We are in the bear market, and things are slow.
The charts look boring as it moves up and down with little signs of breaking out.
The bear market is like a time the market finally gets to breathe normally to restore health (in comparison to the bull market of charging up days after days).
The chart above shows the price of Leo ranging between about 0.14 to 0.23 over the last few weeks.
Since both Hive and Leo are what I wanted, like my two children for which I try to shower equal love; I can actually employ a scalping strategy that takes advantage of the natural rhythm of the price fluctuations.
I do this with my liquid Hive and Leo in the Hive-Engine, after accounting for the powering up I committed.
This is how this strategy would pan out...
Suppose I start with 100 Hive. If the price of Leo is 0.14 Hive per Leo, 100 Hive will get me 714 Leo.
I set a sell order at 0.15 Hive per Leo, i.e. hoping that Leo increases from 0.14 to 0.15 Hive per Leo.
When that selling is activated (god knows when!), I will acquire 107 Hive. That is a 7 Hive gain.
Then if I set another buy order of Leo at 0.12, I will get 893 Leo with 107 Hive. That means I increased my Leo holdings from 714 to 893. If I had held on to it from my initial purchase, it will still be 714 Leo!
I can at this time set a sell order of Leo again at 0.16. If it gets activated, I will get back 143 Hive. That is 43% gain in Hive quantity from when I started!
These numbers are arbitrary, of course. But this is the simple strategy of scalping, and people all over the trading market does it. This is no rocket science. What is different here is this I have two assets that I wanted in Hive and Leo (and I don't mind holding a bag of any). I am happy to see them grow, and that can happen just by setting the buy and sell orders, and patiently wait. Just remember to make sure that the profit margin exceeds the transaction fees.
The comparison should always be with the initial amount, i.e. 100 Hive or 714 Leo. Just take them as the hodling stash, but they grow in quantity nevertheless because the market breathes and they grow in quantity in the process.
They use to say the market is the place that transfers wealth from the impatient to the patient. I finally know what it means now.
Of course, this is not financial advice. So do your own due diligence in your investing!
This strategy does work if this is spare money that is converted to crypto for holding.
Posted Using LeoFinance Beta
