Topic: This is where money is made (Read 3126 times)

Did you actually come up with that by yourself or did someone help you out?

Can you even withdraw anything from btcchina after their new aml/kyc rules?

Best of luck with the registration

Fair enough. We will know in the next 5 years one way or the other. Maybe sooner.

Honestly, while there are a lot of things I like about BTC, I have serious doubts about its long term longevity.  I would have a hard time putting it on the same level as my IRA or my wifes 401k and CAP. I am content to view it as a neat cryptography project and unique speculation tool.  I know this is an unpopular point of veiw here, but after @ two years with BTC, my mind hasnt been changed.

Yep.

But there are hundreds of brilliant entreprenuers that are putting hundreds of millions of dollars and their full time expertise and vision into creating an eco-system built on the bitcoin protocol. So, your "don't listen to the echo chamber" advice is solid. However, I might advise you to not always think of Bitcoin as a "trade."  Make yourself an expert on its utility. You might want to leverage yourself as a long term investor.

Sort of. You are taking a longer veiw on the market than I am comfortable making. I typically play the market shorter term, so the way I approach it will vary highly depending on what the market is doing at that moment, and how confidant I am that BTC will hit my target prices.

For example, Yesterday I made several trades, and most of the sales were within 30 dollars or so of my buy price.  I kept it tight because I wasnt overly confident that the price would stay within any given trading range and wanted to be in and out of trades as quickly as possible. I also wasnt sure how low the price would end up, so I chose to stay in USD as much as possible (allowing me to preserve realized gains and allowing me to pick up more BTC at the points I bought in).

However, today I stayed out of the market completely as I never felt comfortable in which way the market would go. Instead of trading when I was unsure, I put in a low buy order at a price I could live with if it got triggered (in the 400s) but overall stayed in USD.  If the price starts to take off before I can get in, thats fine as well...I'm very OK with missing potential profit if it means protecting the profit I have already made.  For now, I'll wait until my low buy order get triggered (which I think is unlikely), or I find an entry point into the market that I am comfortable with.




I like to have my trades resolved by the end of the day, but whether those settled trades are denominated in USD or BTC depends on the market. During a down market I like to be in USD (to preserve profit), and in an up market I like to be in BTC...that said, when I am in BTC, I generally have price alerts set on my phone so I can take action and bail out into USD if I need to.




I'll be one of the few people on this forum that will be honest with you about this point....the price wont necessarily go up in the long term.  The fact is this whole thing could come crashing down tomorrow.   Maybe we will go steadily up, or maybe we will continue the bubble and bust cycle with the price fluctuating up and down wildly, perhaps the price stabilizes and we trade sideways forever, or maybe a flaw is discovered in the system (or maybe people lose interest or whatever) and the price crashes down to singles (or lower) and never reaches old heights.  The fact is, we dont know what the future holds for bitcoin, and there is certainly no guarantee on future price.

Please dont listen to the hype from the echo chamber.  Go into trading with open eyes and realistic expectations, or you may get burned.

So basically you do the same thing but narrow it down further to $50-100 above your buy in price?  Do you always sell at the end of the day?

Yeah I stay calm by using portions at a time.  And this is not the majority of holdings.  So the long periods of dullness in between potential mistakes don't bother me.  We know long-term it is up anyway.  I'll never sell anything until it makes it back.

homework for the night:

put all your fiat in btc on next best exchange,
send to btcchina, sell,
wait fot btcc going under gox,
buy btc, send to usd exchange

You just schooled every noob to the basics of trading.(Self included). I will now apply this in my btc management strategies from here on out thank you.
I'm a semi-noob, but by the grace of God I've sidestepped a lot of "could be" tragedies. Up until now.Got swindled for .006 btc BIG DEAL!

That seems to be a reasonable enough strategy.  I think we are near the bottom of this crash, but having your second buy order triggered at $500 is a definite possibility (I actually have one set a little lower).  Your sell target of $900 is high, but not unreasonable...I think it is reasonable to think we will see 900 again within a few months.  Keeping cash on hand is smart, and will allow you to buy back in if the price tanks again.  That said, know how much loss you are comfortable taking and set an exit strategy now to preserve profit/cut losses if neccessary.

Personally, I prefer to daytrade because I like having all of my trades resolved by the end of the night.  Swingtrading (which is what you are doing; trading over longer periods of time) can definitely be an effective way to trade.  Just make sure not to risk more than you can afford to lose...the market can stay irrational longer than you can stay solvent, and it only takes a second for a trade to go wrong.

It's pretty obvious why most of us are here...for bitcoin. Otherwise this would be called usdtalk.org

Basically as this crashed...I jumped in using 25% from cash on hand at 733.  I put in a limit sell order for 900 on it.

I'll use another 25% of cash on hand to jump in @ 500.  Probably gonna put a limit sell on that one at 750.

Still 50% liquid at that point.  Your thoughts evolve on tightening that strategy?  I think I'm playing it fairly safe as a test.

This is fun.  Does a bitstamp bot exist?

Entry point and exit points are going to vary from trade to trade, obviously.... But here is the general idea.

Once you've figured out the trading range for whatever period of time you are looking at (ie: if the price is steadily trading within 700-780, that is your trading range) you are ready to plan your trade. Pick an entry point near the bottom of your trading range, let's say 730 for the example trading range we've established. (I typically stay above the bottom number if my trading range to allow a cushion in case the price range starts to shift) You then need to establish an exit point...for our price range, I may select 750-760, again allowing a cushion at the top of the trading range.  The trick is finding entry and exit points well within the established trading range to allow you room to breath in case the price starts to move outside of it. Also, it's preferable if the entrance and exit prices are close enough together to allow you to complete trades quickly (while still allowing a buffer to profit after fees). The last thing I do before entering the trade is figure out bailout points to preserve profit or cut losses in case the trade goes belly up. These bailout points are going to vary depending on where I am standing on profit for the day, the general state of the market, and how much risk I feel like taking that day.

Wash. Rinse. Repeat.

i actually agree with evolve, real money in the sense the big wall street guys became big and rich by timing their buy and sell strategies correctly (they lose money sometimes but recover on future trades), however it does require a fair amount of experience, guts and mathematical intelligence. Also it means getting richer earlier and enjoying an upgraded life than waiting in the future.

For people who can't be bothered buy and hold works, as long as you don't get in late in a long term bull market. for example if u got into gold at $1900, that was after a 8 year bull run of course buy and hold doesn't work because u came in damn late after so many ups and downs from $200. Buy hold works for new things like bitcoin, litecoin, and new stocks for innovative companies. Bitcoin is still in early stages has a few years to go before stabilizing so buying and holding will guarantee you good returns in the minimum of 200%-300%, sure you won't make as much as the pro-traders but where else can u make this much returns on your investment.

I agree but saying "find an exit point", "find an entry point", "sell high", "buy low" etc isn't a strategy.
If you have something about how you 'll determine these points then i'll be glad to hear it.

Obviously you don't know a single thing about daytrading or swingtrading.

Just because you cant wrap your mind around how to trade successfully doesn't mean others cant.  

Ok i thought you were talking about a strategy to earn money. Obviously you talk about the "i have no idea what i 'm doing" strategy. Gl.

Money from daytrading comes from volatility, so this is exactly where money is made.  

A hypothetical persons unrealized gains from buying and holding are pretty irrelevant in a daytrading thread, IMO.  

My point is this is not where the money is made, at least not the best money (so far in this market).  Someone buying in two weeks ago would have gotten a better price.  Sure an experienced trader can pick up a few bucks at times like this but this thread would have been much more relevant two months ago when the price was 140.