Do you day trade or short term trade crypto and digital currency? How do you measure a successful trade?
I think a lot of people would look at this trade as a success:
Approximate Value Per Coin when Acquired: $11.81 USD
Approximate Value Per Coin when Sold: $12.36 USD
Gain/Loss: $0.55 per coin or 4.63%
I look at it as a failure because:
BTC Per Coin to Open Trade: 0.0015
BTC Per Coin to Close Trade: 0.0014
Gain/Loss of BTC: -0.0001 per coin or -6.67%
So while the USD value went up, the BTC value went down. This was caused by the BTC/USD going up during the period the trade was open.
You would only come out ahead on this trade if you converted your BTC to USD when the trade was closed and even then that’s arguable I think.
Likewise a trade where the USD Gain/Loss is negative but the BTC Gain/Loss is positive is a positive trade or a winning trade.
Be sure whatever method you’re using to track your trades computes both UDS and BTC gain/loss so that you can know both as you’re deciding when to exit.
My goal is to gain more BTC so the above trade example (which is a real trade) was a loss.
Fred