grrr yeah I got wiped out again... I think it is bitcoinica's forced liquidations creating extremes

People with a short or long position go nuts when there is no volume. Sometimes if its moving in one direction then it stagnates for a long time it moves in the opposite direction once it does start to move again though. To me it seems like it is *slowly* going up. Sometimes slowly up going accelerates and turns into a rally.

I've been watching the price since Wednesday and its barely moved. Could we be about to go through a uber-boring period where there a more coins being mined so inflation is increasing but the actual price remains solid?

I guess we may find out by the time this weekend is up.

OK I didn't see that post. Thank you

Thank you for trying to contact them. I'm curious as to how you worded your e-mail. We assume you decided not to use the word "crap" in your communication.

best regards,

Chris

I also noticed this thread about a peer 2 peer share exchange.

https://bitcointalk.org/index.php?topic=54033


Perhaps... also it could be for p2p classifieds which are of course different to auctions. Classifieds open up to many possibilities such as freelancing and help wanted e.g. people willing to work for coins.

I haven't tried the software but at the moment there is a lot of trading on mtgox and other exchanges where the exchange takes a slice in the form of a "trade commission". Ideally these should be replaced with transaction fees in the p2p exchange model and these fees are paid out to miners. This will make mining for transactions fees very profitable indeed. Are there any plans to integrate a p2p exchange into the existing system in such a way that miners get the transaction fees for these trades?

I would also like to see it as a kind of p2p ebay where anything can be traded e.g. food, clothing, commodities and so on. It could also be like a p2p stock exchange where you could buy shares in companies.

A lot of transactions fees are lost to exchanges in the form of "trade commissions". So although Magical Tux is making a nice profit a lot of miners are struggling. At the same time traders are being gouged more in fees using conventional services such as bank transfers, credit card fees, paypal fees and so on then they otherwise would in their lifetime. Ironic that the very same bitcoin that is supposed to be saving people fees is actually increasing them. If you want to develop bitcoin further look at applications to return more transaction fees to miners and give less to banks and middle men.

But are the buy and sell @ market rates also far apart when there is volatility?

I love it when the spread is really close. You can buy and only be in the red a few cents for a short time if you bought the right way. I think I remember even once trading and being instantly in green.

Well right now if I bought at market at mtgox I'd be buying at: 2.98991 and on bitcoinica: 3.0072

Maybe that's the thing about bitcoinica. Normally when you trade at a profit you just about never buy at market. Always put in extreme buy and sell orders and hope they get filled.
Bitcoinica seems to be @ market + the spread. The lag is probably the lag in the orderbook.

So my question would be does bitcoinica actually place orders on mtgox or just fill them?

So do we think the market has hit the bottom yet or we've still got some major sells coming up?

My prediction was a return to dollar parity and we got $1.98 which was close but no cigar.

I almost made $4 but the market moved against me when I went to liquidate. But I do remember I could have made more if I had of bought around $2.60

One thing in bitcoinica's favour though is that there are no fees. I signed up with a CFD trader so I could make money shorting other tradables while bitcoin is flat and I did well today on a short position, however, I noticed that if I cash out I still lose on the entry and exit fee unless I'm willing to risk a larger amount on each trade.

*edit: Actually I did make about $8 which is pretty good for risking $50 but I am on the intro rate. Once I graduate to the full rate that profit would have been wiped twice over. That is why I will look for long term slopes to ride.

Very well reasoned argument. It does look like you have attempted to provide unbiased peer review. Thank you. It would be interesting to e-mails these concerns to the author(s) of the paper.

You should also be looking for studies in fluorosilicic acid which is a very dangerous waste product of the rock phosphate fertiliser industry and in addition to sodium fluoride is usually added to public drinking water. Whatever your views are on fluorides potential benefits for preventing tooth decay mass medication against the consent of the individual is contrary to the Nuremberg Code as well as libertarian principles which we should know about being pro non-state controlled currencies.

I definitely agree that the spreads should be improved. The lag is a very interesting point. E.g. when prices fall or rise the spread is way out in Bitcoinicas favor and takes a while for it to catch up. Sometimes the market may have swung back before the spread went in your favour again or it was only in your favor for a brief few seconds.


Maybe someone could make a alternate bucketshop? Maybe test it out on LTC first. Would be interesting if we could get better spreads with LTC even with much less volume.

Thank you this is good advice but I am more likely to do this on a spreadsheet because my handwriting is very difficult to read.


I'll try to give an example. On the bus I looked at my short position on my android phone and it was still going up. For some reason I got angry. I knew that when I was angry I would make a bad decision and I would lose money. I was so angry that I didn't care and I just liquidated my position. I knew that if I waited for Sunday i'd at least break even but I didn't listen to my common sense. So maybe I have confused instinct with common sense. As it turned out if I had of held the position i'd be about $100 ahead!

I guess now I have a well defined goal: e.g. make back what I lost without adding more to my bitcoinica account.

and I know the consequence of letting my anger control my actions so hopefully I have a slightly more mature head on my shoulders now.

Actually, i'd like some advice on how I can turn my situation around to one where I am making money.

I think i'd just be better off if I:

* Follow my own instincts especially those in regards to well known bitcoin price cycles
* Don't hesitate
* Don't rush in either!
* Don't get emotional, or if I do get emotional control my emotions and don't make things worse
* Place orders rather than "quick picks"
* Get out of the house and socialise a bit more
* Get enough sleep

No of course i'm not the manipulator but other people that did the same or similar stuff as me probably made the market so volatile.

Yeah guys its probably my fault... really bad timing on bitcoinica and using the full 10:1 margin.

Shorted when I should have longed, liquated when I should have just held in there and finally longed when I should have shorted and went to sleep. Now I'm poorer and thinking about that Albert Einstein quote:

"No problem can be solved from the same level of consciousness that created it"


I can put it down to lack of sleep largely I guess. Too much isolation and not getting out enough. The annoying thing is the whole time my instincts were right but I didn't really follow them. My emotion made me make bad decisions. I need to learn more discipline and self control.

Now I don't know if I should quit using bitcoinica or should learn from my mistakes and keep using it. I've got a small long position now with what's left of my margin.