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You Won't Get A Profit In Selling Until You Use It In Buying

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Avatar for Jane
Written by   1050
3 weeks ago

April 20, 2021

Many new traders thought that they can get profit from selling. But that's not really the case, because even if you sell it at a higher price, the amount of your asset is still the same. But you will start gaining profit, once you buy more assets from the money you've got from selling.

I know it's a understandable, but many are still NOOB here and still don't totally understand the whole process.

Well, just think of it this way...

For example, you sold your BCH at $1200. Yes, you got a profit since the selling price is higher than the buying price. BUT, you lost your 1BCH since you sold them, so it's not a real profit.

But if you use the $1200 in buying BCH at $900, then your 1BCH will become 1.3333BCH, and that's the real profit. You were able to accumulate 0.3333 BCH which is worth $333 if base on a $1000 BCH price. So the 0.333 BCH ($333) is your real profit, not the money you've got from selling.

So that is how we get profit in Spot Trading. If you are new here and still don't know how to spot trade, then this is a hint for you.

To avoid being FOMO or having losses, always remember the "SELL HIGH, BUY LOW" principle.

image source

If you buy BCH at $900 then sell it at $1000 or higher, then rebuy at $900-950 or lower to gain profit. You can't rebuy at a price higher than $900 because you will only lose your profit. But in some cases, (just like some of my trades 🤣), I rebought assets with the price higher than the selling price because the asset's price rapidly goes up, and is impossible to drop to my target buying price anymore.

This usually happens when you early sell an asset, just like what happened last bull market. Many have sold their BCH at $800-900 prices not expecting that it will go higher than $1000. So the BCH they have sold at for example $820 cannot be rebuy at $800 anymore since the lowest support was $806 and it rapidly goes up right away and maintained the $850-900 support level. (I am actually referring to myself 🤣)

But to avoid big losses, in case the price of the asset is impossible to go down to your target price anymore, then it is much better to rebuy at your selling price like if you sold at $820 then rebuy at $820 or $850. At least, the losses are smaller compared to the ones you'll get once BCH maintains its support level at $1000.

You can also use the technique called Dollar-cost averaging (DCA) or the technique by dividing the total amount to be invested across the target assets to reduce the impact of volatility.

image source

You can also apply this by just using the profit you've got to buy assets and retaining the capital.

For example,

You bought 1BCH at $900 and sell it at $1000 so you gained $100 from it.

The next time you rebuy, just use the $100 to buy BCH instead of the whole $1000. In this way, your $900 worth of BCH is safe in case the market suffers from a sudden swing.

Because we can't really tell what would be the exact resistance to sell an asset, or exact support to buy an asset. So much better to secure your capital and let it float on the blockchain to generate more gains once the market pumps again. For more info about the DCA technique, visit Eybyoung's article about it.

Another way to generate more profit during a bull market, and even in a bear market is through the Retracement method.

image source

Retracements are the small dip during the bull market and the small spike during the bear market. The trend is not going up all the time in the bull market, or going down all the time in the bear market. So that small spike and small dip allow traders to buy more or sell more and generate more profit.

It's just simple, during the bull market, buy on the small dips, and sell again at a higher price. If you do this multiple times, then you will generate more profit. This also saves you from a market crash. There will be times that the trend will spike in a short while, so take that chance to sell your asset during the bear market. Then buy again once the trend goes dipper.

This method is actually for the experts and for those who know how to read the TA. Because if you don't know TA, your trades won't be successful.

So here are my trades last bull market. My profit was actually so small since I early sell at prices, $820,$830,$880, and $1100.

  • Sold 0.25512 BCH at $820 and 0.37998 BCH ay $830, with a total of 0.6351 BCH. Then rebuy 0.63119 BCH at $830.

In this case, I've got 0.00391 BCH loss since I rebuy at $830 price. The BCH price seems like it won't go down to $800 anymore since the lowest support at the time of writing was $828. Although there's a small chance to go lower, but I don't want to get that chance because I might regret it later if it doesn't happen. So it's better to get small losses than a bigger one if BCH regains its track.

  • Next was, sold 0.25 BCH at $1100 and rebuy at $1050. My 0.25 BCH became 0.2677 BCH so I gained 0.0177 BCH.

  • Then sold again my 0.26163 BCH at $1100 and rebuy at $1075. It became 0.2677 BCH so I gained 0.00607 BCH.

As you can see, I only gained a small profit here because I did not expect the price to go lower than $1000. But it's better to take small profits than get bigger losses.

So the total profit I've got was only 0.02377 BCH less the 0.00391 BCH loss equal to 0.01986 BCH only.

But good thing I have swapped some in my Bitcoin.com wallet. (Btw, I have posted the wrong screenshots about this on noise.cash 🤦‍♀️. I based my calculations on my ss while swapping, not thinking that the amount will change once you execute it since the price is volatile). So here's the exact info:

I swapped 0.11236283 BCH + 0.19452447 BCH at different live prices, a total of 0.3068873 BCH, then swapped back 0.34289579 BCH when the price was $850 something, so I earned 0.03600849 BCH.

The total profit I have earned in Binance trading and Bitcoin.com swapping was only 0.05586849 BCH.

Too small for that huge uptrend since I sold most of my BCH at lower prices. And it's a lesson to learn again. And because of that, I wasn't able to do retracement because my buy order was stuck at $800.

As you can see, my trades aren't that successful but at least I earned a small profit. And in the next uptrend, I know what to do.

Patience is really important in trading, but in my case, I became excited and impatient, so that's what happened.

This is not trading advice since I'm not a pro, yet 😅. So always trade according to your will and don't risk what you cannot afford to lose.

Lead image from https://www.dailyforex.com/forex-articles/2017/11/how-to-profit-from-cryptocurrencies-part-2/85625

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Comments

After reading this, I realized that I did a lot of mistakes in buying and selling😆

$ 0.00
3 weeks ago

Why we all are same i exchanged my bch in 550$ and then it started pumping and when it cross 700 i started feeling regret and so on but i learned with my mistakes

$ 0.00
3 weeks ago

D lahat pumapasok sa kukote q jaja need to reread.. niways, am waiting qng my pag-asang mag dump sa 700 or lower pra mkabuy ulit from the gained profit..

$ 0.05
3 weeks ago

Wala na.. Sa $800+ level na sya.. Kya khapon nung nagdump to $830 buy na agad ako Nagsisi na ko nung hndi akk nagbuy $480+ plng

$ 0.00
3 weeks ago

Awts... mesheket se bengs pag ganun..

Wey, missy... thanks a lot sa upvotes..😘

$ 0.00
3 weeks ago

I'm always a victim of FOMO 😅 Few months ago when BCH flew to the moon at $700+ I swapped my entire BCH holdings at 550 then I regretted because it went higher than that. I thought it will not drop back to at least 450 so I immediately swapped my stable coins at 500 but it drastically dropped below that price. Last time, I also sold few of my earnings at 620 then it went over 1k 🤦🏻‍♀️ My prediction always goes wrong.

$ 0.05
User's avatar sc
3 weeks ago

It's more like, we can't wait for it to reach its peak coz we become impatient 🤣🤣 Sayang nga. Kung naghintay ako mag $1200 then buy at $900.. $300+ worth of BCH sana nagain ko

$ 0.00
3 weeks ago

More gains more profit more coins. To the moon

$ 0.00
3 weeks ago

Ang sakit sa bangs... Nyahaha... Kelangan basahin ng paulit ulit... Medyo naintindihan pero dagling nkalimutan 🤦‍♀️😅 anu beyen...

$ 0.05
3 weeks ago

Sorry kung complicated ang explanation

$ 0.00
3 weeks ago

Bakit kasi ang tamad kong mag swap swap. Sau kahit di ganon kalaki ang profit okay na okay na ano. Di naba matagal mag swap? Try ko nga yan ulit sa sunod na.

$ 0.05
3 weeks ago

Nung una error. That time hndi naman

$ 0.00
3 weeks ago

ako lang ba? ung parang maha heart attack pag gagawin ko to? di talaga ako confident.. am reading and reading..sana mabago tong feeling ko.. para makapagstart.. by the way bull market and bear market.. bull ba is ung pagtaas and bear is pagbaba?

$ 0.00
3 weeks ago

BCH value is magical so wait and believe on hold and hold theory don't swap it into BTC.But you should mind one thing you achieve your target by taking risk.So don't be hopeless and become optimistic dear.

$ 0.00
3 weeks ago

Every thing and every chapter of life has lesson.I also 1st lost my 10$ in trading in stormgain.But now I am a good trader and earn profit every time. BCH value is magical so wait and believe on hold and hold theory don't swap it into BTC.thanks

$ 0.00
3 weeks ago

Dito ko na fe.feel.n wla pa akong ka.muwang muwang dios ko lord. Ang sakit sa brain cells. Teka pwd pla mag swap ng USDT sa bitcoin.com from bch? BTC kasi nakikita ko always lol

$ 0.05
3 weeks ago

Oo.. Pro sa mataas na price.. Then swap back kpg mababa na price

$ 0.00
3 weeks ago

Need ko to isave at balikan ulit para tumatak sa utak ko lahat ng binasa ko.

Sa spot trading, d pa rin ako expert.. Tho at least alam ko na yung concept.. Minsan lang d ko na eenjoy yung bull dahil Ewan ko ba.. Gaya nga ng sabi mo sa retracement.. Natatakot ako mag buy minsan lalo na pag during sa bull market.. Feeling ko kasi fomo yun.. Hahahha.. Pero next time, observe ko lalo at buy buy din pag may time..

At eto din nung me bnb ako at umabot ng $200+. Bwisit ako dito kasi d ko sinell yung profit ko. Nasa $78 lang capital ko so ngayon nasa $100+ na lang siya ulit.. Putik talaga. 😔

$ 0.10
3 weeks ago

Sinell ko nga 0.4bch ko dahil sa bnb.. Tas hndi manlang ako naglaprofit

$ 0.00
3 weeks ago

Bawi na lang tayo. Yung TLM din Putik ang bagsak.. $100 pa naman nilagay ko dun.. Hayst.. Buti pa si ADA.

$ 0.00
3 weeks ago

Dapat kc kpg tulad sa TLM, bantayan ang chart.. Benta agad kpg pababa na.. Hndi lahat na nililist sa Binance ay matagal ang uptrend.. May iba na bagsak agad

$ 0.00
3 weeks ago

Did you delete the previous one?🙄🙄

$ 0.05
3 weeks ago

Unpublished it.. Others misunderstood it. . feel sad here..

$ 0.00
3 weeks ago

It's kinda sad when you try to say something good but people misunderstand it. Remember? I also faced it🤣🤣🤣

$ 0.00
3 weeks ago

And it was freakin 14mins read article and I spent a lot of time to write it.

$ 0.00
3 weeks ago

I was thinking the same. you almost used 3 hours on it and those screenshots anf merging them. I feel sorry for that😢😢

$ 0.00
3 weeks ago

It took me the whole day, during my free time. Not only 3hrs

$ 0.00
3 weeks ago

I deepeeeessssttttr condolence for that. Something appened to me. My 18 days work was ruined in a day. I kinda feel the pain🙂🙂🙂

$ 0.00
3 weeks ago

Might gonna repost it but delete some offending contents

$ 0.00
3 weeks ago

Won't read cash detech it as plagiarism? 🤕🤕 In noise when I delete post as I made some mistake and again post that stuff. It says it's spam😐

$ 0.00
3 weeks ago

I did not delete it. I just unpublish it . so once I republish, it will appear to when it was published..

$ 0.00
3 weeks ago

I didn't know that. I always thought deleting is the only way😲😲

$ 0.00
3 weeks ago