Micro Cap Investing Strategy
In the micro-cap space, the most important thing to know is that it doesn't really matter what the project is, but how people think about the project. This is especially true in the Micro-Cap Play-to-Earn Gaming industry.
The rise of Dogecoin or even Shibu-Ina isn't really about the project itself, but more about the marketing and hype around it.
While the project's fundamentals are important, it's the perceived value (by investors) that is the most important (and the marketing team backing the project).
In the beginning, the price of Micro-Cap projects doesn't have a lot to do with the business. It has more to do with what investors think about the business.
So, when investing in the micro-cap sector, one of the most important things to think about is how other investors will see the investment. An early price mover is what investors think, and how much people talk about a project. This is called "hype."
If you want to invest in a small project, you need to be careful because the price of these projects is mostly based on what investors think. This means that the market price can be very volatile, so it's important to limit your time in the market.Risk = Time in the market
The longer you stay in the market, the more risk you take. Get in and get out in the shortest amount of time possible, with the best return.
The goal of this strategy is to make money as quickly as possible, which is very different from the HODL or diamond hands strategy.Have a Plan B in case you have to leave.
Be ready to sell. This is how you get your money back. Period. Every cryptocurrency that has ever been traded has a "bell curve," especially after a big rise in price.
In this case, the price will go down. It's a sure thing. Be ready to sell. Cryptocurrency traders often make this mistake.Leap Frogging your progress: Making your gains faster
A lot of people use this strategy to get to where they want to go. Each train car can only go so far. Afterward, you take your gains five to ten times.
This strategy does take more time and effort because there are more trades. This is not a buy-and-hold plan. There is also more risk that the trade will go bad.
In this strategy, you don't have to find "the golden one" and then hold on to it. There are a lot of steps: buying, selling, making your 5x-10x, and then doing it all over again.Keep up with the Market
Buy into a project before it gets popular, then sell when people start talking about it. If you want to do something that's different from everyone else, do it. This is called "contrarian investing."Conclusion
As always, this is not financial advice. This is just how I choose to invest in this very specific part of the market. Different businesses need different ways to invest.