Updating the situation, as I've stated earlier, last Monday was supposed to be the start of trading with the use of the gathered funds. Seeing the steep decline in the LTC price over the last two weeks, and a very volatile downward movement on Monday (18th of August) I've decided to contact all the investors through e-mail asking for their permission to hold on to the gathered LTC funds, so as not to sell the LTC at a swing low (at around 3,4x USD). Since that time the price started climbing its way towards a more reasonable price, being 5,76 USD at the time of writing. I will now start selling the LTC in order to start trading on Monday. Thank you for your trust in my judgment. Below I present the e-mail sent to the shareholders:
I would like to thank you for putting your trust and your money into theSolution Series A Land Fund operation. I will do my best to keep you satisfied with my work. My goal is to reach a global scale, but I need to start small, to make myself a name, to become recognizable. Thanks to you, I’m able to achieve my personal goals and at the same time meet your investment targets.
I’m just one step away from converting the gathered funds and starting trading, but as we have recently seen a rather steep decline in LTC price, I would like to learn your opinion on holding a bit longer to LTC, in order not to sell the LTC at a swing low. The decline is said to be related to BTC weakness, there are numerous opinions but few facts, I’m far from speculating about the sell-off’s nature (despite trying to gather as much info as possible), as this is not my business and not my field of expertise, one thing I can tell from my trading experience is that it’s not good to join the crowd which is in ‘panic’ selling mode. We’ve seen BTC or LTC price declines over the past months/years, where after falling the price rose back, it’s a common pattern- a lower price is perceived as a good opportunity for those wanting to buy but that were on hold, so they join the market, start to buy, thus contributing to a rise in prices. I may be wrong at certain times, as altcoin markets may not fully resemble financial markets, but the nature of people will be the same, crypto currency investors will face the same emotions of fear and greed as fiat currencies investors, will make the same mistakes.
I prefer to avoid mistakes, this is why I am asking you about your opinion, or rather for your mandate to stay a bit on hold with converting the gathered funds. I know it’s not a lot of money, but it doesn’t matter if it’s a couple of bucks or a couple of millions. The principles are the same. What I would like to do is to set a minimum LTC price at which I would definitely sell the LTC to prevent from further loss. I would set the price at around 2,75-3,00 USD, so if we hit this level, I’d sell the gathered funds. If we don’t hit this level for a week, and the price starts to climb back, I will consider selling the LTC at a higher price.
I might be wrong, as I’ve said, and there is one more factor that needs to be taken into consideration, namely, fiat currencies are regulated, governments and central banks have a broad scope of means allowing them to control their currency, influence its behaviour, and in cases of steep declines act to stop or remedy the sell-off. In case of crypto currencies, there are no means of controlling their value, so a decline or an increase in value may be much broader.
My bias towards crypto currencies decreasing or increasing in value is neutral, although I am an enthusiast. I’m not optimistic predicting rises, and I’m not pessimistic predicting falls, I don’t predict and try to be neutral and take it as it is. But you may be optimistic or pessimistic, this is why I’m asking about your opinion.
Please keep in mind one thing, that if the price is going down, this means that there is someone willing to sell, but there is also someone willing to buy, this means that there are some buyers hoping that the price will go up, buyers that will later contribute to a bull market.
Here is my question, are you for holding to LTC in order not to sell at a very low price, allowing at the same time a definite sell-off as the price reaches 2,75-3,00 USD per LTC, or are you for immediate conversion to USD. You may also abstain, leaving the decision to me.