Bandita!!!... Do you want a recommendation???....
Well, I bring you an example of the two most used strategies in the county....
*Strategy 1: Short-Term Trading (STT)*
Definition: Buy and sell assets frequently to take advantage of short-term price fluctuations.
*Strategy 2: Periodic Investment (PI)*
Definition: Invest a fixed amount of money at regular intervals, regardless of the current price of the asset.
Let's see the difference with an example....
*Investment Simulation in $BTC Bitcoin (Year 2023)*
Initial investment: $10,000 $USDC
Strategy 1: Short Term Trading (TCP) 50% ($5,000 USD)
Strategy 2: Periodic Investment (PI) 50% ($5,000 USD)
*Average Bitcoin Prices per Month (2023) in USD*
- January: $23,400 USD
- February: $22,800 USD
- March: $24,300 USD
- April: $26,500 USD
- May: $28,400 USD
- June: $29,200 USD
- July: $30,500 USD
- August: $31,800 USD
- September: $32,400 USD
- October: $33,200 USD
- November: $34,500 USD
- December: $35,800 USD
*Simulation Results*
•Strategy 1: Short Term Trading (STT)
- 12 trades (buys and sells every time the price increases 10% in the month)
- Total profit: $3,512 USD (70.24% profit)
- Final balance: $8,512 USD
•Strategy 2: Periodic Investment (PI)
- 52 weekly investments
- Total investment: $5,000 USD (50% of initial capital)
- Total profit: $2,431 USD (48.62% profit)
- Final balance: $7,431 USD (approximately, considering the final price of BTC)
*Conclusion*
- TCP generated a 70.24% profit
- IP generated a 48.62% profit
- TCP had a better performance, but with higher risks.
So the recommendation is to take profits.....
Good luck to everyone in your investments !!!!....
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