Before I go on with the update for Dec 2013, I want to wish everyone a prosperous and happy 2014! So without any further delay, let’s dive in to my update. Note that the next update would be on 31st Jan 2014.
What I did this month?
I have topped up my account with an additional 1.5799 BTC which equates to about US$1533.42 on 1 Dec 2013.
Hence, my total inital capital investment for Dec 2013 is:
US112.61 + US$20 + US$200 + US$172 + US$200 + US$1533.42 = US$2258.03 (including Aug to Dec)
My robot’s performance for Dec 2013
Monthly profit: US$1269.05 – US$3273.62 = – US$2004.57
Monthly return: – US$2004.57 / US$3273.62 = – 61.23%
Actual Profit/Loss: US$1269.05 – US$2258.03 = – US$998.98 or -43.80%
Why did this happened?
I am using the bitcoin price chart from Bitstamp.net because the price is very close to BTC-e and I couldn’t find BTC-e’s price chart.
If you observed carefully from the chart, the price of bitcoin hit an all-time high of US$1100+ on 4 Dec. That is when my portfolio exceeded US$4000+. However, when China banned all financial institutions from using bitcoins in their dealings on 5 Dec, the price of bitcoin dropped from US$1100+ to US$500+ within a span of 3 days. This resulted in a huge reduction in my portfolio from US$4000+ to a couple of hundred dollars.
However, when the price of bitcoin dropped to a new low of US$400 on Dec 18, my portfolio was able to withstand the impact without much changes. This goes to show that the robot was effective in preserving my capital investment when the bitcoin price changes were too extreme.
Such extreme changes are common since bitcoin is still a relatively new concept compared to fiat currencies which have been around for many years. When it comes to trading, there will always be an element of risk involved. That is why I would encourage you to put 10% of your monthly income to be invested and not all of your savings. You cannot win all the time but if you were to stay steady with your efforts, I am sure you will turn out to be a winner at the end of the day.
Most importantly, I am in this market for the long-term. Hence, I am not too concerned about the changes that are happening around the world.
That’s all for this month, folks!
Feel free to leave your comments below.
To your bitcoin trading success!