02/03/2025
NOT LEGAL FINANCIAL ADVICE
Whew what a wild day. As more people start to follow the page, I am doing my best to explain what a "DOWN" day looks like for us. I received many texts today about being discouraged because of the crypto market being down. Lets talk about what that looked like today, and see if I can explain why it is still a positive day for me despite being down overall for the week.
Whether you are in stock or crypto, there is always a trading range. The trading range is where the price tapers off both on the low and high ends of the range. For instance, lately Bitcoin has been bouncing around between $91,000 to $109,000. I mostly trade doge coin, which tends to follow the Bitcoin market. So, today Bitcoin opened somewhere in the $100,000 area and it began to fall pretty quick (along with other cryptos like Doge). I quickly saw that the last time it fell, it stopped falling around $91,000 before moving back up to $95,000. Doge is very similar, with the trading range being 20 cents to 40 cents roughly.
So what does this mean for a trader like me? I started the day with around 271000 doge coin. When I noticed Bitcoin at $97000 and Doge just under 28 cents, i sold 50000 doge coin. Then, I waited. Once Bitcoin was at $191,000, the bottom of the trading range (and Doge is just under 21 cents), I BUY. I put in an order for the same amount of money I had sold for earlier in the day. By doing this, i now have 284,533 Doge. At the time of writing this Doge is currently at 23 cents.
So what does this mean? It means today we gained about 13000 doge coin. When it goes back up to the higher trading range (hopefully 39 cents for me), I will sell this amount and wait. Maybe I will put it back into Doge if it falls back to the 20 cent range or maybe I will find another stock to put it in, either way, This is how I make a profit on a "down" day.
There are other means to make money when the market is falling, but this is how I like to do it since I am bullish (optimistic on the market trending upward over time).
Here are some pics for reference, but notice I did take a small $250 profit here for literally no reason.