Please read if your a Bitcoin Trader

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  • Hello all,

    I have been using BTC for a while now to buy stuff only, and the prices boomed like less than 1.5 weeks ago. I bought a few BTC to sit on and my luck came in which hit 18k like a couple of days ago (I use Coinbase pro). However, I don’t know ANYTHING about stocks/crypto. I know the basics but I literally got 100% lucky on this one. but does anyone know how to even “predict” the market for this? Is there something you guys use or is it just gamble and watch the news on BTC?

    I have seen people day trade this and make a good chunk of money a day. I want to do the same because my classes are all online, and I have the urge to make money rather than be in school for another 5 years lol.

  • BTC is running and will likely hit it’s previous all time high of $19,700… From there it will probably flirt with $20k, and stay in that range for a bit. I expect a selloff though, as many people will think that this is the top of the market and try to take profit from there.

    You can swing trade BTC, but you’ll need to wait for it to drop back down before doing so.

  • @trexdude

    I’ve been hearing a lot that it’s gonna hit 20k, but do people just buy and sell based on pure luck/gamble, or do they look at a chart with an algorithm? I wanna know as it’s gonna do basically without just guessing as I did with my first purchase if that makes sense. In other words, I just don’t know anything about BTC but is there something people use to decide when to buy or sell?

  • If there was a way to know, everyone would be rich. It’s like just any other stock, it’s based on the demand, good/bad news, FOMO and the insanity of traders. If it’s anything like before, hitting the all time high is gonna make people panic sell and then crash back down, but it could just as well break the 20k plateau and hit 30k. Nobody knows for sure.

  • @PersianBody19 stock trader here, no way to predict long term and very difficult to predict short term. I don’t mess with BTC outside of using it to buy stuff but trading it is identical to any other trading. It’s had a run the past 2 weeks so likely it’ll slow down for a few days maybe for a few weeks before continuing on… or just sell off. BTC is the most volatile trading you can do. With every thing going on with politics, federal reserve, covid, etc shit like BTC is completely unpredictable and anyone one who says otherwise is merely making a guess/bet. Every guess/bet is going to be 50/50 odds. Be careful.

    Edit: I just pulled up the chart on BTC which I haven’t done in months and this shit is bonkers. I saw my small amount in Coinbase going up but it’s such a small amount I didn’t realize how much BTC was going up. The odds on this bet are to the downside at least for a week or 2. Notice I did say odds though. It could still go straight up to 30,000. Something like this you need to ask yourself why is it doing this? Short squeeze? Think what Tesla’s stock did earlier this year. Policy change? (I havv be e no fucking clue) Big players(think banks, funds, etc) lift they’re sell orders to spike the price or they’ve already sold out and this vertical shot up is all the dummies (us) buying because fomo? A lot of questions with no real answers. Trading is all risk:reward thinking. Right now I see more risk than reward in the short term. Not a chance in hell I buy into something like that. If you want to but wait for a pullback. Say around 16000 or something. But even that may be to shallow of a pullback for how high it is. Remember people take profits at some point with takes selling to do. If there’s thousands of people trying to sell to take profit and no one willing to buy at those levels(prices) then price drops until they find buyers. Same thing happens in the opposite direction.

  • @allnatural

    Damn bro, I really appreciate your reply. You really broke it down and it makes sense that this has more risk than reward in the short term. I bought 4 BTC in at around 10.8k I will most likely pull out soon because of the lack of knowledge I have on stocks in general. I don’t want to get greedy and lose everything but again who knows because it could hit 30k like overnight lol.

  • @PersianBody19 np.

    just ask yourself this, will you be more regretful to take your profits now and watch BTC go up 5k next week OR be more regretful that you held on and BTC drops by 5k next week. It’s very easy to think, “what if I hold on and it goes up another 5k!?” but it’s that line of thinking that gets people in trouble. You have to think of it from a pessimistic perspective. You could hold on and make a shit ton more money, or you could lose your current profits(and possibly more). This is the psychological warfare of trading. Good luck mate.

  • @allnatural

    That is completely true and is what I have been thinking these past few days loll. What’s your opinion on what’s gonna happen to BTC so far?

  • @PersianBody19 highly recommend 1) cashing out at least your initial investment amount to have that peace of mind 2) do not FOMO into altcoins, it will become tempting thinking you are getting into the next big thing. this happened to a lot of us in late 2017 and we got burned.

    you can make pretty money easy daytrading crypto but you have to get an understanding on the trading bots and algorithms

  • @PersianBody19 well, I had a couple hundred left over in Coinbase a couple weeks ago and with this run up it’s close to $300. I plan on taking it all out tomorrow morning. I’ll take 50% profit anyday. No matter what I think will happen I know for a fact I’m up good. The dollar amount isn’t anything to stroke my ego but the % is enough for me to take my money and be happy whether BTC keeps going up or not. Think of it like this, most professional traders risk 1% of their account to make 2%. If I exit trades with 2% return in a few days it was a success. So, close to 50% in a couple weeks is a no brainer to get out now. For me at least. I’m not telling you what to do, it’s your choice, this is just what I’m doing and why.

  • @tonyperkis @allnatural

    I can understand both of yall’s point of view on this and I agree that cashing out while I’m up % is the best option lol. I have been hearing all around about trading bots but they all seem odd to me because if everyone used them they would be rich, Right? or am I misunderstanding the concept of this? I am interested in day trading “pocket change” amount of BTC but I’m just gonna pull out for now until I fully understand what I am getting into.

  • @PersianBody19 the trading bots are designed by humans and are only effective in taking human emotions out of trading. They program their strategies, all strategies are just that, just theories by humans. At the end of the day no one knows how the markets will move. So you program your strategy and the bots will exit trade with either the max loss in your strategy or profit target hit. This way if someone has hit their profit target the bots will exit per strategy and the emotions like fomo, regret, euphoria, etc do not play a role in decisions. Vice versus, many people lose a lot of money by not exiting with a small loss because they have HOPE the trade will turn around for them. There’s no hope in trading.

  • @allnatural I appreciate the breakdown of the bot trading which makes sense, Thanks for the help man!

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