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Buy the hype and sell the news – my other strategy

I have my other portfolio, and I will be using $1000 to start a “buy the hype and sell the news strategy”.

Currently more and more people are pouring into crypto and asking what coins to buy. I will be buying coins based on pure hype and sell and dump on events. Events include

  • Listing on exchanges. I’ve been watching some live listings on exchanges and the price usually drops right away.. it may rise later but that is not this strategy
  • Renaming, rebranding. e.g. lisk. Buy during hype and when the announcement is made, sell. Long term of course I would hold but it defeats this particular purpose
  • ICOs. This one is tricky. e.g. If a big project is being listed that only accepts NEO. I will buy NEO 2 or 3 days beforehand, and a few hours or minutes before launch, I will sell. Because of the time it takes for confirmation. I will probably do the following:
    • If BTC or ETH, sell 3-4 hours prior to sale
    • If NEO, sell 1 hr before
    • If Dash, LTC, sell 10 mins before.

I’ll keep a track and see how this goes.

I’ve sold my shares and moved it to crypto

I bought NEO (antshares) at $16, 2 months ago and sunk $1000 into it. I also bought $1000 worth of other speculative coins like Siacoin, ReddCoin, Stratis, Steem. There were the most hyped up. They went up a bit then went down, and down, and down. Neo went a bit higher.

2 months later (today

NEO is worth $3000 (at $50), while the rest plummeted to about $400. So a $2000 investment turned to $3400. Not bad. So I sold all my shares (about $8000) and have moved it to crypto.

I’m aiming for 50% stable and  50% speculative. Right now this is the breakdown

Stable holdings
NEO – Put in $778 at $12.98/NEO. Now $38.50 ea
BTC – Put in $1551 at $4475/BTC. Now $4519 ea

I will also put short term on Lisk soon

Speculative holdings

XVG – put in $970 at $0.0035. Now its $0.0026. I am hoping XVG gains traction and hits $3. This will then generate almost $1M
WAVES – Put $200 at $4.56. Now its $5.24. Long term hold.
OMG – Put in $145 at $5.64 ea. Now it’s $8.27. Another long term hold. They have a working product. I may chuck a bit more into OMG.
BNB – Put in $715 at $2.17 ea. Now it’s $1.95. This is a chinese exchange, it shows promise as they are launching ICOs on the platform but recently suffered scaling issues.
PAY – Put in $958.44 at $4.30 ea. Now it’s $3.58. Aka TenX. Bought this on hype. They have a working card however has not reached critical mass.
BQX – Put in $739 at $1.24. Now it’s $0.928. Bought on hype. They aim to make a universal wallet. However lots of others are doing the same. BQX are close to releasing though.
DNT – Put in $382 at $0.15. Now it’s $0.16. aka District0x – Big ambitions and I bought at peak during hype. Another rookie mistake. We will see how this goes. It’s only a few hundred.

Portfolio value 27th August 2018 – $7449 or $1.69 BTC.

As you can see, I will need to funnel more money into stable coins. NEO profits have covered my losses in the speculatives. It is highly likely all speculative coins will end up being ‘bags’. OMG seems most stable. We are going for the Pareto principle where 20% of stock will give 80% of gains.

ICOs I’ve participated without much research before launch
Agrello – Put 1.5 eth – looks pretty bad tbh
Loopring – Put 1.5 eth – also looks pretty bad. I fell for the China hype but it’s too late.

ICOs I researched properly and will put money in
– Kyber. Based on ETH but will allow fast transactions via caching of tokens (simplified) amongst hosts. Solid team.

ICOs I’ve avoided after research
– Substratum. Manual issue of tokens. really???? and dodgy website, not a solid team
– TRON. 100 billion tokens and they promise 8-9 years for a working product. Nope.

I’m pretty sure I got scammed. I’m a little upset at myself

With all the talk about crypto and the hype, I read as much as I can and I am usually pretty good at avoiding scams such as ponzi schemes or fake ICOs.

I came across a post in the Crypto Coin Traders group in which there was a cross promotion with “Jah Trader” aka Chris Cole promoting his website Crypto Kings. People on BHW were quite skeptical and there were a handful of mixed positive and negative results. I signed up anyway. It was $500 to sign up and get some indicators.

The platform, Ninjatrader, is legit. Chris would hold a room 3 times a week via gotomeeting and we just watch him do trades and he provides the occasional commentary. The emphasis is placing stops.

However the signs were coming. 

  • Lack of communication. Blaming the deaths of family members, the ‘room’ didn’t launch for the newbies until 2 weeks after. However we were given a 2 week grace renewal period.
  • I paid $500 extra for indicators that I could install on Ninjatrader. Googling and researching – i found the same indicators from futures.io at $100. At the time, ‘Chris’ would advertise that he was “not trying to make money from the indicators”.
  • He would sometimes cut off the room early without notice
  • More lack of communication.
  • Upsell of the auto mated program. This was the crux. We struggled to pass the topsteptrader combine and here he comes with a program that could solve our problems at a few thousand dollars. Programs might work short term but not long.
  • ‘Chris’ didn’t realise I signed up via the Crypto website. He runs two websites to funnel new users in. Crypto kings and Order Flow, but I don’t think he works with Order Flow Analytics anymore. Lack of support
  • There was little education. Chris was more reactive to our questions rather than proactively teaching us TA fundamentals like resistance and support. However he did know.

Anyway, there was actually NO crypto learning. It was actually learning how to trade ZB stocks (future bonds). I did learn the basics of trading, however I learned way more on youtube videos about indicators such as RSI, MACD, and Ichimoku. The program here was focus on volume trading, which is also a very good strategy. However Chris seemed non committal to us.

How did I go?

  • I followed most of Chris’ trades and some days I got results, some days I didn’t.
  • I went on my own and got similar wins and losses. More losses at first and later I got more patient with selecting trades when there was convergence on all indicators.

Overall I could see myself doing the combine but I would be better off saving up for my own bankroll rather than giving 20% of profits to TST and also a monthly fee to Chris. However starting the room got me onto the world of trading – you gotta start somewhere. $1000 Lesson learned.

Since my realisation, I went back to the Crypto Coin Trader group on Facebook, and it is apparent all posts related to Jah Trader were deleted. So the admins seem legit but were also fooled by the scheme.

Be wary people.