Buy on the Way Up or on the Way Down - page 2.

BadBear

legendary

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Quote from: grod on October 12, 2011, 09:59:43 AM

Quote from: S3052 on October 12, 2011, 01:40:35 AM

or.. you miss the train and need to pay a much higher price to catch up...

The only ones with a NEED to buy are those who shorted on bitcoinica with a 5:1 margin. They deserve their loss. The rest of us can hedge our BTC sales by buying mining hardware if we choose to. It's just that I feel there are way too many bitcoin bulls for $4.20 to be anything but a resistance level.

Besides, why do I care if I used to buy at $3 to sell at $3.30 and it jumps to $100 overnight? I'll just buy at $100 to sell at $110. Buy and hold is a *horrible* strategy in a bear market.

Exactly. Need to keep moving if you wanna keep up. Just buying and leaving them sitting there isn't a good idea at this stage. I won't be going all in until I see clear signs of a reversal (and not just another bounce). Market like this means time to play, lot of opportunity to make money still.

grod

full member

Activity: 154

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Quote from: S3052 on October 12, 2011, 01:40:35 AM

or.. you miss the train and need to pay a much higher price to catch up...

The only ones with a NEED to buy are those who shorted on bitcoinica with a 5:1 margin. They deserve their loss. The rest of us can hedge our BTC sales by buying mining hardware if we choose to. It's just that I feel there are way too many bitcoin bulls for $4.20 to be anything but a resistance level.

Besides, why do I care if I used to buy at $3 to sell at $3.30 and it jumps to $100 overnight? I'll just buy at $100 to sell at $110. Buy and hold is a *horrible* strategy in a bear market.

ama

member

Activity: 112

Merit: 10

Quote from: Cluster2k on October 12, 2011, 05:29:41 AM

Bitcoin could well shoot up 100% within a month. But will it do so from $4 or $2? That's anyone's guess.

Wait and see when the signals of trend up appear. The first coin should be made by others. Wink

Cluster2k

legendary

Activity: 1692

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The trend is your friend.

Piling into bitcoins and buying on the way up to $30 was an easy way to make money. Just don't be the greatest fool holding the bag. That's the name of the game: dump your hot commodity or stock before everyone else wakes up and dumps their's.

Bitcoin could well shoot up 100% within a month. But will it do so from $4 or $2? That's anyone's guess.

ama

member

Activity: 112

Merit: 10

Quote from: EuSouBitcoin on September 06, 2011, 12:07:54 PM

Do you prefer to buy on the way up or the way down? I prefer to buy on the way up. Since BTC has been in an intermediate down trend, I haven't been buying. If the trend can stabilize and turn back up, then I'll be a buyer.

You should bye when the trend is up (to cash out profit later, selling when it's higher) and sell when the trend is down (to make your profit or minimize your loses), don't you?

S3052

legendary

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or.. you miss the train and need to pay a much higher price to catch up...

EuSouBitcoin

sr. member

Activity: 490

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Trend is still down. Don't buy now unless you like getting run over by a freight train.

EuSouBitcoin

sr. member

Activity: 490

Merit: 251

If you buy on the way down you would have bought
100 BTC at $9
100 BTC at $8 and
100 BTC at $7
At that point the price of BTC is $7, you are long 300 BTC with an average cost basis of $8 and an unrealized loss of $1 per BTC or $300 total.

If you buy on the way up, you'd buy
100 BTC at $5
100 BTC at $6 and
100 BTC at $7
At that point the price of BTC is $7, you are long 300 BTC with an average cost basis of $6 and an unrealized gain of $1 per BTC or $300 total.

If you don't know where the price is going, I include myself in this category, then it's better to be a trend follower and wait for an uptrend to buy. That way you'll have the smallest position when the price is moving against you and the largest position when it has recently moved in your favor. This is basic trend following, anti-martingale strategy.

wobber

legendary

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Can you please explain with more details for a n00b?

EuSouBitcoin

sr. member

Activity: 490

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Buying several times on the way up give you an unrealized gain. Buying several times on the way down gives you an unrealized loss. I prefer unrealized gains to unrealized losses. That's why I buy on the way up and not on the way down.

EuSouBitcoin

sr. member

Activity: 490

Merit: 251

Do you prefer to buy on the way up or the way down? I prefer to buy on the way up. Since BTC has been in an intermediate down trend, I haven't been buying. If the trend can stabilize and turn back up, then I'll be a buyer.

Topic: Buy on the Way Up or on the Way Down - page 2. (Read 3394 times)