Hey Zadankhan,
First of all, I understand your concern. It can be overwhelming to see a significant loss, and I admire your decision to seek advice before making further moves. Here are a few thoughts and suggestions:
1. Choosing Low-Value Coins for Swing Trading:
When looking for low-value coins to buy and hold for short periods, you might want to focus on the following factors:
Liquidity: Choose coins that have good liquidity, so you can easily buy/sell without large price slippage. Coins with higher trading volume are often a safer bet for quick entry and exit.
Market Sentiment: Look for coins that are currently being talked about in the market, as they might experience short-term price movements.
Coins with support and resistance levels: Find coins that are bouncing between support and resistance levels. This will give you clear entry and exit points.
Some popular low-value coins (in terms of price per unit) that might suit your swing trading strategy are:
Shiba Inu (SHIB)
But, please make sure to do your research and never invest more than you are willing to lose.
2. Spot vs. Futures Trading (with 1x leverage):
Spot Trading: When you trade on the spot market, you are buying or selling the actual asset (e.g., Bitcoin or Ethereum) and taking full ownership of the coins. It’s straightforward and doesn’t involve any borrowing or leverage. This might feel more comfortable if you are risk-averse and want to avoid the stress of using leverage.
Futures Trading: In futures trading, even with 1x leverage, you are not owning the coins; you're betting on their future price movements. The advantage of futures is the ability to profit from both rising and falling markets, but without leverage, this advantage is limited.
The key difference with futures (even without leverage) is that futures contracts expire at a certain time, which doesn’t happen in spot trading. In spot trading, you're holding the coins indefinitely until you choose to sell.
Main Difference if No Leverage in Futures:
Futures contracts allow you to enter long or short positions (i.e., profit from both rising and falling markets), while spot trading only allows you to profit when the price rises.
Futures also allow you to hedge against the market if you’re trying to minimize losses in certain scenarios.
Since you're focused on small profits and avoiding panic, spot trading might be a more comfortable choice as it allows you to hold assets and only focus on price movements without worrying about expiration dates or leverage.
3. My Suggestion for Swing Trading:
Choose a strategy and stick to it. It's easy to get emotionally attached to trades, but sticking to small, consistent profits is key in swing trading.
Set clear stop-loss and take-profit levels to avoid panic selling when the market moves against you. This will help remove emotional decisions.
Diversify your investments. Don't put all your funds into one coin. Spread your investments across multiple coins to minimize risk.
Be patient and avoid staring at your screen all day. You don’t need to be glued to the market constantly. A few trades per week can give you the profit you’re looking for without stressing.
Remember, consistency is key. Small profits add up over time, and minimizing your losses is just as important as making gains.
Hope this helps! Best of luck with your trading, and feel free to ask anytime.
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