June 19, 2024

How much can you earn on trading to a novice investor. Part 84. Trading (continued)

How much can you earn on trading to a novice investor. Part 84. Trading (continued)

We continue the series of publications about trading in order to understand in practice how much you can earnnovice investor using only forecastspublished on our website. To understand how useful they are, we decided to conduct an experiment and simulate a situation in which a person who knows about trading only what you need to “buy cheaper and sell more expensive”, tries to get additional income in his spare time by investing part of his money in cryptocurrency trading

After yesterday's decline, the price of Litecoincontinues to fall. According to today's ForkNews forecasts, the pair can reach the 61.8% fib level (51.48 USD). Perhaps this level will not be able to reverse the recovery price, and buyers will look for a stronger support level around the 50% fib (45.95 USD). 

However, after re-testing level 61.8% fibonacci is likely some recovery in LTC price. You won’t be able to make a lot of money on it, but in order to test the theory, you can try placing a buy order of about a third of our standard purchase volume – that is 1 LTC. If the price drops to 50.00 USDT, we buy 1 LTC and wait for a recovery to the area of ​​59.00 USDT. 

Why exactly 59.00 USDT, and not 60.00 USDT? Because at level 59.31 USDT is at the 78.6% fibo level, which may provide resistance to further recovery in the Litecoin price. Before reversing to a decline, you need to have time to take profit. 

If there is no recovery, the price willAt the lower LTC, it will break through the 61.8% Fibo level, then at the next support level we will buy another 1 LTC at the rate of 45.00 USDT and still expect the pair to recover. Graphically, the diagram can be represented like this:

How much can you earn on trading to a novice investor. Part 84. Trading (continued)

To do this  we place a pending order forpurchase of 1 LTC at a price of 50.00 USDT on the Binance exchange. We will tell you how effective our trading plan will be, and whether the buy order will work at all, in our next publication.