Published
4 years ago on
June 04, 2019
Table of Contents
- Plan and Execute Your Trades to Avoid FOMO.
- Why trade like this?
- Let’s use EOS as an Example.
- This is One Way I Have Learned to Trade Without FOMO.
Plan and Execute Your Trades to Avoid FOMO.
Over the last month, I watched as my favorite trade, “Buy the Rumor, Sell the News”, played out like a perfectly performed ballad. I know many of you are bad ta traders like myself. I don't have time or the patience to pour over charts. I also only trade occasionally.
This type of trade is pretty easy to spot. Big announcement coming, coin specific conference or if you get massively lucky some insider knowledge that somehow leaked.
What to do, accumulate for a few days then enjoy the ride. The key to my trade is to get out before the announcement.
Why post this? I counted three big "Buy the Rumor, Sell the News" trades in the last few weeks. Ethereum rocked during Consensus, EOS over this week and now Tron after the announcement of the announcement by Justin Sun.
Why trade like this?
The risk is relatively low and I can go about my normal business. The key is that I spend a few hours per week researching the event calendar and I follow all of the main characters in Crypto on Twitter. I put together a Crypto Twitter list that you can follow.
If you are anything like me you probably do not enjoy doing TA (Technical Analysis). This method of trading gives me the opportunity to accumulate a position, relax as the volume builds and then I sell 1-2 days before the announcement.
Let’s use EOS as an Example.
This Tweet by Block.one happened on March 25. So I had just over 60 days to accumulate some EOS.
What Would Have Happened if I Bought 100 EOS 30 Days Prior to the Announcement?
On May 1st, 2019 EOS was priced at $4.75 USD or .00088 BTC. If I sold on May 31 the price of EOS was $8.40 USD or .00098 BTC. I used CoinMarketCap for reference. Not a bad trade for something that could have been set up 30-60 days prior thanks to the Tweet by Block.One.
This is One Way I Have Learned to Trade Without FOMO.
When I first got into Crypto I used to fall into the FOMO trap and take losses and then hold a bag. Experience has taught me to be much more calculated. When people post on social media that I should buy project coins or tokens after they have already gone up 50% in the last few days I now just shake my head.
There is a term in Crypto that never fails. It is called DYOR (Do Your Own Research). Relying on people from social media to help you decide how to trade on a daily basis is a recipe for getting #REKT. This is merely my opinion. Enjoy your day and happy trading.
