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Opportunity Cost and Double Dip
🕑 Added 2021-09-08 11:07:57 +0000 UTCWhat is Opportunity Cost?
Opportunity Cost is a very basic term even outside of FUT Trading which just means “missing out on other profits” if you break it down to the core.
Example: Buying MM Cards on Monday morning with the SB Rewards and selling on Thursday evening with the SBC is a very common “Opportunity Cost” situation. You can double your coins with the MM Cards, but you will miss out on Tuesday, Wednesday, and Thursday for other potential trading moves.
99% of the time it's smarter to wait for the Thursday Rewards to buy your MM Cards as it’s a shorter hold time for the same price and you have additional days to trade!
If you want to trade and invest the most efficiently, you always aim for the best value in hold time/buy price. If you can wait 2-3 more days and still get the same price, it’s usually better to wait out.
Double Dip
Double Dip is a bit more complicated to explain, let me show it on a graphic!
That's a Double Dip!
If your investment is rising but could potentially go lower than 5% than the current prices, it's smart to sell at the current peak and rebuy during the next dip. This is called Double Dip.
The 5% is very important because that’s your tax on every card on Fut. If the next low point is much bigger than 5%, it's really smart to use this concept!
Example: Player A buys a card for 50k and it keeps rising until 100k. He keeps it even with the risk of a dip. In the end, he sells that card for 150k and makes 92,5k profit (150k x 0.95 – 50k = 92,5k)
Player B buys a card for 50k and sells it at a peak for 100k. The card dips back down to 91k in the dip and he rebuys it at that price. He later sells it at 150k and makes 96,5k profit ((100k x 0,95 – 50k) + (150k x 0,95 – 91) = 96,5)!
As you can see, Player B is using the Double Dip concept and makes 4k (8% higher ROI) more profit!
I love the Double Dip concept and it's even better if you can sell in the hype on top. The side effects are really good like escaping panic, being ahead of people, having coins liquid at a time when people are invested, etc. It saved a lot for me last year!
Use of both ideas
In my opinion, it's important to know both concepts and have these ready if needed. These are key concepts that I think make the difference between good traders and Top Tier Traders.
You can also ignore both of these concepts at times if you know the risk and think it's smarter to follow your way as long as you make a profit from it! It's not always possible to be online every single day and trading the best possible way.
Summary
Look out for the best hold time/buy price ratio
Look out for a potential double-dip
Advanced concepts to make a bit more from your trades
