- Rick Rahim trades the whole lot from shares to crypto, and one among his prime picks is litecoin.
- His aim is to make 1% to 2% a day after which compound the features.
- He says it is a low-risk technique if you know the way to execute every commerce and do not panic promote.
Rick Rahim is an energetic day dealer of stocks, crypto, and derivatives together with choices.
He is additionally a self-described serial entrepreneur who primarily sells merchandise on Amazon. However he realized that worthwhile buying and selling is far more rewarding than operating a enterprise.
Whereas he was determining his technique, he based an automatic trading software firm known as ProChartSignals. The paid software program’s algorithm combines numerous indicators similar to momentum, overbought and oversold alerts, purchase and promote stress, transferring averages, and buying and selling quantity to assist merchants decide the optimum entry and exit factors for shares and crypto.
“There is not any overhead besides you want the cash to commerce, however you may commerce in your underwear from wherever on this planet,” Rahim stated of day buying and selling. “You may be on trip along with your spouse and have your laptop computer. Heck, these days you are able to do it out of your telephone.”
Whereas he can commerce nearly something, one among his go-tos is litecoin. Created in 2011, it was one of many earliest altcoins, designed for reasonable and quick peer-to-peer funds.
“The primary cause I commerce litecoin is as a result of I am not mentally dedicated to purchase and maintain it the way in which I’m with bitcoin and ethereum,” Rahim stated. “I completely consider bitcoin will go to $100,000, if not method by means of it, very shortly, and ethereum as much as $5,000 and $10,000. So I do not wish to be out and miss the massive runs.”
He views litecoin as a short lived utility used for the sooner switch of digital belongings — in contrast to bitcoin, which he sees as a long-term retailer of worth, and ethereum, which has sturdy technological use instances.
As soon as the emotional attachment is faraway from the asset, coming into and exiting positions turns into simpler, Rahim stated.
His buying and selling technique
Rahim stated that by utilizing the ability of compounding in a proactive method, he’d been capable of improve his litecoin place many instances over.
At a minimal, he strives to purchase low and promote excessive, a course of that is worthwhile for each asset. It really works particularly effectively for litecoin due to its regular worth fluctuations, Rahim stated, including that on good days you can also make 2% to 10%. When you see the features, get out, lock up your income, and repeat.
Although features aren’t assured, Rahim advised two easy rules-based instruments to enhance the percentages.
The primary is stop-loss orders, which may be arrange by means of a brokerage account to chop losses. A dealer units the worth at which they’d need their crypto bought within the occasion the worth begins to drop. The set worth must be decrease than the market worth on the time of the order.
For instance, if a dealer is just not keen to trip out a sell-off and wait till it recovers, a stop-loss can restrict losses and take income by executing a sale if the crypto’s worth drops under a sure level, Rahim defined.
However remember there is not any assure of execution on the given worth, significantly when the market is diving. In such a situation, the sale may set off at a worth decrease than what a dealer had punched in. And even a stop-limit order, with which a dealer can specify the bottom doable sale worth they need, could not discover a purchaser if costs are falling extraordinarily rapidly.
His second easy software for threat administration is restrict orders. For a purchase order, a dealer can preset the utmost worth they’re keen to pay. If the worth of a crypto drops to a positive charge, the brokerage will mechanically buy the crypto. Right here once more, the order could not get stuffed in a fast-moving market.
Crypto merchants are not any strangers to sharp
volatility
, and so they obtained one other style of it earlier this month. As of Friday, bitcoin’s worth was down by about 42% from its November 10 peak. Litecoin was down 61% from its Might peak; that slide featured a 36% single-day drop on Might 19.
Whereas altcoins are high-risk investments, Rahim believes litecoin is much less dangerous than a few of its friends as a result of it has been broadly accepted. It is the 18th largest by
market cap
and its customers have stored it round for 10 years despite the fact that greater than 2,300 tokens have failed, in keeping with Coinopsy.
However earlier than throwing cash at a commerce, Rahim recommends finding out litecoin’s chart over a span of days and hours. Another choice is to benefit from paper buying and selling earlier than attempting the actual factor. The aim is to pay attention to the help and resistance traces, as a result of these will inform your entry and exit factors.
“Your threat is that it will drop drastically,” Rahim stated. “And in the event you’re utilizing cash you may’t afford to take a position, if one thing in life occurs the place it’s a must to pull your cash out at a loss, you then completely lose. Now, to me, I solely make investments what I am keen to not want long run.”
That stated, Rahim is not precisely buying and selling with spare change. In a single occasion in November, he moved as many as 120 litecoins ($19,725) in a commerce, in keeping with a duplicate of his brokerage account assertion that Insider seen. Meaning his each day upside can also be considerably excessive. His account confirmed that in at some point he bought about 118 litecoins at about $199.10. On the identical day he bought about 354 litecoins when the coin was buying and selling between $199.90 and $206.
However even in the event you begin smaller, with $100, $1,000, and even $10,000, and also you earn 1% to 2% a day, you may turn out to be “obscenely rich,” Rahim stated. Nonetheless, you’d have to reinvest all of your features to seize the upside over time and create a snowball impact.
“It is obscene how rapidly you can also make cash. And everyone knows what they are saying: The wealthy hold getting richer,” Rahim stated. “So I am attempting to show folks how to do this, even with small quantities. And that is what wealthy folks do.”
Rahim survived the 2017 crypto crash by panic promoting in time to nonetheless see a little bit of revenue. However he stated that if he had held out, his place at this time would have been tens of millions of {dollars} larger.
Within the meantime, weaving out and in of trades in smaller cryptos like litecoin is his method of turning fast income reasonably than needing to attend just a few months and even years to see returns.
