Trading strategies in the BUX apps!

Dear BUX Community,

As an active user to the BUX X, BUX Zero and BUX Crypto platform I must admit I am seriously impressed by the work and quality from the BUX Team. With now the official community forum being opened I can’t say anything more than the fact that I am happily surprised and honored to be part of yet another great platform!

With that said, I think this forum will be thé spot for sharing inspirations, trading idea’s and having a fun talk between users of these three platforms. So hey, why not setting up a post for this? Integration of users from these three platform could very well sparkle new idea’s in trading as well as in different trading strategies we could all share. I’ll start with mine!

Diversity on the platforms
We all know the perfect adage “Never put your eggs in one basket”, and so should it be on all your BUX platforms! With the three current different tastes of trading (Crypto, Zero and X), you should consider what diversity you want on each of these platforms. To decide, wonder what your trading strategy is. If you like Crypto’s, you’d obviously choose BUX Crypto as a bigger basket. But if you like to trade aggressively in stocks, having your largest basket in BUX X would be perfect. Obviously, if you like to keep your investments on the longer term, BUX Zero would be your go.

With this said, the diversity in my opinion should be 50% / 25% / 25%, whereas the 50% would be the main platform by your trading strategy.

Diversity in each investment
Whether your main platform is BUX X, Crypto or Zero, you must further distribute your investment into smaller baskets. Choose your profession (like oil, or gaming stocks) and put no more than 75% of your investments in these. The other 25% could still come in handy if you’d like to invest in something other than your profession.

Within your profession, I’d recommend not to invest more than 10% of your investment in one stock. Spread out the risk on different stocks and even better is to keep it safe to finance new positions later on.

When to step in?
The greatest question for starters and even more experienced traders, at what point to I get into a stock? Well, this could also be split into two main trading strategies: Fundamental investing or Technical Investing.

Fundamental investing will be focusing on news happening at or around the stock, think about quarter results or a competitor turning bankrupt.

Technical investing will focus more on chart patterns. This is more my profession and would love to talk about this in another post!

When to step out?
Ah, the second greatest question. Once you in, you must go out once. The ‘outry’ target is hard to call when you’re in a position, as emotions could play up such as “It might go even higher than this”, or “I’m currently at a loss, but I think it will recover”. The key factor here is to set your targets pre-advanced, so these questions will never pop in your head once you have your position open.

BUX X has a great functionality for this, called the Stop Loss and Take Profit. Once you have opened your position, you can set up these values, so you can predetermine the levels on which you want to take profit or take your loss.

With this, you should also make a consideration. At how many trades do you think you will make profit? Be realistic, nobody can be 100% right. If you make 1 of the 5 trades into decent profits, you are already doing a great job! With this ratio, you can set up your profit/loss easily. If you want 1/5 to be your profit ratio, set up your loss 20% below the current position, and 100% as the take profit!

So, just a handful of tips from my side, but I bet you have even better ones. Please let me know yours in this tread, I’d love to know!

5 Likes

Thanks for the great topic @DiepieBUX !
I would also like to add something regarding the basket sizes. In my opinion, BUX X offers much more opportunities to either dramatically increase your portfolio size or to lose everything. BUX does a great job when it comes to educating beginner traders but nobody can prevent one shorting DAX overnight using x20 multiplier. This is a good way to have a very bad morning the next day. Along my way I did few bad choices here and there and perhaps it would be useful to have a sort of SAFE TRADING pinned post in BUX X section. What do you think?

6 Likes

Yes! Great idea.

Of course, newcomers to the BUX X app already get a small course though the app explaining functions and how to trade safely, but if you’re an oldie like me, you’d probably don’t recognize these thus a refreshing topic would be great!

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