Let me be clear to those new to trading and investing.
#1 This is a FUNDAMENTAL ANALYSIS and not a Technical One.
#2 This is a LONG TERM portfolio strategy that I shared about a month ago with the 70/30 portfolio (link below)
#3 We are now overweight cash as the market continues to correct.
#4 If you are just following I am an Investor 1st Trader 2nd. I implement positional trades during corrections, and swing, day and scalp trades during bull markets.
#5 "Trading Corrections is Risky", and many are simply trying to find flaws in this strategy because theirs failed. PERIOD. Trying to time a market bottom or top is only done on a consistent basis by LIARS. There are NO crystal balls in investing and trading, and successful investing and trading requires Patience and Money Management and knoweledge of probabilities not palm readers.
#6 With a 100k portfolio for example a positional trade should be limited to 2-5% of your overall portfolio. So if you see me say I am adding a 1/4 to 1/2 position here this implies I am adding in 1k-2k increments. This allows me to buy into weakness at multiple levels. I do the opposite in bull runs, I sell small positions into strength.
#7 My speculative portfolio is less than 10% of my holdings and is entirely separate from my core. I can't follow them as diligently so I throw some money at them and let them go.
I have been mentioning over the past month that 2018 will be the year of the smart coin. I have been following specific coins of which some I own or owned, and some I sold during the correction. So where am I looking to add going forward and how am I adjusting my portfolio?
Corrections often provide the best insight as to the where smart money wants to accumulate for the next bull runs and looking at the charts above, it couldn't be more clear, since the start of the correction, that the smart coins are where I want to be positioned.
The upper chart contains fiat coins or coins that act as currencies only. Notice other than OMG' Bitcoin' is still the 600lb gorilla in the space. This is why bitcoin' is my largest holding. The lower chart is of smart coins clearly they have held up better since Dec 21st then fiat coins. I mentioned in my Jan 14th article on NEO' that 2018 will be the year of the smart coin. Note NEO' and XLM' are definitely holding up better than the others even ETH'. Now I am still doing research but my favorites here are NEO' XLM' and EOS'. Of course ETH' was my second largest holding to the epic NEO' run. But that screams demand.
My core currently consists of BTC' ETH' DASH' XMR' BCH' LTC' NEO' XLM' & OMG'. Yes as I stated in the XLM' article I sold all my XRP'. This gave me more cash plus I added some to XLM' (keep in mind we bought XRP' between 16 and 26 cents). Going forward I want to be more positioned in smart coins then fiat coins. I will be looking to add for the long term into the coins on the lower chart, and as the market recovers will reduce one or two of the fiat coins. Which one? BCH' and XMR are the likely targets. Litecoin' I use more than any other coin, and DASH' is organized and marketing like no other. So that leaves BCH' and XMR'. Keep in mind we added BCH' at 300-460 so we are still up, and XMR' has done well since adding in late November which regardless of the naysayers we called it almost textbook!
Bottom Line: I want to go where there is growth and that is going to be the smart coin this year in my opinion. Though I had ETH' as my #1 smart coin, I am starting to favor NEO' here.
For those that still do not understand the difference between TA and FA, look at the Nov 30th call on Bitcoin "Target Hit but It Ain't Over Yet!" posted below for which I will update a TA' for shortly as we hit critical levels that now provide future guidance.
#1 This is a FUNDAMENTAL ANALYSIS and not a Technical One.
#2 This is a LONG TERM portfolio strategy that I shared about a month ago with the 70/30 portfolio (link below)
#3 We are now overweight cash as the market continues to correct.
#4 If you are just following I am an Investor 1st Trader 2nd. I implement positional trades during corrections, and swing, day and scalp trades during bull markets.
#5 "Trading Corrections is Risky", and many are simply trying to find flaws in this strategy because theirs failed. PERIOD. Trying to time a market bottom or top is only done on a consistent basis by LIARS. There are NO crystal balls in investing and trading, and successful investing and trading requires Patience and Money Management and knoweledge of probabilities not palm readers.
#6 With a 100k portfolio for example a positional trade should be limited to 2-5% of your overall portfolio. So if you see me say I am adding a 1/4 to 1/2 position here this implies I am adding in 1k-2k increments. This allows me to buy into weakness at multiple levels. I do the opposite in bull runs, I sell small positions into strength.
#7 My speculative portfolio is less than 10% of my holdings and is entirely separate from my core. I can't follow them as diligently so I throw some money at them and let them go.
I have been mentioning over the past month that 2018 will be the year of the smart coin. I have been following specific coins of which some I own or owned, and some I sold during the correction. So where am I looking to add going forward and how am I adjusting my portfolio?
Corrections often provide the best insight as to the where smart money wants to accumulate for the next bull runs and looking at the charts above, it couldn't be more clear, since the start of the correction, that the smart coins are where I want to be positioned.
The upper chart contains fiat coins or coins that act as currencies only. Notice other than OMG' Bitcoin' is still the 600lb gorilla in the space. This is why bitcoin' is my largest holding. The lower chart is of smart coins clearly they have held up better since Dec 21st then fiat coins. I mentioned in my Jan 14th article on NEO' that 2018 will be the year of the smart coin. Note NEO' and XLM' are definitely holding up better than the others even ETH'. Now I am still doing research but my favorites here are NEO' XLM' and EOS'. Of course ETH' was my second largest holding to the epic NEO' run. But that screams demand.
My core currently consists of BTC' ETH' DASH' XMR' BCH' LTC' NEO' XLM' & OMG'. Yes as I stated in the XLM' article I sold all my XRP'. This gave me more cash plus I added some to XLM' (keep in mind we bought XRP' between 16 and 26 cents). Going forward I want to be more positioned in smart coins then fiat coins. I will be looking to add for the long term into the coins on the lower chart, and as the market recovers will reduce one or two of the fiat coins. Which one? BCH' and XMR are the likely targets. Litecoin' I use more than any other coin, and DASH' is organized and marketing like no other. So that leaves BCH' and XMR'. Keep in mind we added BCH' at 300-460 so we are still up, and XMR' has done well since adding in late November which regardless of the naysayers we called it almost textbook!
Bottom Line: I want to go where there is growth and that is going to be the smart coin this year in my opinion. Though I had ETH' as my #1 smart coin, I am starting to favor NEO' here.
For those that still do not understand the difference between TA and FA, look at the Nov 30th call on Bitcoin "Target Hit but It Ain't Over Yet!" posted below for which I will update a TA' for shortly as we hit critical levels that now provide future guidance.
