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

Currently, we remain outside the market for Bitcoin and Litecoin, having transferred all our crypto assets into dollars. On the Binance exchange, the role of dollars is played by the USDT cryptocurrency.

In part nine of the publication about trading, we sold BTC and, having earned 25.00 USD, received an account balance of 771.41 USD. The last time we made a Bitcoin trade, the rate did not allow us to buy it in the amount of 0.1BTC. Now, as a result of a two-week decline, the rate has come close to updating its annual minimum. At the current rate, we can already operate with this volume of Bitcoin. 

Analyzing ForkNews publications for 08/11/2018, we conclude that the pair has not yet reached the reversal level and will continue to decline. However, yesterday, having turned around at the low point of 5995.75 USD, the pair recovered to the support area of ​​6427.16 USD. 

If this rollback had been included in the forecast, then by picking up 0.1 BTC at least at the rate of 6000.00 USD and selling at 6400.00 USD, we were able to earn 40 USD. But it was almost impossible to accurately calculate the magnitude of the recovery, especially considering that the rate has been declining over the past two weeks without any significant rebounds. And only professional traders can afford to trade against the trend, since the risk of losses in this case is much higher than when trading with the trend. Therefore, trading according to the scheme shown in the figure is high-risk and is not suitable for novice traders.  

The rest of the article talks about consolidation in a rather narrow range of $6090.00 - $5920.00. It is also impossible to make money in such a narrow range, which can last for a very short period of time. We can only stay out of the market and watch when the price reaches the bottom and shows signs of growth. 

A similar situation is now happening with Litecoin. It was possible to foresee a price rebound from the minimum of 55.15 USD, but it is difficult even for a professional trader to make money on such a rebound. You need to constantly keep your hand on the “Sell” button.  

The price can break through the recently established minimum at $55 at any time, and then we will receive losses from the operation.. In fact, trading losses are an integral part of trading. But deliberately taking risks in the absence of the likelihood of a high income is unacceptable! Consequently, for Litecoin we are also outside the market and expect signs of growth to appear.