Thought my experience might be helpful for newbies, but mainly for nearly newbies who think they have got a good idea how this works. Thats what I thought..a little knowledge is dangerous!
April 18 Got into Crypto, did my research and settled on XRP as the asset to go for.
April 18-Dec 20 Accumulate reasonable stack of XRP (20k +) and also diversify into a couple of others in a small way..inc some ETH and XLM. HODL is my mantra . So far so good.
HODL for getting on for 3 years.
Late 2020, sell 20% XRP at 0.3 as Christmas coming and business flatlined due to Covid. Understandable, no problem.
This is where it starts going wrong!
mid Dec 2020..Things hotting up, Bitcoin flourishing, ETH back to price I paid after 2 years, Small profit on XLM, XRP finally on the up after years of HODL. $ almost double my original investment. Loving this Crypto lark!
XRP falls, but the hype is growing. ..XRP gonna fly soon.Sell ETH and XLM , all in XRP.
Nearly Xmas ..SEC prosecution announced by Brad, see announcement early, finger poised on sell button at just over .5, decide against..it won't go down too far will it? Go to bed. REALLY BAD DECISION.
Next day wake up XRP down to 0.4. Finger on sell button again.This is the bottom, it won't go down further. HODL. Next Day 0.3 . This is the bottom, it won't drop further. HODL. Next day 0.23.
S**t! This could go to 0.15, Sell all at 0.23.then I can buy back.( Sell at Low point. REALLY BAD DECISION) . Put money into ETH at around $850.(better decision.)
XRP rises. Buy back in at 0.31 ish. Sell Low, buy High again. I have now reduced my stack considerably, but decide to buy other coins to spread risk...buy some ADA. Sell ETH at $1100 small profit, buy more XRP to try and replace stack.
ETH goes up to $1400
Jan 21..XRP rises to around .4 , then falls back to .37. Panic...its gonna crash again. Sell all at .37. . buy back at 0.25, yes? (ANOTHER BAD DECISION ) XRP shoots up again.
Hold Fiat in exchange, nerve going a bit.
Earlier this week..XRP around .45. Wonder about buying back in, but hoping it falls back to my sell point. It doesn't. Talk of the 1 Feb pump. Decide to leave til morning. (BAD DECISION) . Wake up , XRP 0.65. Knowledge I have points to pump and dump. But if it goes up to $1, I can sell, wait for the fall and build stack back up near my original right? It may be a bear trap, but I know what i am doing right? I won't be greedy, get out early. right.?
Set sell target at 0.78..that will be fine won't it? Not greedy. All XRP budget in at 0.65. Sell 50% ADA, buy XRP. At .78 sell, and if price then drops to .30 I will get back 2/3 of my original stack. happy days! Be on the safe side though, cos this is a trap. Set first ever stop loss at 0.63, so even if I mis time it all will be OK, right?
This morning..check price..0.72..all going to plan. Go to do some errands, house maintenance etc. Check price ..0.64. All Ok, my stop loss will kick in. Check 30 mins later, price 0.51..whats happened to stop loss.? Exchange must have messed it up right?
Now . XRP at .38. . i Have a third of my original stack. Gutted.
Reflecting on the experience, the lessons for me and nearly new players:
HODL is the best policy.
Leave trading to experts/really experienced. ..its a bloody minefield. Even more dangerous when you THINK you know what you are doing.
Be patient! a no activity period is fine, you don't have to fiddle with your investments all the time.
Don't try and chase your losses, stick to the plan. If I wasn't so keen to try and sell and buy back to make up for earlier poor sell decision, I would be much better off.
Everyone says inexperienced buy high and sell low. Stupid people, Ridiculous decisions right? The thing is, you don't know when it is the high..price might carry on rising of course. You don't know when the low is..price might keep falling right? . then you can sell and buy back right? wrong.
Stop losses don't work when there is major selling in the market. If I had known this, I would not have bought this morning.
tonight: Licking wounds. Wondering other I should just sell up and get out. ..Or should I hold, wait for another little pump, sell all, wait for court case, buy back in just before when Ripple win and go to the moon!!
Whatever I decide you can be sure of one thing..It will probably be wrong. ( But its great fun along the way!)
Thanks for reading Guys.