I have a bunch of stocks and mutual funds in my portfolio. I’d like to sell some small percent of these “traditional” investments and purchase some cryptocurrency. But I’m trying to figure out how to calculate when is the best time to do this transfer.
Basically, what I want is to see some chart and setup an alert that tells me:
- When the stock price is high (relative to my fiat currency) and
- When the price of the cryptocurrency is low (relative to the above fiat currency)
First, how do I do this theoretically? Is there some way to construct a chart that simplifies two lines into one line, which is some calculation of the two lines that shows a single line with points very high on the y-axis when the above two conditions are true, and very low on the y-axis when the above conditions are not true?
Second, how can I setup an alert that tells me when the chart above is at some sort of year-time-high, so I can be alerted that “now” is a good time to sell stocks and buy the given cryptocurrency.
First of all, don’t try to time the market. You will never time it right.
Second, what you are looking for is called “technical analysis”. That is based on the theory that all the information you need to analyze a stock or crypto token is in the market data (price, volume, etc.), and by analyzing the market data over time you may be able to see a signal as to when to make a market move. There are lots of resources available online to learn the basics.
And finally, let’s say you read up on this, figure out some of your own good signals, and start to trade based on them. There are professional trading firms who do all that, algorithmically, much faster than you can. You may make money, but it will always be after they do.
Still want to do it? Good luck!
Is there any resources available for technical analysis, specifically going from stocks to crypto? I’ve searched and searched, but couldn’t find anything.
There is, but technical analysis is a pseudoscience. It’s nonsense.
Technical Analysis is a pseudoscience, but it is not nonsense. It is simply pattern recognition, along with an observation that these patterns tend to repeat… until they don’t.
MACD - moving average convergence and divergence.
Start off with that.
I’m in agreement that you shouldn’t try and time the market but I also get a feeling there’s not a ton of money at play here so we can say it’s a learning opportunity.
Yeah look at how to analyse markets and trendlines in equity markets. Take out money before a crash it’ll say, wonder who woulda thunk.
Crypto I’m not very interested in, but follow the news. Do as those on power do. Trump for example is there to make himself and his cunts money, put your money where they do.
This is risky stuff tho. The riskiest thing I’d recommend is equity funds honestly. And stay diversified.
Buy low, sell high, tada I just told you the big secret. Don’t tell anyone else pretty please.
