Buy and hold is a hit and miss method, sometimes it works... B&H is easier to do but brings average returns, if you 'work' something, this takes more effort and skill and brings better rewards. There is more depleted emotion living through large drawdowns, horrible feeeling of large amounts of money disappearing. The mistake many traders make (not talking about you) is they have regrets within trading. Regret they didn't exit, regret they did exit, regret they bought, regret they didn't buy. It's the regret they have that they exited and price goes against them which is the killer for them, hence buy and hold.
Position sizing. My high-risk trades (i.e. Perp futures, meme coins) are limited to no more than $15k risk capital Drawdowns or lost profits? I'm used to it, I have had way too many to count in the past 10 years. I know you said you were not talking about me, but I can relate to the psychological effects and how to deal with them And yet many ET who missed out on the greatest opportunity for wealth creation that is Bitcoin and cryptos, from $0 prices or near $0 on many coins, btc, eth, doge, etc will say we got lucky They don't have the emotional strength to hold on through drawdowns or sudden big upmoves On Pepe, many people sold early, it's all over Twitter, the woulda coulda shoulda have had 6 figures or 7 figures if they just held Same with early Bitcoin buyers or miners... Same with early Ethereum ICO participants who sold too early, $500 to over $3.5M currently
I trade a truckload of penny stocks, currently holding maybe 30....dunno, I got around 60 positions going atm, cant be bothered counting them all. But I do know penny stocks get hammered severely and the majority atm underwater. Trading is a funny game, just one penny stock major winner can erase all those losses and has done for me. However, these days I wont allow something to runaway losing anymore.
Penny stocks don't trade 24/7/365 and liquidity might not be so good, so.... Not sure if you'll be interested in crypto meme coins instead, lol. While it's meme szn, the volatility for traders is great I posted on my crypto macro thread that I got into Ben, the info actually hit my Twitter timeline a few days ago but I still missed the presale, anyway.... I'm in a Ben liquidity pool so it's half as volatile as the Ben token, but from my observation, in the 3 hours that I owned Ben, the token has gone down 20% and up over 10% from my entry Volatile af Ben is up over 4000% within 2 days of release, currently, $1k presale investment would be $40k right now https://dexscreener.com/ethereum/0xdce93ed9ae7c53143e19cf799d156b72d1cc2777
I can't because I trade through an IRA type account, and although it might be possible, it could get messy with the accounting tax side.
In regard to the penny-stocks... as my portfolio is primarily in LONG positions & meant to hold positions for a long time, I do avoid penny-stonks for a good reason. They are always far over-priced. Trying to get in at a good discount to NAV is like winning a lottery. The reason is, every ape likes to pile in on penny-stonks because it feels to them a cheap-way to get in and hope to lit a lottery. It doesn't work that way. They are shit stonks at the bottom of the barrel for a reason. When this was pointed out to Eugene Fama as to disprove his flawed 'Efficient Market Theory'... of course the answer was... EMT doesn't apply to penny-stonks. They are a 'special' exception. lol I suppose if you want to be a youtube guru and run a scam course... trading low-float pennies can do wonders when you have a team of followers behind you. Something that slowly... others are only lately catching onto.
6.5 hours into the Ben crypto meme... $2300 invested into the Ben tokens worth over $4k now and the yield farm $3k worth over $4k now There is no leverage on this I did not get in on the presale... A whale turned $50k presale to $2M cashed out right after release I got in after the release and I think Ben can hit $200M market cap which is another 800% upmove from here.... NFA
It looks like Ben has tripled in price since my entry. I will add another $3500 to the token position (left image, stored in in the wallet) There is no leverage on this position Will leave the yield farm alone, it's producing a nice yield over 10% in less than 24 hours from initial risk capital of $3,000, but this yield is misleading as the rewards are in Ben and Eth tokens, it benefits from the rise in price of Ben tokens NFA On the difficulty to visualize price since there are 420.69 Trillion tokens (lol)... the price works through elimination of leading zer0's after the decimal point Ben killed a zer0 last night so there are now 6 leading zer0 instead of 7, similar to a $500 stock going to $1,500 (from 3 digits to 4 digits) I just need Ben to kill 5 more zer0's then I'll be a multi-billionaire
Closing the position here, good profit$, and after taking the picture, the price of Ben moved up 10-15% so got additional $ on the swap Ben team are on a war path with Pepe community, fud storm back and forth I think Ben will continue to go up but not getting good vibes from the team Ben and the smart contract is not renounced which means Ben can rugpull dump 90% of the tokens and crash the price to $0 To be fair to the Ben project, the people involved are all doxxed so rugpull is unlikely, so they say... Pepe smart contract is renounced, but devs were and are anon, rugpull is not possible, though