Aleksei Shevchenko

How to Create and Track a Portfolio

Speedy growth and even speedier decline is a hallmark of the cryptomarket. Putting together a good portfolio on this volatile market is most the professional form of trading, a form of trading that many new traders strive for.

Practice has demonstrated that most people buy bitcoin when the price has already risen. That happens because of the famous FOMO, when your news feed shows incredible gain percentages. It is during this time that professional traders pay attention to their portfolios and even plan to sell.

All different kinds of financial markets experience defining cycles. A market cycle begins with a phase of build-up, then a growth phase, a distribution phase and finally a decline. Traders can misinterpret these phases for all kind of reasons, leading for the destruction of their portfolio in the wake of the trade cycle.

How can large players build up their positions?

Large investors build positions over long periods of time. Building a large position can take weeks or even months. And for that, there need to be large sale volumes. That’s why large investors often put together their portfolios when most investors are not even thinking about purchases.

Notice that after the market falls, it enters the building-up stage. That is to say that every decline in price results in a flood of large purchases by big players and then the growth phase begins. Investors can make purchases as soon as the end of the decline phase, when sales volumes are beginning to decline.

A beginning trader experiences the exact opposite. Their purchases occur during the distribution phase, when big players are unloading their positions.

What’s the Best Way to Design a Portfolio?

Based on what we have discussed about designing portfolios, we can now trace out buy zones and follow them.

Beginning to build positions must be undertaken only when a chart shows visible levels of purchases with an uptick in volume. You need to be sure that there are others who will come after you who want to put their purchasing power to use. You definitely need to be careful about the exact period of time over which such a trade level is reached. The build-up phase does not appear over one or two days. Very often impatient traders begin to buy too early, before they are convinced that the price will not fall further still. This is what happens when FOMO controls your actions. Buys at certain prices should happen over a longer period of time. The longer the build-up, the stronger the price movement.

Because building a position is not a quick process, you have time to create a portfolio at good prices, buying coins on different exchanges. For that, you need to use a multi-exchange terminal. Since you have accounts on many different exchanges, it is much more convenient to track prices on all these different markets in one window.

For designing and keeping track of a good portfolio, using professional tools is a must. With their help, you’ll save time and you can buy your coins at the best possible price.


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