I would like to introduce you to a crypto investment strategy I will be using called the little old lady strategy by @briambeemish and @davincij15 both can be found under those names on twitter and youtube.
Recently @davincij15 has received lots of attention on reddit and went viral, he has been interviewed by many in the crypto space recently.
He talked about Bitcoin very early on and believed in the tech, even after he received extreme criticism. He mined BTC and started investing into alts.
He called the top of the previous bull market and cashed out into fiat @ 17000 leaving 10% for the market. As he likes to say.
MMCrypto jumped at the opportunity and they have a great vibe and have done 5 interviews with the legend himself. Here is his channel
The little old lady only buys when it is a sale. She draws her Fibonacci retracement and calls her broker and starts nibbling at 61.8, 78.6 and 88.6 Fib levels. But in Crypto you can even start as low as 90%+ retracement levels. I will show you now with the steem chart below.
She never invests more than 2% in one coin and she assumes it will go to zero. She never invest in rising markets and she always looks for bargain prices as low as she can get them.
There are fundamentals she can do, but this post won't go into it that much as we will use STEEM/BTC.
I always want to take profit in BTC, because I currently believe BTC will be a sounder money than gold. But with this strategy she will still have her steem bags and would have taken some profits making the bear markets much more bearable, excuse the pun.
Below is the Steem/BTC pairing on trading view with a 200 ma and a Fibonacci retracement from the low till the top.
Flat markets where the 200 MA right at or near the current price can be purchased just below the market price or just above the last 14 period low.
As you can see steem is on an extreme sale of 95%+. LOL
This is what the little old lady loves. She even started nibbling at 60%. She must be able to take 50% red on this strategy for long time. But I can modify her strategy to the 90 fib levels, because crypto is so volatile.
Now lets say she buys 1000 steem @ 0.0000700 BTC she waits until the asset doubles in value 0.00014 and sell half of her holding 500 which is her initial investment. She then waits for for the coin to double again at 0.00028 and takes out half again 250. And so forth.
When we first double we are only crossing the 200 ma. Which gives you much more room to move. As you can see on the top chart. Steem/BTC topped out at 0.006 and we are buying at 0.00007. That is 7000 sats vs 60000 sats. That is a few doubles and we could easily see much higher levels in the next alt season.
Now if she really likes the coin like I love steem. She waits for a correction and pulls up her Fibonacci retracement and she can now invest half of the profit from the first trade back into the asset at the 78.6 level so she buys 250 more steem after the correction. This now becomes a new trade and the same principles are implemented. She can continue investing back into the asset and accumulate more. The sell orders are set before the time so they can go off without her ever having to watch them.
I am just a dude on the internet. I do not want to make the mistakes many people made in the previous bull market including myself. Do not take this as financial advice, because you need to be convinced of your own strategy otherwise you will sell when you shouldn't. This is my journey
Please refer to davinci's original steemit post if you want more info steempower vs the little old lady investing
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