We all know that the entire crypto market is having a very good time. Most of the cryptocurrencies are now at good prices. Only a few of them are at a good buying price. Some people might argue saying that it is definitely the right time to invest in some of the projects as we are in the early stages, I do agree but I would also like to consider the risk factor behind that even though it is very small.
A few days back Hive had a very good pump. It again crossed 1$ and almost reached 1.1$ in price if I'm not wrong. I'm not sure what was the exact reason for the pump but it was definitely a good sign. At least for the traders. I was glad and happy that I was around there when this happened. Usually, I miss out on all these opportunities and I only come to know about it after the price drops back. This time I was fortunate to witness when the price was around 1.1$.
Swing trades
I was fortunate to sell some Hive at the price of 1.05$. I bought that Hive when the price was around 78 cents. My intention was only to sell them at around 85 cents but unexpectedly the price went over 1 dollar. I knew something like this would happen and the price of Hive would shoot up. I was only expecting it to reach close to 90 cents but going above 1 dollar again was really a great thing. Only recently did I come to know about this concept of a swing trade. It appears to be the terminology used to refer to people buying low and selling high a couple of times with the same pattern of the market.
As long as the price of the token keeps going up and down between a price range, this swing trade is possible. For example, I keep seeing the price staying close to 80 cents and moving up above 1$ and then getting back to 80 cents again. This keeps happening again and again. Now again after the current pump, the price is back to around 81 cents. It also appears quite strong there. I guess in the near future 50-80 cents would be the next base price for Hive. It may not go below that even in a very bad market.
Swing trades are also risky. I would also like to quote that there have been instances when we buy something and try to do a swing trade but the price of the token never goes up after that. The same can happen with Hive as well. So, I would like to add a disclaimer saying that we should be doing swing trades only at our own risks.
People who are ready to invest in Hive and hold Hive for the long term can easily try doing this swing trade. Maybe some part of the investment can be done as HP or HBD and kept locked. The remaining can be kept as liquid and when it is the right time we can do the buying and selling game for a decent profit. This is what I had been recommending to my friends as well.
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Very true for hive. It usually don't happen frequently to other coins. It was a good read.