08-18-2021, 01:56 PM
I have a investment cycle that works for me, and I'd like to share it with all of yo
<!-- SC_OFF --><div class="md"><p>Investing isn't that hard but it is time consuming. If you follow a particular pattern, you should be fine. There is one important factor in all of this, I don't do short-term trading, I only do long-term or once I achieved my initial goals that are clearly defined. </p> <p>How does this process work? Here is my investing cycle: </p> <h1>STEP 1: DYOR </h1> <p>This is the starting point if you are just starting, but I love to use this also as a Quarterly task where I evaluate my existing positions. </p> <p>The main goal is to research projects and coins. I usually stick to the TOP 200 projects based on marketcap. The main goal is to create a shortlist of coins that have some long-term potential. I use several sites for this process such as coinmarketcap, coingecko, reddit communities, searching google by finding trusted news portals, coins website, charts on exchanges, verified reports online etc. </p> <p>I never ever join any Telegram groups in order to do my DYOR, it's seriously affecting your ability to objectively judge the potential of an individual coin. </p> <p>The end result of this step is to gather and collect between 10 - 25 projects that have potential. Diversifying your portfolio is a advantage. </p> <h1>STEP 2: MAIN LIST </h1> <p>This is the second part, and it takes most of my time. I usually spend a couple of hours per day to evaluate all the coins that have been picked in step 1. </p> <p>This step requires some in depth analysis as I am targeting my focus on some important metrics and ask some important questions such as: </p> <ul> <li>Tokenomics and coin allocation, is it decentralized or centralized? </li> <li>Technology and scalability of the network. Can you effectively scale it based on the volumes? </li> <li>Security layers within the network. How secure is the network?</li> <li>Main use case and what challenge does this coin try to solve? </li> <li>Existing Partnerships - how good are they? </li> <li>Price expectations based on macroeconomics, what are the chances of potential market manipulations and possible rug pulls? </li> </ul> <p>Once I get detailed answers to these above-mentioned questions, I do my shortlisting. Usually, it ends up by choosing 5-10 coins which have met the above criteria. </p> <h1>STEP 3: FUND ALLOCATION</h1> <p>Once I managed step 1 and 2, the next step is ranking each coin from the one with the biggest potential and value towards the lowest. Let's assume that I have chosen 10 coins, and in many cases, 50%-60% of my funds are allocated to the TOP 3 coins equally while the remaining 50% or 40% are equally allocated to the remaining 7 coins. </p> <p>In this step it's important to establish a clear guideline how to rank these coins, usually taking in consideration all the answers acquired during step 2. </p> <h1>STEP 4: SET YOUR GOALS</h1> <p>This is important. How will you measure your success? Define in the beginning the desired outcome. I usually ask myself the following two questions which define my goals: </p> <ul> <li>What is my target value?</li> <li>What is the timeline - at what point and price am I taking out profits? </li> </ul> <h1>STEP 5: ANALYZE THE MARKET - INVEST DURING A BEAR MARKET OR DURING DIPS. </h1> <p>I avoid investing once the market is in an upward trend, such as in the middle of a bull market. Take time to analyze the market by doing some simple technical analysis. Trading view is a great example, you can analyze it there as it's offering a lot of valuable tools to do so. <a href="https://coinmarketcap.com/alexandria/article/how-to-use-tradingview-the-best-crypto-trading-tool-for-investors">HERE</a> is a great guide for trading view. </p> <p>If you can't time the market, it's not a worry, that is not easy to achieve, as it takes a lot of experience. I like to get into the market if the dip is more than 10% on a weekly basis or if the price is at least 20% below the last ATH. </p> <h1>STEP 6: DCA (DOLLAR COST AVEREGING) </h1> <p>This is a process of reinvesting into your existing portfolio during dips and bear markets. Define a strategy and a budget which you will invest into your portfolio during a defined period of time. </p> <p>For example in my case I am dedicating a fixed monthly amount which I will divert to my portfolio. I am waiting for a good timing within a month to enter the market and allocate my funds to a certain number of coins which I believe will perform better or which are undervalued based on the facts gathered from step 2 </p> <h1>STEP 7: TRACK PERFOMANCE AND EXCLUDE EMOTIONS</h1> <p>Track you coins on a daily and weekly basis. Don't spend too much time on it and try to avoid FUD and FOMO. The most important part in crypto is to exclude all emotions - always stick to your strategy and to the answers that you gathered during step 1 and 2. </p> <h1>STEP 8: EVALUATE AND UPDATE YOUR PORTFOLIO EACH QUARTER </h1> <p>A lot of things tend to change during a period of 3 months. I am usually having a Q session where I repeat step 1 and 2 based on new findings during that period. This may require some re-allocation within your account, or it may happen that you will exclude a certain coin in order to add a new one. </p> <p>This is my strategy, it is giving me good results and I hope this could help you all to build your own trading strategy. </p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/vjeva"> /u/vjeva </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/p6odna/i_have_a_investment_cycle_that_works_for_me_and/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/p6odna/i_have_a_investment_cycle_that_works_for_me_and/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>Investing isn't that hard but it is time consuming. If you follow a particular pattern, you should be fine. There is one important factor in all of this, I don't do short-term trading, I only do long-term or once I achieved my initial goals that are clearly defined. </p> <p>How does this process work? Here is my investing cycle: </p> <h1>STEP 1: DYOR </h1> <p>This is the starting point if you are just starting, but I love to use this also as a Quarterly task where I evaluate my existing positions. </p> <p>The main goal is to research projects and coins. I usually stick to the TOP 200 projects based on marketcap. The main goal is to create a shortlist of coins that have some long-term potential. I use several sites for this process such as coinmarketcap, coingecko, reddit communities, searching google by finding trusted news portals, coins website, charts on exchanges, verified reports online etc. </p> <p>I never ever join any Telegram groups in order to do my DYOR, it's seriously affecting your ability to objectively judge the potential of an individual coin. </p> <p>The end result of this step is to gather and collect between 10 - 25 projects that have potential. Diversifying your portfolio is a advantage. </p> <h1>STEP 2: MAIN LIST </h1> <p>This is the second part, and it takes most of my time. I usually spend a couple of hours per day to evaluate all the coins that have been picked in step 1. </p> <p>This step requires some in depth analysis as I am targeting my focus on some important metrics and ask some important questions such as: </p> <ul> <li>Tokenomics and coin allocation, is it decentralized or centralized? </li> <li>Technology and scalability of the network. Can you effectively scale it based on the volumes? </li> <li>Security layers within the network. How secure is the network?</li> <li>Main use case and what challenge does this coin try to solve? </li> <li>Existing Partnerships - how good are they? </li> <li>Price expectations based on macroeconomics, what are the chances of potential market manipulations and possible rug pulls? </li> </ul> <p>Once I get detailed answers to these above-mentioned questions, I do my shortlisting. Usually, it ends up by choosing 5-10 coins which have met the above criteria. </p> <h1>STEP 3: FUND ALLOCATION</h1> <p>Once I managed step 1 and 2, the next step is ranking each coin from the one with the biggest potential and value towards the lowest. Let's assume that I have chosen 10 coins, and in many cases, 50%-60% of my funds are allocated to the TOP 3 coins equally while the remaining 50% or 40% are equally allocated to the remaining 7 coins. </p> <p>In this step it's important to establish a clear guideline how to rank these coins, usually taking in consideration all the answers acquired during step 2. </p> <h1>STEP 4: SET YOUR GOALS</h1> <p>This is important. How will you measure your success? Define in the beginning the desired outcome. I usually ask myself the following two questions which define my goals: </p> <ul> <li>What is my target value?</li> <li>What is the timeline - at what point and price am I taking out profits? </li> </ul> <h1>STEP 5: ANALYZE THE MARKET - INVEST DURING A BEAR MARKET OR DURING DIPS. </h1> <p>I avoid investing once the market is in an upward trend, such as in the middle of a bull market. Take time to analyze the market by doing some simple technical analysis. Trading view is a great example, you can analyze it there as it's offering a lot of valuable tools to do so. <a href="https://coinmarketcap.com/alexandria/article/how-to-use-tradingview-the-best-crypto-trading-tool-for-investors">HERE</a> is a great guide for trading view. </p> <p>If you can't time the market, it's not a worry, that is not easy to achieve, as it takes a lot of experience. I like to get into the market if the dip is more than 10% on a weekly basis or if the price is at least 20% below the last ATH. </p> <h1>STEP 6: DCA (DOLLAR COST AVEREGING) </h1> <p>This is a process of reinvesting into your existing portfolio during dips and bear markets. Define a strategy and a budget which you will invest into your portfolio during a defined period of time. </p> <p>For example in my case I am dedicating a fixed monthly amount which I will divert to my portfolio. I am waiting for a good timing within a month to enter the market and allocate my funds to a certain number of coins which I believe will perform better or which are undervalued based on the facts gathered from step 2 </p> <h1>STEP 7: TRACK PERFOMANCE AND EXCLUDE EMOTIONS</h1> <p>Track you coins on a daily and weekly basis. Don't spend too much time on it and try to avoid FUD and FOMO. The most important part in crypto is to exclude all emotions - always stick to your strategy and to the answers that you gathered during step 1 and 2. </p> <h1>STEP 8: EVALUATE AND UPDATE YOUR PORTFOLIO EACH QUARTER </h1> <p>A lot of things tend to change during a period of 3 months. I am usually having a Q session where I repeat step 1 and 2 based on new findings during that period. This may require some re-allocation within your account, or it may happen that you will exclude a certain coin in order to add a new one. </p> <p>This is my strategy, it is giving me good results and I hope this could help you all to build your own trading strategy. </p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/vjeva"> /u/vjeva </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/p6odna/i_have_a_investment_cycle_that_works_for_me_and/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/p6odna/i_have_a_investment_cycle_that_works_for_me_and/">[comments]</a></span>Kind Regards R