BitMEX is a cryptocurrency trading platform in which you can utilize leverage of up to 100x, enabling you to make large orders with a smaller relative equity. I have been intrigued by trading for a while now and have decided to bite the bullet and create a BitMEX account dedicated to my day-trades. I am to provide updates on my blog to hopefully provide an insight into trading for others, whilst also acting as an accountability for myself, so I can learn from both my winning and losing trades.
My experience with trading previous to this is very limited, whilst I have made the odd trade on occasion, I HODL 99% of my portfolio. That being said, I have had a keen interest in trading and have learnt key indicators such as trend-lines, support/resistance, MACD and RSIs. I will hopefully utilize this TA to my advantage, whilst learning other techniques as I go along to further develop and improve upon my ability to make a profit.
As mentioned previously, I will ensure to stay accountable for my actions in these posts, documenting both my profitable and not so profitable trades, alongside analysis and after-thoughts of how they went.
So, without further ado, let's talk about my first ever trade on BitMEX!
The image above displays my account on BitMEX, and the associated first trade that I conducted in my order history. I won't go through all the details here but if you have any questions regarding to anything in the picture or how to trade on BitMEX in general, please leave a comment below and I'll try my best to help you!
So, in essence, I'm not proud of my first trade whatsoever.
All the TA I had learnt went down the pan, I was purely listening to opinions on a discord channel and the Trollbox on BitMEX and the general market sentiment seemed to be that it was definitely going to go down from 9021 so I decided to short one contract (equivalent of $1).
Much to my dismay, the price started to rise, even though the general atmosphere around the situation was indicative of a price drop. With this in mind, I increased my contract amount along the way up, similar to dollar cost averaging, meaning that my short position changed to an average of around 9130 or so.
Even though a mere $10 was at stake here, I couldn't leave the screen, I was hooked to the charts and was constantly hypothesizing about potential movements. Thankfully, it dropped to 9047.5 in which I was able to buy 10 long contracts, cancelling out my position with a tidy 1% profit and a successful first scalp of the market.
Due to my risk-aversion I will aim to scalp for the most part, opposed to longer swing trades, as it suits my personal trading mindset.
To summarize, I made around 1% gain on the $10, equating to 10 cents profit.
I have learnt that this stuff is hard!
The more you think you know, the more you realize you're in the deep end. I felt helpless in my first trade and I was just lucky that it went in my favour. In future I will ensure I do more TA before I execute a trade, drawing my own graphs on trading view etc.
Going forward I will also start to utilize leverage as I become more confident with my strategy.
In the near future, I will probably start trading with approximately 100 contracts on a 10x leverage. This would mean that, a successful trade with 100 contracts on 10x leverage (i.e using $10) in which I managed to gain 2%, would actually equate to a 20% ROE, so $2 in this case.
One thing that I need to remember to bear in mind, and I think it goes against natural human psychology, is that it's okay to lose sometimes. I was on the edge of my seat the whole time, even at the prospect of losing a mere 10 cents and I think this is purely because I have an aversion to lose at anything.
But in the day-trading game, you will lose.
I just need to develop risk-management and portfolio management skills to ensure the best long term profits. At the end of the day, if you have 3 winners and 2 losers, and you've set good stop losses and let your winners run (within reason), you're still going to profit overall.
If you are tempted by day-trading on BitMEX, even if it's just for a bit of fun or as a side hustle, you can use my referral link here : BitMEX to enable a 10% discount on fees for 6 months!
Please do your research though before trading, it's a difficult and volatile market so beware and only trade what you're willing to lose, especially if you're using leverage!
Donations:
BTC Address - 1JQGxuVLQf1hAz6i2dpitvGNvkTSKD8xAC
LTC Address - LdHvzzi5ZhZZr9Ce5gek9rgmJXbk78tQD7
ETC Address - 0xae041220e640Ca52BCa8644B178682fC12705cBA
NAV Address - NgQtdkT6kQaYNqEMrhc9ainga3eRv9xzXR
