Question: Need basic strategy help on a profitable trade I made

Discussion in 'Learn how to trade or invest by asking questions' started by mike242424, May 5, 2017.

  1. mike242424

    mike242424 New Member

    In the last 4 months I've made a 500% profit on a long digital currency position...

    Then I did this:

    1. Sold 1/3 stock
    2. Used 50% of sold capital and reinvested it in a different stock position
    3. Now I am waiting to reinvest remaining 50% back into my original stock because i think it will go down about 20% in coming days...

    I don't really know much about trading, I'm just using my instinct based on independent reading and gut.

    Is this even a strategy? Am I hedging my position?

    Would love to get some feedback, would be greatly appreciated.
     
  2. Acstudio

    Acstudio Well-Known Member won penny contest 44x won weekly contest 40x won weekly contest 41x simulator winner 20x

    Unless there is some inverse relationship between the positions, you are not hedging anything. You just have a portfolio of stock and cash and you are just betting on direction. If it were me? I wouldn't own anything that I'm up 500% in...I would have long since taken profits....you picked a winner, are you waiting for it to turn into a loser? Unless you just want to maintain a position in digital currency which is understandable....and waiting for a pullback to get back in is as good a plan as any. But make no mistake that whatever happens to the value of either will have little to nothing to do with what you believe to know.
     
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