Topic: Short now = make lots of money? - page 3. (Read 824 times)

Shorting is not as easy as you think. Some people I knew lost lots of money because they bought BTC at like $16K. When it hit $6K in June 2018 they became bears and started shorting. However they basically made no money because they kept shorting, covering at a loss thinking the bear market was done and then when it went down again, they reshorted again at $6K and again took a loss when it looked like it was going to go up.

Then in Sept/Oct they gave up thinking it would trade sideways forever or go up and then November came which would of been the perfect time to short and they weren't in a position.

In general its difficult making money in bear markets or sideway markets. Whether its stock or Crypto. The bull markets are usually very easy to trade.

Thats right, you can make big profits in the short term, you can also lose big amount in the short term, everything depends on you in managing it. first your knowledge and skills greatly influence the results, the greater your knowledge, the greater the chance to win in short term or long term

Many people use short term period strategy to keep their asset has income and I think that is good idea. Long term period strategy can make you lost patience and asset in big value but short term term will give you result and experience in 1 - 2 days. Bitcoin looks bad but can survive but I see eth and xrp more promised than btc, they have more significant price action that can be use to make money. See their history and trends, never forget your stop loss and follow your own rules.

Why do we need minimum 1BTC for shorting ? Are you talking about leveraged trading ? I never suggest such a thing because it is purely gambling as you will be thrown out of trading when the direction of market will be going against you even just for a short duration too. Most probably market is at it bottom right now, hence sorting now is not at all recommended unless otherwise bitcoin will be breaking and holding below $3000 levels.

When there is no sign of reversal then shorting is a good way to make money ? I did not get your point. Market had already sunk a lot hence it may go sinking further or will make a reversal. Need to wait for some more time to get clear idea on where market is heading.

Learning to keep your cool at any point is one good thing to learn and master, don't panic sell when the price drops abd don't be overexcited when the price increases. Shorting is not an easy thing, it can get real bad and you might lose a great part of initial capital. Shorting at this point is not really advisable, the market is just sinking and no good signs of a reversal.

That is a very good idea. Long-term investment at the moment will be a risky decision and we may suffer losses.
I think our market needs more than 4 years to recover and grow again. Buying BTC now and holding in the long term will be a big disadvantage because we will waste a lot of time.
Currently our market still has instability and we should make use of it to trade and make a lot of money.

Looking at current TA and FA's like Bakkt and other news its not the time to setup a huge short. If this question was in June/July 2018 then definitely it was a YES.

Fundamental Analysis:
2019 has not started with a not-so-bad note as the master is slowly taking off. A couple of days back in a Forbes article by Charles Bovaird, it was mentioned that Bitcoin could experience further gains once it reaches above $4,000, according to sentiment data and analysis.  Even NASDAQ, the second largest stock exchange in the world has also vowed to launch Bitcoin futures in the first half of 2019. It is going to start on a good note as the digital assets platform, Bakkt is going to get introduced. Bakkt has already raised $182.5 million and is supported by 12 partners including Pantera Capital, Boston Consulting Group, Galaxy Digital and many more. The owners of Galaxy Digital, the Winklevoss brothers recently stated in the Aske Me Anything(AMA) session that Bitcoin is the most likely winner in the long term.

Read more: https://coinswitch.co/news/bitcoin-price-prediction-2019-btc-price-to-touch-23500-in-2019

Technical Analysis:

Refer Charts: https://www.tradingview.com/chart/XBTUSD/zcWogG4z-BITCOIN-LONG-TERM-VIEW/
Scenario 1: Bullish (Uptrend)

If BTC close above $3650 Daily and the weekly frame shows a reversal pattern (Green Engulfing candle) we might enter at these levels ($3600) with a target around $4000+ which eventually might restest Resistance Zone ($4400-$5400) in the coming weeks.

Scenario 2: Bearish (Downtrend)

If BTC couldn’t break the previous support ($3600) turned resistance in the coming weeks then there are two Bounce(rebound) zone for Bullish reversal ranging from $1800-$2400 and $896-$1200 for coming weeks and month.

Now, we have reached the last segment of our analysis where we will mention the news and event analysis

Institutional bodies are getting interested in cryptocurrencies. One such example is the U.S. state of Ohio accepting tax payments. Merchants like Overstock, eGifter, Expedia, Shopify accept Bitcoins as payments and several people are testifying on social media how they purchased goods and services with cryptocurrencies such as BTC , ETH, and BNB.
The supply of Bitcoin is finite and limited to 21 Million hence the demand is not going down. Second, that the number of Bitcoins generated per block is set to decrease by 50% every 210,000 blocks. For example, if today each miner receives 12.5 Bitcoins for solving (mining) a block, after the next halving event they will receive only 6.25 BTC and so forth.
2018 was filled with rumors of institutional investors buying into cryptocurrencies, especially Bitcoin . Several times, the Bitcoin ETF has been rejected in 2018. But recently an SEC commissioner has started a Bitcoin ETF is definitely possible. In 2019, NASDAQ is going to work with the US Commodity Futures Trading Commission (CFTC) to launch Bitcoin futures in the first quarter of 2019.
Conclusion

While bull and bear markets are nothing new in the financial world and Bitcoin has been through the bear cycle before and recovered well from it with given time. Bitcoin is here to stay, it’s worth exploring the drops in value and equally fast recovery the currency has experienced. History shows that the top cryptocurrency has sustained much more rapid losses during a shorter period of time over the course of the past several years, and has not discouraged long-term investors.

Do not conclude for a short or long just because the market is bearish since past few months. Read, understand, ask, try Test-net and other tools. Have your own strategy, paper trade on using your strategy. Work on your strategy and improve it. At the end of the its your hard earning so please be more specific before taking any action.

Short trade now good profitable if you have minimum 1 BTC plus. Without good investment you will not get enough/good profit. I think at this time 1 BTC is good for getting profitable money by short trading. Trading is powerful if had proper knowledge.

Yeah, whether you trade short or long you are still vulnerable and in trading losing is normal. Of course its good for us to be ready for the possibility of losing because you took the risk of trading. Your trading skills is also important, you can make a lot of profit in short trade if you have it.

I haven't heard of that yet, but it's horrible for sure. Average joes aren't capable of making investment decisions, and we are being presented the evidence of that in the most brutal way.

These are usually the people who look up to experts a lot, and back in 2017 when everything kept going up these experts were right all the time, which for average joes might have been the reason to trust their opinions.

At least, those who got burned will likely not make the same mistake again. If they play it well, the next bull run will be where they sell into rathet than buy into. We all started as a noob and improve as time goes by.

Aside from a mathematical analysis there's also common sense. There are questions you can ask yourself before investing like:
-is it performing its role, is it working?
-does it have fundamental flaws?
-what is public interest, do people like the idea?
-did it change for better or for worse in the last year?

Now, take 2 periods in time, one in the very early bull market and one now, in the end of the bear market, and decide if it was better or worse back then. At the time when people were paying more for it than they are paying now. Like when Bitcoin was trading for 4k USD in 2017. Was Bitcoin faster, more popular back then, or maybe it is faster and more popular now?

In my opinion in August 2017 it was much slower, less popular, had much more issues and bugs that were patched in a later date, and there was much less exchanges, ATMs and so on, but people were willing to pay 4k USD for it. If the value at that point was objectively calculated, and it might have been because we haven't been in a hype phase yet, it should be worth more today. If an 85% discount isn't enough to make people think of buying something, nothing is.

One funny thing here is that it is full of uncertainties, and therefore you know not the next line of market action. What do you do? Always go in with a plan whether shorting for long or shorting for immediate gains. But I beg to differ that BTC is not overbought, it is oversold instead.

If that can easily be seen then we may be rich now. Or I wont be sharing it first and will get myself some loads of cash before I tell it to anyone.

It aint that easy to foretell the future so you will just need to guess and risk. You could short it anytime you want but you wont know what tomorrow will be. Maybe you can make profit out of it or maybe not. Asking too much will not help. At the end of the day, it will still be your own decision.

Who ever decided to short yesterday has been liquidated. Price went up, like always shorter`s stayed short this time, and people can continue to read all kind of things and try all kind of strategies but in the end its just a market that is going up and down. To trade you need to have a back up, and if you have a back up for your back up you will be more comfortable.
Assets are always going up and down, will you earn or lose from your trades depends of your knowledge about the market itself, about the players, about the potential future, and many other things, think it in a way like this the more you know about it, it will be easier for you to handle with it, what ever that is!

"Overbought and "oversold" are words used without meaning unless they are accompanied by relevant analysis, either technical or fundamental.
Just because an instrument or asset has fallen (even a long way) in value doesn't make it oversold, or vice versa.
Traditional fundamental analysis was developed for financial instruments like stocks and shares and relies largely on comparative P/E ratios to provide a quantitative overview. Some people, me included, find it difficult to apply fundamental analysis to crypto.
Technical definitions of these terms are mathematically based and involve the use of tools such as RSI with confirmation from other indicators.
Here's a couple of 101 primers
https://www.investopedia.com/terms/o/overbought.asp
https://www.investopedia.com/terms/f/fundamentalanalysis.asp

Currently, crypto market acting in sideways nowadays short trade profitable if you find out overbought and oversold positions in short timeframe. keep your eyes on the market when you enter a trade.

Doing short term on this condition of the market isn't safe especially if you're a beginner because growth rate of market as of now is so volatile and very  risky as well  because of being unpredictable . If you want to paly right now make sure you have specific strategy and enough knowledge to prevent regrets!

That's was a big mistake, he got FOMO at best, I think he likes to follow Changpeng Zhao, CEO of business who sold his house and get successful in crypto. It could actually be possible, however is timing is very wrong, Changpeng Zhao bought bitcoin during the early stage when he sees the potential, but the man in your example bought during the peak, I wonder how he live his life now, I hope he is okay.

There was a one man on reddit (possibly you know too) who put his house in bank and bought bitcoins when price was almost 20K, imagine what he did, how much he risked and that was due to no knowledge.
Those proposals from "experts" is very funny too, if we follow them, then we will lose all of our money. Persons who talk a lot of bullshit are called experts nowdays.

The major take on this is that crypto trading is full of surprises and your plans go to shit in seconds

first always be ready to risk what you can lose!!

yes you can make good money also you can lose lots of money