How much can a novice investor earn from trading? Part 23. 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 talk about trading according to the forecast for September 24 and 25. article dated September 24, 2018 stated that as a result of the decline in the LTC/USD pair, the price would reach $55 per light, and in review for September 25, 2018 we wrote that the LTC price will recover to the fifty percent Fibonacci level, which is at 58.22 USD. 

Immediately after the publications on ForkNews, we went to the Binance trading platform and checked the current price of Litecoin. The market price at that time was 55.90 USD. We place an order to buy 3 LTC at the rate of 55.00 USD. The price gradually decreased, but could not yet reach the level of 55.00 USD. Having left the order unexecuted, we decided not to monitor the progress of the auction for now. Closer to lunch, we received information that our order was completed and 3 LTC were credited to our trading account, and 165.00 USDT was debited for the purchase of 3 LTC and 0.0129 BNB - Binance exchange commission 0.075% (equivalent to 0.12 USD)

Based on the forecast level of LTC recovery indicated in the article, we must place another order to sell 3 LTC at the rate of 58.22 USD. Having completed the necessary manipulations to place a limit order to sell, we leave the trading terminal with some anxiety in our souls. Late in the evening we checked the price dynamics. The pair came close to the forecast resistance level, but never tested it. The maximum price value was fixed at 58.16 USD. Our sell order is still hanging unfilled. Today during the day we are nervously watching the price fluctuations of the LTC/USDT pair. At the time of writing, the daily high is set at 57.99 USDT. 

There are several options for our further actions.

Since the forecast was not fulfilled with the accuracy of a Swiss watch and our order to sell three litecoins remained unclosed, we can close it forcibly at the market price, which is currently 56.97 USDT. To do this, we need to delete our sell order and place a new order at the market rate. In this case, we will receive an income of slightly less than 6 USD. 

If we continue to wait for the execution of a sell order at 58.22, then if the market reaches this level, our income will be a little more than 9 USD.

Now we need to decide what is better - a bird in the hand or a pie in the sky.. Based on our application volume, the difference in income is insignificant. And yet, given that the price is in the consolidation stage, a retest of the 50% fib resistance level, which keeps the LTC price in a sideways range, has a fairly high probability. Therefore, for the purity of the experiment, we leave the order open and wait for it to be executed. 

Read about the results of our trading in the next Sunday publication.

P.S. 

When the material was being prepared for publication, the Litecoin price reached a maximum of 58.54 USD, and the sell order was executed.