Few Questions and Discussions relating to Trading

noel57

sr. member

Activity: 392

Merit: 250

Quote from: ShetKid on May 29, 2015, 08:25:32 AM

I opened this thread for questions someone might have with trading. I am interested in getting into bitcoin trading . But I have questions regarding a few terms.

Can someone explain how does shorting work ? I understand it is selling the coin or stock at current price when you expect price to fall. If current price is 10$ then you sell and buy back after it falls to say 7$. Then how do you profit out of it ? It just seems to be minimizing losses .

Shorting as you are already aware means sell, you sell when you are anticipating that the price will fall and you buy back when you are convinced that the price is going to rise, it a form of day trading techniques.

ShetKid

sr. member

Activity: 392

Merit: 250

Quote from: Greentree on June 04, 2015, 02:41:31 AM

We can buy bitcoin option, call or put. We can easily go short or long for bitcoin.

Yes, but how do we do that and what does it mean to go short in bitcoin as unlike a stock its not possible to sell something we don't own.

Quote from: TraderCal11 on June 05, 2015, 09:30:24 PM

My trading strategy really hasn't depended on the price of bitcoin on the large exchanges. If you are able to assemble several different accounts on different online wallets, this can be very profitable. A lot of ads advertise to buy BTC at 15-20% higher than market. From there, it is only a matter of choosing your transactions very carefully to avoid fraud.

Hope this helped.

regards

That is not relevant to the question .

TraderCal11

hero member

Activity: 574

Merit: 500

Brickblock.io - Future of Stock Trading

My trading strategy really hasn't depended on the price of bitcoin on the large exchanges. If you are able to assemble several different accounts on different online wallets, this can be very profitable. A lot of ads advertise to buy BTC at 15-20% higher than market. From there, it is only a matter of choosing your transactions very carefully to avoid fraud.

Hope this helped.

regards

XinXan

hero member

Activity: 1064

Merit: 505

Quote from: ShetKid on May 29, 2015, 08:25:32 AM

I opened this thread for questions someone might have with trading. I am interested in getting into bitcoin trading . But I have questions regarding a few terms.

Can someone explain how does shorting work ? I understand it is selling the coin or stock at current price when you expect price to fall. If current price is 10$ then you sell and buy back after it falls to say 7$. Then how do you profit out of it ? It just seems to be minimizing losses .

Its not exactly like that, you are not really selling any coins, you are selling something that you dont own, im not good at explaning this but you can check it here. http://en.wikipedia.org/wiki/Short_%28finance%29

Im not really sure how does that apply to bitcoins tho.

Greentree

full member

Activity: 132

Merit: 100

Quote from: ShetKid on May 29, 2015, 04:14:25 PM

Quote from: Amph on May 29, 2015, 11:14:00 AM

the shorter, plays his game on a downtrend, as long as it keep falling he can gain profit, even if he sold at a lowest price than the last price at which he bought back, but he need then to buy back at a even lower price, it's better to buy back at , at least at the price of your last buy, otherwise you are only increasing the risk of losing

at some point he must go out of the market, if the downtrend is too strong, then the problem is that he can't enter anymore without losing money...

That doesn't make much sense . I believe what you are talking about is loss minimizing which is done when you know the prices of bitcoin or a stock is about to go down. In stocks shorting comes into play when typically a broker is involved, but how does it come into play with something like Bitcoin or Altcoin Trading ?

We can buy bitcoin option, call or put. We can easily go short or long for bitcoin.

ShetKid

sr. member

Activity: 392

Merit: 250

Quote from: Amph on May 29, 2015, 11:14:00 AM

the shorter, plays his game on a downtrend, as long as it keep falling he can gain profit, even if he sold at a lowest price than the last price at which he bought back, but he need then to buy back at a even lower price, it's better to buy back at , at least at the price of your last buy, otherwise you are only increasing the risk of losing

at some point he must go out of the market, if the downtrend is too strong, then the problem is that he can't enter anymore without losing money...

That doesn't make much sense . I believe what you are talking about is loss minimizing which is done when you know the prices of bitcoin or a stock is about to go down. In stocks shorting comes into play when typically a broker is involved, but how does it come into play with something like Bitcoin or Altcoin Trading ?

Amph

legendary

Activity: 3248

Merit: 1070

the shorter, plays his game on a downtrend, as long as it keep falling he can gain profit, even if he sold at a lowest price than the last price at which he bought back, but he need then to buy back at a even lower price, it's better to buy back at , at least at the price of your last buy, otherwise you are only increasing the risk of losing

at some point he must go out of the market, if the downtrend is too strong, then the problem is that he can't enter anymore without losing money...

ShetKid

sr. member

Activity: 392

Merit: 250

I opened this thread for questions someone might have with trading. I am interested in getting into bitcoin trading . But I have questions regarding a few terms.

Can someone explain how does shorting work ? I understand it is selling the coin or stock at current price when you expect price to fall. If current price is 10$ then you sell and buy back after it falls to say 7$. Then how do you profit out of it ? It just seems to be minimizing losses .

Topic: Few Questions and Discussions relating to Trading (Read 950 times)