My SBD/Steem "Low Risk" Trading Plan

I feel silly having to start my post off like this, but feel it's needed. The below mentioned is my plan, my advice, and reasons for sticking to my plan. This is not financial advice and you should never invest more than you can afford to lose. I just started trading crypto about 6 months ago and have only 1-month experience of doing so.

I love Bitcoin and am trying to accumulate as much as possible, as fast as possible, but I'm afraid it's growing too fast. I realize if I trade SBD for Bitcoin right now I'm getting 3x as many Bitcoin as I should normally, but I don't see a drop down to $4,000 out of the question. I don't think it's likely, but most people at the time never expected the Mt. Gox issues. After the lessons I learned during the altcoin strength this summer I'm staying away from all cryptos at ATH's when trading.

I've recently got the trading bug again and after the crazy SBD spikes a few weeks ago, I decided to see if I could start making some money on the internal market. It's as easy as buying Steem when it's cheap and selling for SBD when the price goes up. Over the past week or so I made one trade at 0.6$ (SBD/Steem) and sold at 0.7$ (SBD/STEEM) and another I bought at 0.5$ and sold at $0.65. Which each trade I might have made 1 or 2 Steem, but just trying to test Proof of Concept at this point.

What you're looking at in the above graph is nothing more than the price of Steem divided by the price of Steem Backed Dollars (SBD). Normally this is nothing more than the price of Steem as SBD should be equal to 1 Dollar. However, at the time of writing this, the price of SBD is $3.152 and the price of Steem is $1.38. To get the above decimal you take $1.38/$3.152. This gives you a value of $0.438 per Steem.

Normally all you'd have to do is watch the value of Steem. If the value of Steem is going up you'd want to start taking some profits into SBD. If the value of Steem is dropping you'd want to use some SBD to buy some Steem. With SBD not at the $1 peg right now you have to watch both. If the value of SBD is increasing faster than Steem you want to use SBD to buy Steem and if the value of Steem is increasing faster once again you'll want to sell Steem for SBD.

Since I've joined Steemit the lowest I've seen Steem was around $0.8 with a pretty strong support at $1. Once SBD drops back to it's $1 peg, the lowest I expect the internal market to drop back down to is $0.8, but more than likely it will be $1 or above. If you can get Steem for $0.5 or less, you can almost guarantee the value of your SBD/Steem will double. The nice thing about trading like this is if either of these two goes up or down you're guaranteed to profit. The only way you lose is if you aren't patient enough, or both the price of SBD and Steem fall through the floor.

I also feel like Steem is highly undervalued currently and with some good improvements and SMT's right around the corner, Steem is set to greatly increase in value over the next 3 - 6 months. For the present, I'm pretty satisfied with accumulating as much Steem as I can over the next few months. If you have any questions leave it in the comments down below and if you've made it this far Thanks for Reading!