How much can a novice investor earn from trading? Part 38. 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

On November 28, on the EXMO exchange, we opened a long position with a volume of 0.1 BTC from the level of 4100.00 USD with the goal of growing to the 50% fibo area (5100.00 USD). During all this time, the BTC price was only able to break through the 23.6% Fibonacci level and set a maximum at 4583.18 USD. On Friday, November 30, when the pair broke through the support of 23.6% fib (4393.84 USD) and dropped to the “breakeven point”, we were forced to close our position and sell 0.1 BTC at the rate of 4100.00 USD per bitcoin. 

As a result, the amount of 408.97 USD was credited to our trading account (1.025 USD - 0.25% EXMO exchange commission for selling 0.1 BTC). Let us remind you that when entering a long position we spent 410.82 USD. As a result of a failed attempt to make money on the correction, we lost about two dollars, which are the commissions of our trading platform.

After we closed the position, the price of BTC was in a sideways range for some time, but on Saturday it made another attempt to overcome the resistance of the 23.6% fibo level. Judging by the rollback, this attempt was also unsuccessful. Whether there will be another bullish breakout today remains unknown. If the market resumed its downtrend, then our actions were correct. Just in order to avoid losing on commissions, we needed to exit the position not at the price of 4100.00 USD, but a little earlier, when the price had just reached the level of 4120.00 USD on a decline.