- Jay Smith
eToro Weekly Update - Week 21 2018
Stats given cover closed trades for the 21st May - 27th May.
My total realized profit from the past week is +0.33%. Overall the portfolio is down 5.86%
Profitable trades closed: 31
Unprofitable trades closed: 2
Most traded instrument: $EOS / $NFLX (5 trades)
With another hard hitting drop in the crypto markets seeing most cryptos fall by over 15% our portfolio value has dropped substantially this week, down by 5.86%. Despite this I was still able to close 31 green trades for 0.33% realised profit this week. Despite saying last week that I would be trading less the stock markets provided me with some good trading conditions resulting in many small green trades.
Some interesting news this week for crypto involved Mark Carney, governor of the Bank of England making favourable comments regarding cryptocurrencies. He said that he was open-minded to the idea of a centrally governed digital currency. This makes a lot of sense for several reasons, not least potentially bringing more money into the economy as people trade a GBPcoin pair with cryptos rather than Tether for example. The added benefit is that it could make KYC and anti-money laundering efforts easier for the UK as they could potentially track wallets.
In the long term this could lead to central banks pegging their digital currencies to cryptocurrencies instead of their own. At the very least it would be an endorsement of cryptocurrency technology and could lead to further interest from the public in Bitcoin and other major cryptos.
$EOS - EOS is the only crypto I traded this week, buying a dip during this bearish week in crypto we turned some reasonable profits, I did regrettably close one trade in the red which cancelled out the other 4. Not brilliant trading, but we didn’t lose anything either.
Stocks $MSFT - Taking some profit and reducing exposure slightly.
$SEDG - Solar as a whole got hit hard this week with little fundamentals to support the drop, perhaps it was simply seen as overvalued by the markets.
$NFLX - We closed out positions bought earlier in the month and even did a couple of day trades including a small short position I was babysitting. Very happy with my trading here.
$AMD - AMD has finally come back but I’ve closed out all positions for now in profit. I’ll be waiting for a better entry point to get back in.
$TWTR - Twitter has been performing very well recently and we’ve benefitted from the rally, I’ve now taken some profits but will look to keep some exposure.
$SHOP & $SQ - Both stocks have offered some good volatility over the past week for solid gains. Although I did not attempt to short either, I closed a combined 4 trades for profits of between 1 and 3% each. I remain bullish for both companies and will continue to trade them actively and maintain exposure for long-term profits.
$SNAP - Still waiting for that move back up in price, but I have now began taking some smaller short positions regardless, generally these are the trades I babysit the most to ensure we don’t get caught out by a sharp rally. Remaining cautious until we see prices back above 11.
$MU - Micron had a strong week last week enabling me to take profits from my two trades there. This stock is extremely volatile and one that I will likely be trading less frequently in future as I feel the risk of being left holding bags is too high and it does not suit my trading style well.
$MCD - After holding on to this trade for a very long time I decided to take the hit and close at a loss.
$TSLA - Closed one of the long-term positions during a brief rally during the week, my concerns for Tesla are still yet to be addressed, I have no plans to close our final position there currently.
What’s the plan?
The crypto market looks set for another bullish couple of weeks as the RSI and Parabolic SAR suggest the current support level of 7k will hold firm. Taking a step further we are on the cusp of forming a triple bottom descending triangle, suggesting a breakout to the top Again we will try to benefit and pull our money out as we approach the mid 8k range on Bitcoin. The same fundamentals also apply to most altcoins.
EOS and TRON will have mainnet launches taking place towards the end of the week, and could cause volatile trading conditions not only within those two cryptocurrencies, but possibly the wider market due to them both being top 10 cryptos by market cap. If you have EOS outside eToro you can register it on the EOS website for the token swap, EOS on eToro I assume will be swapped for us by eToro. As the mainnet launches and the token exchange takes place there could be some downtime for trading and potentially major price fluctuation. I plan to hold my current trades throughout this period unless there is a good opportunity to make some money later in the week before the launch.
I will continue to be cautious with funds, maintaining a cushion for further potential buying opportunities.