TON's Speculative Tokens: An Experiment in Micro-Trades

3 months ago

Three days ago, I failed to share the reason for the awakening of my trading instinct. It was my experience with the mini-apps in the TON blockchain that caused such a rediscovery. The trend in this chain introduces so many tokens that could either provide an opportunity or spell financial doom.

I already shared in my last two posts the mixed experience I had with the airdrops on Ton:

As a result of my activity for close to three months, I came up with an idea to create a watch list of speculative tokens and observe their price action. If holders of any token will suffer extreme fear, that to me is a good opportunity for entry. Of course, I will stick with my idea of micro trading and micro earning. A $5 USDT capital and a $0.50 USDT reward are enough. So far, in trading DOMO, my first try was a disaster. My 15 USDT turned 3 overnight. I thought I was buying a bargain and the token was already oversold and ready for bounce. I was wrong.

However, as I said this experience reminds me of my trading background. I need to apply mass psychology if I want to become profitable in this experiment.

For the last seven days, I had seven trades, of which five closed in gain but the last two suffered losses. I was too optimistic at first. As I observe the price action of the token and the speed of posting orders, this reminds me of HFT - High-Frequency Trading. A human affected by emotion does not stand a chance against a bot that executes trades very fast taking advantage of small price discrepancies.

Since this is just a test, I speculate that those who use these algorithmic tools are doing it for profit and such a goal will only take place if the price is volatile. In other words, if traders become suspicious of the token's manipulation and abandon it, the price will become static and stable and so the profit goal will never materialize.

For those who stay, the fight will turn emotional and that is why sticking to a trading plan is a must.

Below is the result of my trades for the last seven days:

MEXC Trading Account

Date	Token	Quantity	Price	USDT Value	Position	Gain/Loss
19 September	DOMO	32,250	0.0002406	8	long	N/A
20 September		32,250	0.0002575	8.30	short	+$0.30
		36,613	0.000232	8	long	N/A
		36,613	0.000244	8.20	short	+$0.20
21 September		34,113	0.0002052	7	long	N/A
22 September		34,113	0.00022	7.5	short	+$0.50
		29,411	0.00017	5	long	N/A
23 September		29,411	0.000188	5.52	short	+$0.52
		37,313	0.000134	5	long	N/A
		37,313	0.0001438	5.36	short	+ $0.36
		13,986	0.000143	long	N/A
24 September		13,986	0.000129	1.8	short	-$0.20
22 September		27,624	0.000181	5	long	N/A
24 September		27,624	0.0001443	3.98	short	-$1.02

As you will observe, my last two trades ended in losses.

Whether it is in the stock market or cryptocurrency, it is easier to trade in an uptrend. Achieving a profitable trade in a downtrend like DOMO isn't easy. I should have abandoned this token, but I got curious about its action and I find it challenging. You know, I see this as a good therapy or diversion when I am bored. Soon I will test other tokens. Of course, among them, if my capital grows, HIVE will have a special place, not for short-term trading like the Meme coins, but more like a medium-term holding for several weeks taking advantage of any pump.

As for my watchlist, I came up with the following names: NOT, GALA, DOGS, CATI, RBTC, GMEE, WAT, CATS, and HMSTR. All these tokens, in one way or another, are involved in the ongoing Tap-to-Earn airdrops on TON. As such, I am expecting a massive dump and a potential bounce that could provide a trading opportunity.

Posted Using InLeo Alpha