Day trading Crypto

[John Winter]

Can I make good profit day trading Crypto, I feel like I only want to play around with 400 USD for now? can i obtain daily profits in the top coins?

such as

- btc
- btc cash
- ripple
- litecoin
- etherum
- dogecoin

 

[Mafiz]

I also had similar ideas but lack of knowledge

 

[waterworks]

It's very difficult to day trade crypto. When the market is hot, you can pretty much move your money into any coin and you'll make something. When the market is a bit flat like it is now, you will have trouble making any money on a daily basis. And when the market is down, you'll likely get stuck holding for weeks or even a month before getting back to even, unless you keep more money on the side for buying the significant dips.

And you won't make anything significant at first with $400, even if you stuck to trading on GDAX where you can trade without transaction fees using LIMIT BUY / SELL option. Day trading on Binance or any other major exchange with that little cash and the fees will eat into your small profits.

As an experiment, I set aside $6k for day trading only ETH on GDAX to see how far I can get. I started in the middle of January. I've been very aggressive day trading the peaks and dips, sometimes selling on just a $5 swing, and I never sell below the amount I bought for. The most trades I've done in a day is 3 buy/sells, when the volatility is really good. And all my transactions have no fees. It's fun, but extremely challenging. Hopefully I've have something very interesting to write about at the end of the year.

 

[healzer]

You can make more with $400 than most newbies on this forum ever made in their life.
You can easily make between 1% and 5% per day on a single trade. If you stay active for 6 - 8 hours, you can easily compound and have several of those trades in a single day.

Let's say you manage to get 2% realistically on a single trade:

$400 x 1.02 = $408 thus $8 profit for doing just a few clicks.

Usually there are two to three lows/highs in a single day that can make you 2% easily (when trading BTC that is, from my experience).
So you are looking at the next formula:
$400 x 1.02 x 1.02 x 1.02 = $424,48 --> you just made $24 in a single day.

The next day, using $424 and another 3 trades making 2% will earn you about $26.
If you keep this up every single day, after a single month you have transformed $400 into $720.
After 3 months you will have $2330.

This is way more than +95% of the people earn here from Instagram, Pinterest, Twitter, Facebook, SEO, ...

But there is a risk -- trading is risky -- and if you don't know what you're doing you're just gambling.

Cheers

 

[soa0611]

You can make more with $400 than most newbies on this forum ever made in their life.
You can easily make between 1% and 5% per day on a single trade. If you stay active for 6 - 8 hours, you can easily compound and have several of those trades in a single day.

Let's say you manage to get 2% realistically on a single trade:

$400 x 1.02 = $408 thus $8 profit for doing just a few clicks.

Usually there are two to three lows/highs in a single day that can make you 2% easily (when trading BTC that is, from my experience).
So you are looking at the next formula:
$400 x 1.02 x 1.02 x 1.02 = $424,48 --> you just made $24 in a single day.

The next day, using $424 and another 3 trades making 2% will earn you about $26.
If you keep this up every single day, after a single month you have transformed $400 into $720.
After 3 months you will have $2330.

This is way more than +95% of the people earn here from Instagram, Pinterest, Twitter, Facebook, SEO, ...

But there is a risk -- trading is risky -- and if you don't know what you're doing you're just gambling.

Cheers

i absolutely dont know this stuff
how can we catch these lows/highs ?
and what is common mistake when newbies loose their money?

 

[healzer]

i absolutely dont know this stuff
how can we catch these lows/highs ?
and what is common mistake when newbies loose their money?

If you are going the trading route, watch lots of videos and read many trading strategies.
It's not an easy path, but nothing worthwhile ever is
There are bunch of crypto trading threads/guides on BHW, so you can start with them.
Just beware, that most people here prefer to buy & hodl (ICOs that is) rather than day trade, I prefer the latter.
A common mistake is just throwing money at something and crossing fingers. There is a lot of science behind making a good buy/sell, so educate yourself as much as u can.
Cheers!

PS: right now I prefer trading BTC only because it has better margins for me. Feel free to follow my journey, check the sig.

 

[toml3030]

Can I make good profit day trading Crypto,

I have traded stocks, options and futures for more than 20 years. IMO it is impossible to day trade cryptos because spread and slippage is too much to overcome.

 

[troparzum]

Listen to toml3030. Daytrading is the hardest thing in the World and cryptos are so fast you will loose all your money. Greed and fear will get you

 

[waterworks]

I would agree with @healzer on the 2/3 peaks per day but nailing the peaks and valleys is impossible. You'll be lucky to get within 25-30% meaning if the swing is $10, you're probably going to make about $5-6. It's not nearly easy as he makes it sound. Although, he has some kick ass software in dev, so maybe it really is for him. LOL.

 

[VncCEO]

I thing buy and hold, don't trade

 

[healzer]

I would agree with @healzer on the 2/3 peaks per day but nailing the peaks and valleys is impossible. You'll be lucky to get within 25-30% meaning if the swing is $10, you're probably going to make about $5-6. It's not nearly easy as he makes it sound. Although, he has some kick ass software in dev, so maybe it really is for him. LOL.

You are correct, and it's something that I forgot to mention.
It's nearly impossible to nail the peaks/valleys precisely, so in reality we would end up making less than the theoretical max.
That's why I love the BTC market right now, it allows us to swing for a 3-5% ROI in very short periods of time (usually 1 - 6 hours), and if we miss (as we expect to) we still end up having 1-2%.
Using some prediction software can definitely help, but we should never rely on it exclusively.

I thing buy and hold, don't trade

That's what a lot of my friends did, and now their portfolio is worth 50% less than what they started with.
Most people buy at the wrong time, and then it's too late.

 

[fendibebe]

Day trading BTC is a nightmare, I have to say.

 

[jazzc]

Can I make good profit day trading Crypto

No, by being a complete newbie in this you can forget about day trading, if you like your money. If you don't go ahead

 

[greymoon]

No, by being a complete newbie in this you can forget about day trading, if you like your money. If you don't go ahead

exactly. its hard for good traders and for complete newbie its impossible. Also with 400$ - with 40,000$ you can play on the very safe combinations and generate something with lots of stoplimits trying to play only on winners side cent by cent - but with 400 and being total newbie.. Forget it man, people works and learns this for years

 

[toml3030]

exactly. its hard for good traders and for complete newbie its impossible.

That's even assuming that the marketplace is not fixed. I STRONGLY suspect that a lot of altcoin market places are bucketing transactions.

 

[waterworks]

That's even assuming that the marketplace is not fixed. I STRONGLY suspect that a lot of altcoin market places are bucketing trades.

I day trade ETH every day and for three days last week, I watched this buy wall constantly appear, disappear, and reappear. At incredible speed too, so I figured it must be a bot. It was a buy order for roughly 300-400 ETH each time. It would appear about $4-5 below current price. If current price got within $2-3 of this buy order triggering, the buy order would immediately disappear. Within a 1-2 seconds, it would reappear at lower price again at $4-5 below current. This went on for three days straight, all day and all night. The moment it stopped, the price dropped off about $40+ before stabilizing.

 

[healzer]

I day trade ETH every day and for three days last week, I watched this buy wall constantly appear, disappear, and reappear. At incredible speed too, so I figured it must be a bot. It was a buy order for roughly 300-400 ETH each time. It would appear about $4-5 below current price. If current price got within $2-3 of this buy order triggering, the buy order would immediately disappear. Within a 1-2 seconds, it would reappear at lower price again at $4-5 below current. This went on for three days straight, all day and all night. The moment it stopped, the price dropped off about $40+ before stabilizing.

Now that you mention this scenario, I'm wondering whether it has smthn to do with the highly predictable pattern in trading volume (red line):

It's generally true that over 70% of trades are bots -- so maybe this pattern is the result of a massive bot infrastructure trading every minute?

 

[waterworks]

It could very well be. It was very easy to see this order as it was so big. And the fact it would get cancelled and then flash at a new price within a second or two led me to believe it was a bot trying to prop up the price. Nobody could do it at that speed, and keep it up all day and night. The first day I was surprised to go to dinner and come home and it's still there doing it's thing. Then go to sleep and wake up. And it's still happening. Then all day again and night, etc. The price topped around 980 on the most recent run, then promptly fell back to the 917 before starting a quick rebound to 930's where it bounces now.

My other thought was this was coinciding with a second bot order that would buy/sell in much smaller amounts, while the big one controlled the price somewhat. Two bots in cahoots. Haha.

 

[Nicheblogger]

I've never had a problem trading coins on binance for quick profit, it depends on the day though. I watch all coins and charts for upticks and gains, once a coin gains momentum and starts showing obvious green candlesticks, I just load up on it. Ride it into fast profit and put the money back into my long term positions. There are often days where every coin is in the red, watching close for one to start showing green and everyone dumps money into it (regardless of it's fundamentals). Ride that sucka! I've done this hundreds of times, rarely losing.

 

[healzer]

I agree with most replies that day trading is risky if you don't know what you're doing, -- the keyword is "if".
Here's quick update from the real world.
At midnight I made an entry and bought BTC against $11,078/btc because my calculations told me it would rise about 1% in the coming ±3 hours.
Actually, one hour later (right now) the price jumped to $11,366/btc -- that's 2,6% ROI.

However I made my exit at $11,250 and got a nice 1,55% out of it.
Greed is what kills investments, many people hold for too long expecting higher ROI and usually miss their exit.

I would tell people to try day trading starting with modest amounts, just like I am.
If you have a spare $100 (or like $400 in OP's case), just do it. It's just $400, you can earn that back by working in McDonald's for a few days. But the knowledge you gain by learning this business can be worth it -- keyword is "can", depending on how serious you take the experience.