purchased last time at a price of 72.50 USD

At the time when we were able to submit a sell order on Monday, the price of Litecoin was at Binance exchange was in the range of 74.88-74.97. Without wasting time, we billed the entire amount - 3 LTC at the rate of 74.85 USDT per light. After the order is executed to our account, which has a balance of 15 USDT, the amount from the sale of three litecoins in the amount of 224.55 USDT is credited. In total, the total account balance is 239.55 USDT. 

We would like to immediately draw your attention to the size of the commission on Binance. Previously, when paying commissions with the exchange's internal cryptocurrency (BNB), a 50% discount was provided. 

In order to receive such a discount on commission costs, we specifically purchased 0.0615 BNB to pay for the services of the Binance exchange. Thus, we did not pay 0.1% of the transaction amount, but only 0.05%. 

Now the discount amount has decreased from 50% to 25%. Therefore, the commission amount is 0.075% of the application amount. As a result, a fee of 0.0115 BNB was debited from our BNB account, which in dollar equivalent is approximately 0.14 USD. 

Although the amount of commissions has increased by 25%, it is still significantly less than on the EXMO exchange, which makes it possible to make transactions on Binance much more often, without significantly increasing the expense portion of the deposit. 

Let's summarize the transaction.

We sold 3 LTC at the rate of 74.85 and as a result, we have a balance of 239.55 USD on our trading account. What did we earn?

Last time we bought 3 LTC at the rate of 72.50 and sold at 74.85. The result is an income of 7.05 USDT (74.85-72.50=2.35*3=7.05)

Today, August 8, the Litecoin price reached 64.00 USDT. If we had not sold our deposit on Monday, which was then valued at approximately $224, then at the current moment its value in dollar equivalent would be approximately 192.00 USD. We can say that we stopped losses “in time”.. 

Now the main task is to closely monitor the further dynamics of the LTC/USDT pair. It is necessary to choose the moment when the price of Litecoin begins to rise and then we must promptly buy an asset that is gaining value.