Bitcoin trading strategy

[Amph]

as you said there any real strategy behind trading(this is waht i think at least, i could be wrong i'm not a pro trader), is just a opinable view based on the various chart, or on the whole story of that asset/others assets, some times is just a matter of insight, other is just pure luck...

many strategies only work because they are reinforced by the fact, that many adopt it, not because they are exactly good, if everyone agree on doing the same thing, it will be more easy to obtain the hoped goal

this is why you see group of whales, moving, besides the manipulation, they can reduce the luck involved when they work on the same strategy, instead of working alone, with the possibility of following different paths

[ilyasilyaso]

I'm starting trading with bitcoins a couple of month already i buy low and sell high but really i wanna know if there are any strategies or equations to follow to know which time is perfect to buy or sell  or which is not and so on ......

I think you will only know that if you have been experienced it. Experienced is the best way to know or to learn how to know when you will buy or sell your coins.

If you juse depends on your own experience you will fall again and again. At least you must need someone to guide you in this bitcoin. This is not like books that can be learned in one or two days. This is your future here, if you lost now you will lost your future too. But if this good so your future is already in your hand

No i didn't failed when i tried again because i'm  avoiding the wrong things that i have done . After doing that my work or my strategies in trading are good and great. It helps me a lot

How lucky are you? Just in one try you can avoid all of that mistakes. I struggle hard from this bitcoin. At first to know bitcoin I always in losing, get some and lose it again and I keep making the same mistake but now after I learn bit by bit I guess now Im ok

I also tried so many times not only 1 try. Me too always losing but its ok. Having a wrong things is a normal people if we didn't failed we won't learned.

i think its come with times every day you will get more experiance  Whatever you lose is not a loss is another exeprience in your life

[deisik]

I also tried so many times not only 1 try. Me too always losing but its ok. Having a wrong things is a normal people if we didn't failed we won't learned.

i think its come with times every day you will get more experiance  Whatever you lose is not a loss is another exeprience in your life

That's cold comfort and a weak solace. There are a myriad ways to lose money and only a few to gain in trading. If your losses (as well as winnings) are due to randomness of the markets (which would be the majority of cases), you get nothing, just lose money...

But you may finally learn how to limit your losses next time

[Dotakels]

I'm starting trading with bitcoins a couple of month already i buy low and sell high but really i wanna know if there are any strategies or equations to follow to know which time is perfect to buy or sell  or which is not and so on ......

I think you will only know that if you have been experienced it. Experienced is the best way to know or to learn how to know when you will buy or sell your coins.

If you juse depends on your own experience you will fall again and again. At least you must need someone to guide you in this bitcoin. This is not like books that can be learned in one or two days. This is your future here, if you lost now you will lost your future too. But if this good so your future is already in your hand

No i didn't failed when i tried again because i'm  avoiding the wrong things that i have done . After doing that my work or my strategies in trading are good and great. It helps me a lot

How lucky are you? Just in one try you can avoid all of that mistakes. I struggle hard from this bitcoin. At first to know bitcoin I always in losing, get some and lose it again and I keep making the same mistake but now after I learn bit by bit I guess now Im ok

I also tried so many times not only 1 try. Me too always losing but its ok. Having a wrong things is a normal people if we didn't failed we won't learned.

i think its come with times every day you will get more experiance  Whatever you lose is not a loss is another exeprience in your life

Its only challenge in your life and if you lose hope and just give up you won't make your goal success.

[arallmuus]

Isn't trading usually based on following the trend and not on hype speculations?

True , but hype is one of the trigger that could either increase or decrease the price of it, following the hype and execute your order on the right time could be a blessing if you are a daily trader. Basically good news regarding BTC is a good hype for the price to increase , though we dont see any price moving up lately

Another example would be the news of KNCminer coins finally moving, I see the price deceasing after the news is leak . Hype ? Perhaps or people having the fear that the price might get alot more lower if they dump the coins

Also, lot of people try to influence the market with their suggestions, (in their favour) so you have to listen selectively, which can be hard.

Another way of hyping, this can be seen alot on btc-e trollbox. Basically that exchanger has a lot of trolls that will keep on typing buy or sell. They are doing it for their own purposes, getting someone that has no knowledge about whats going on to fullfill their order in the market

If there was a golden strategy, a lot of people would be rich by now. Fact is, strategies exist and work in certain situations. However there are a range of difficulties that separate theory and practice.

Indeed no, except the strategy of manipulating the market I guess. Strategies basically help you in reducing your chance to lose though

I have tried following a strategy out of the box, but it didn't work. Even though it should be working, based on maths etc. There is a lot of experimenting involved.

Dont, follow the trend unless you are whale that you cant got against the trend or either goes out of the box.

[Borisz]

Isn't trading usually based on following the trend and not on hype speculations?

True , but hype is one of the trigger that could either increase or decrease the price of it, following the hype and execute your order on the right time could be a blessing if you are a daily trader. Basically good news regarding BTC is a good hype for the price to increase , though we dont see any price moving up lately

Another example would be the news of KNCminer coins finally moving, I see the price deceasing after the news is leak . Hype ? Perhaps or people having the fear that the price might get alot more lower if they dump the coins

I think that it is often not the actual effect (what is being hyped) that causes a change in price, but the hype itself. Of course, certain effects can influence bitcoin in one way or the other, but this is not always the case. For example, people were expecting that wider scale adoption of bitcoins will lead to higher prices. Even though some larger companies do accept BTC as payment, we didn't see the price shoot up to crazy highs, it's just floating around sort of the same levels, +/- 50$.

Also, lot of people try to influence the market with their suggestions, (in their favour) so you have to listen selectively, which can be hard.

Another way of hyping, this can be seen alot on btc-e trollbox. Basically that exchanger has a lot of trolls that will keep on typing buy or sell. They are doing it for their own purposes, getting someone that has no knowledge about whats going on to fullfill their order in the market

Exactly what I meant. The BTC-e trollbox is the perfect example, although I have seen it elsewhere too. One wants to sell his coins, so of course everyone has to buy, because the price will skyrocket. And at this point I am not sure who could be trusted as a source of information. Principally, anyone could be giving you false advices intentionally so that he/she has monetary benefits.

I have tried following a strategy out of the box, but it didn't work. Even though it should be working, based on maths etc. There is a lot of experimenting involved.

Dont, follow the trend unless you are whale that you cant got against the trend or either goes out of the box.

When I say tried strategies, I mean running simulated trading, aka tests. But the fact is, based on maths and algorithms such as EMA and more advanced, one should be able to follow the trend and always make profit. In theory. However, in practice, selling is not instantaneous and the prices change so quickly that even a small delay can throw calculations of balance. Plus, of course, there is a trading fee as well that slashes the already small profits. More importantly, I could make a profit if I sold at e.g. 265$, however the sole fact that I am selling reduces the prices and my margin is gone.

[arallmuus]

Isn't trading usually based on following the trend and not on hype speculations?

True , but hype is one of the trigger that could either increase or decrease the price of it, following the hype and execute your order on the right time could be a blessing if you are a daily trader. Basically good news regarding BTC is a good hype for the price to increase , though we dont see any price moving up lately

Another example would be the news of KNCminer coins finally moving, I see the price deceasing after the news is leak . Hype ? Perhaps or people having the fear that the price might get alot more lower if they dump the coins

I think that it is often not the actual effect (what is being hyped) that causes a change in price, but the hype itself. Of course, certain effects can influence bitcoin in one way or the other, but this is not always the case. For example, people were expecting that wider scale adoption of bitcoins will lead to higher prices. Even though some larger companies do accept BTC as payment, we didn't see the price shoot up to crazy highs, it's just floating around sort of the same levels, +/- 50$.

When the news of Microsoft accepts BTC was released, I remembered the price shoot directly like +20$ or so and then goes back after just a few hours because people realized that they are accepting it not for their major product .
For now the price is being controlled by whale / group of whale, that is a why a good news regarding BTC isnt helping to move the price at all

I reposted this chart from user Benjig from another thread, basically this is a good chart if you want to see if a news move the price

Also, lot of people try to influence the market with their suggestions, (in their favour) so you have to listen selectively, which can be hard.

Another way of hyping, this can be seen alot on btc-e trollbox. Basically that exchanger has a lot of trolls that will keep on typing buy or sell. They are doing it for their own purposes, getting someone that has no knowledge about whats going on to fullfill their order in the market

Exactly what I meant. The BTC-e trollbox is the perfect example, although I have seen it elsewhere too. One wants to sell his coins, so of course everyone has to buy, because the price will skyrocket. And at this point I am not sure who could be trusted as a source of information. Principally, anyone could be giving you false advices intentionally so that he/she has monetary benefits.

Golden rule of trading will be that someone need to lose for another person to get a profit from trading. Basically, none will be telling when is the right time to either buy or sell, mostly people will only tell the opposite of what they do. Whenever someone is telling to buy, basically he is putting a sell order and waiting for it to be taken. That indeed hyping is a common way now to "help" with trading though

I have tried following a strategy out of the box, but it didn't work. Even though it should be working, based on maths etc. There is a lot of experimenting involved.

Dont, follow the trend unless you are whale that you cant got against the trend or either goes out of the box.

When I say tried strategies, I mean running simulated trading, aka tests. But the fact is, based on maths and algorithms such as EMA and more advanced, one should be able to follow the trend and always make profit. In theory. However, in practice, selling is not instantaneous and the prices change so quickly that even a small delay can throw calculations of balance. Plus, of course, there is a trading fee as well that slashes the already small profits. More importantly, I could make a profit if I sold at e.g. 265$, however the sole fact that I am selling reduces the prices and my margin is gone.

True, that is why most people are using bot to ease their trading. Doing trade manually will only get yourself burnt especially if you are doing it in a high volume market where the margin of buy and sell are almost none and not to mention that human's speed is limited, price may shoot up immediately without you knowing , i.e few weeks back someone mistyped a zero on btc-e and executed a 10k BTC buy, shooting the price straightforward.
Another options will be trading in a non fee exchanger , most chinnese exchanger applied a zero fee market though.

[Borisz]

---snip
True, that is why most people are using bot to ease their trading. Doing trade manually will only get yourself burnt especially if you are doing it in a high volume market where the margin of buy and sell are almost none and not to mention that human's speed is limited, price may shoot up immediately without you knowing , i.e few weeks back someone mistyped a zero on btc-e and executed a 10k BTC buy, shooting the price straightforward.
Another options will be trading in a non fee exchanger , most chinnese exchanger applied a zero fee market though.

I was simulatiing some bot trading, but even that didn't go fully according to maths.Even if my bot tries to sell some coins, the pure fact of selling creates a downwards shift in prices.

@ News' influence on BTC price: What I see is that it has a temporary effect  Slight variation because of people thinking what it will bring, then it goes up/down (back) where it (roughly) was. Of course major news have different impact.

[arallmuus]

---snip
True, that is why most people are using bot to ease their trading. Doing trade manually will only get yourself burnt especially if you are doing it in a high volume market where the margin of buy and sell are almost none and not to mention that human's speed is limited, price may shoot up immediately without you knowing , i.e few weeks back someone mistyped a zero on btc-e and executed a 10k BTC buy, shooting the price straightforward.
Another options will be trading in a non fee exchanger , most chinnese exchanger applied a zero fee market though.

I was simulatiing some bot trading, but even that didn't go fully according to maths.Even if my bot tries to sell some coins, the pure fact of selling creates a downwards shift in prices.

Indeed, having bot does not mean thay you will always get profit though, it basically ease you in trading (bolded it). In some situation, trading with bot is much easier though especially in high volume market.

@ News' influence on BTC price: What I see is that it has a temporary effect  Slight variation because of people thinking what it will bring, then it goes up/down (back) where it (roughly) was. Of course major news have different impact.

As a matter of fact, this is actually needed for daily trader. Having either good or bad news will bring on the hyping even more active , which you can check from btc-e trollbox regarding how they react due to the KNCminer coins being moved.
Also if you remember correctly on how the news of several months ago regarding paypal accepting BTC is leaked, people are buying like crazy but somewhat the price is going back to where it was weeks later. News do have slight effect for the price but the thing is due to the market being manipulated, we could not even predict wether the X or Y news will bring an impact or no the market

[knowhow]

---snip
True, that is why most people are using bot to ease their trading. Doing trade manually will only get yourself burnt especially if you are doing it in a high volume market where the margin of buy and sell are almost none and not to mention that human's speed is limited, price may shoot up immediately without you knowing , i.e few weeks back someone mistyped a zero on btc-e and executed a 10k BTC buy, shooting the price straightforward.
Another options will be trading in a non fee exchanger , most chinnese exchanger applied a zero fee market though.

I was simulatiing some bot trading, but even that didn't go fully according to maths.Even if my bot tries to sell some coins, the pure fact of selling creates a downwards shift in prices.

Indeed, having bot does not mean thay you will always get profit though, it basically ease you in trading (bolded it). In some situation, trading with bot is much easier though especially in high volume market.

@ News' influence on BTC price: What I see is that it has a temporary effect   Slight variation because of people thinking what it will bring, then it goes up/down (back) where it (roughly) was. Of course major news have different impact.

As a matter of fact, this is actually needed for daily trader. Having either good or bad news will bring on the hyping even more active , which you can check from btc-e trollbox regarding how they react due to the KNCminer coins being moved.
Also if you remember correctly on how the news of several months ago regarding paypal accepting BTC is leaked, people are buying like crazy but somewhat the price is going back to where it was weeks later. News do have slight effect for the price but the thing is due to the market being manipulated, we could not even predict wether the X or Y news will bring an impact or no the market

i dont buy direct from exchanges i buy for a resseler that plays with market soo lets say the btc worth around 300 dollars that users charges me 50 dollars above and done...even if he bought btc low or high the user just got some income and always add a rate above the current rate of btc on that day .I dont buy direct because most exchanges ask too many details about the trader and allow wire transfers as credit card and i dont like it.

[ilyasilyaso]

There are two techniques commonly used by day traders to increase their profits from market movements. Leverage, or margin trading, means borrowing money on a short-term basis to speculate on the price of bitcoin. The loan is paid back when you exit the position. For example:

The price of bitcoin is $500. You borrow $5,000 to buy 10 bitcoins.
The price of bitcoin rises to $550. You sell your 10 bitcoins for a total of $5,500.
You pay back the loan of $5,000, plus interest (say, $50).
Profit: $450, on a price movement of $50.
Of course, you can also lose a lot of money this way: if the price goes down instead of up, you will lose ten times the price movement. This is what makes margin trading so risky – it is potentially extremely profitable, but can also be very costly.

[arallmuus]

-snip-
Of course, you can also lose a lot of money this way: if the price goes down instead of up, you will lose ten times the price movement. This is what makes margin trading so risky – it is potentially extremely profitable, but can also be very costly.

Good example Unless you forgot that a skilled trader wont even wait for the price to increase by 10 % then sell it after and to mention that there is a way to actually profitted from using this strategy, which is called as constant percentage execute. Skilled traders are always playing with the market like a bot (if they are doing it manually ) , with that said before doing it , they have put in a limit of each buy or sell.

i.e 1 % each time which means that whenever the price shoots above 1 %, they will constantly sell it for 1 % profit instead of above it for safety practice and also do the same thing whenever the price drop (cut lose)

Heard of this saying :

Code:

It is better to get something rather than losing 

P.S : my own saying btw 

As a matter of fact, this is actually needed for daily trader. Having either good or bad news will bring on the hyping even more active , which you can check from btc-e trollbox regarding how they react due to the KNCminer coins being moved.
Also if you remember correctly on how the news of several months ago regarding paypal accepting BTC is leaked, people are buying like crazy but somewhat the price is going back to where it was weeks later. News do have slight effect for the price but the thing is due to the market being manipulated, we could not even predict wether the X or Y news will bring an impact or no the market

i dont buy direct from exchanges i buy for a resseler that plays with market soo lets say the btc worth around 300 dollars that users charges me 50 dollars above and done...even if he bought btc low or high the user just got some income and always add a rate above the current rate of btc on that day .I dont buy direct because most exchanges ask too many details about the trader and allow wire transfers as credit card and i dont like it.

This is another way a trader profitted from the market though. It is somewhat less risky and much highly proffitable also that it is much more less time-consuming, which you can even check from the currency exchange board whereas most people accept at -3 % stamp rate and sell them at +3 % stamp rate (more or less ) , thus this generate a 6 % overall profit for them

Actually most BTC/FIAT exchangers do ask some question especially your identity since it is involving FIAT though and actually it is a normal procedure around

[Febo]

The best  strategy is buying now and never sell it until the price going to $10000. You can't think the price is only $200+, right?

It might happen then you really never sell then. So you have nothing from your investment.
On other hand you can earn from bitcoin price movements.

[randy8777]

The best  strategy is buying now and never sell it until the price going to $10000. You can't think the price is only $200+, right?

It might happen then you really never sell then. So you have nothing from your investment.
On other hand you can earn from bitcoin price movements.

most people don't even know what holding really is. they will probably sell their coins as soon as they see the price went up like 10-15%

[BTCevo]

There are two techniques commonly used by day traders to increase their profits from market movements. Leverage, or margin trading, means borrowing money on a short-term basis to speculate on the price of bitcoin. The loan is paid back when you exit the position. For example:

The price of bitcoin is $500. You borrow $5,000 to buy 10 bitcoins.
The price of bitcoin rises to $550. You sell your 10 bitcoins for a total of $5,500.
You pay back the loan of $5,000, plus interest (say, $50).
Profit: $450, on a price movement of $50.
Of course, you can also lose a lot of money this way: if the price goes down instead of up, you will lose ten times the price movement. This is what makes margin trading so risky – it is potentially extremely profitable, but can also be very costly.

Are you really believe that you will get $50 per bitcoin until your payment time is up? And now the price of bitcoin is just around $224-$225 so I dont think the price will hit until $274-$275 so it is pointless to do that kind of trick

The best  strategy is buying now and never sell it until the price going to $10000. You can't think the price is only $200+, right?

It might happen then you really never sell then. So you have nothing from your investment.
On other hand you can earn from bitcoin price movements.

Are you sure that this might happen? $10,000 is that making sense? May be around $1,000 I still believe it but $10,000 I still can't believe it what will happen if the price has going there

[arallmuus]

-snip-

Are you really believe that you will get $50 per bitcoin until your payment time is up? And now the price of bitcoin is just around $224-$225 so I dont think the price will hit until $274-$275 so it is pointless to do that kind of trick

There is nothing wrong with that, he is simply stating up example so he can indeed put up any number into it but he forgot the vital point that a skilled trader wont even wait for a 10 % increase to sell it, it will be around 0.5-1 % to execute the sell for them

Are you sure that this might happen? $10,000 is that making sense? May be around $1,000 I still believe it but $10,000 I still can't believe it what will happen if the price has going there

Nothing wrong with having speculation though some people loves it actually and also that most people that hold BTC for long term actually have the same opinion about that. Mostly because it is driven by the past perfomance that the price shoot up to $1200 which they believe might happen again after some halving or atleast few tenth years

[Amph]

-snip-

Are you really believe that you will get $50 per bitcoin until your payment time is up? And now the price of bitcoin is just around $224-$225 so I dont think the price will hit until $274-$275 so it is pointless to do that kind of trick

There is nothing wrong with that, he is simply stating up example so he can indeed put up any number into it but he forgot the vital point that a skilled trader wont even wait for a 10 % increase to sell it, it will be around 0.5-1 % to execute the sell for them

unless you can systematically, be good with selling at such low % in the long run, fees would be a problem, those are anyway good shorters traders, a more bullish will wait a bit more before selling to squeeze the maximum amount possible, and the risk will rise too, of course

[arallmuus]

There is nothing wrong with that, he is simply stating up example so he can indeed put up any number into it but he forgot the vital point that a skilled trader wont even wait for a 10 % increase to sell it, it will be around 0.5-1 % to execute the sell for them

unless you can systematically, be good with selling at such low % in the long run, fees would be a problem, those are anyway good shorters traders, a more bullish will wait a bit more before selling to squeeze the maximum amount possible, and the risk will rise too, of course

Fees are mostly 0.25 % which make up 0.5 % for both buy and sell which makes my argument stands on atleast 0.5 % because some exchanger apply a limit/instant execute which the fees only apply to the limit option and most chinese exchanger are applying 0 % fees anyway so it is a bless for trader

The bolded part is actually a standard way in trading. Practice do make things perfect which in this case a skilled trader will now on not how to limit order

i.e since the price is holding at $220 (for example )

Instead of buying a chunk of it for $219, trader mostly set up limit for the order and spread it well, in this case it will be buying at $219 , $218.8 , $218.6  and so on. By making it this way, it is easier to gain profit this way, the price of your buy order will be on the average of those all buy order. By doing this way then if the price is dropped to $218.8, then you will still have some tiny profit out of it because you are not buying them entirely at $219 but instead you spread it further to minimize the risk of losing it

[Borisz]

The best  strategy is buying now and never sell it until the price going to $10000. You can't think the price is only $200+, right?

It might happen then you really never sell then. So you have nothing from your investment.
On other hand you can earn from bitcoin price movements.

This 10'000$ dream is cool, problem is you have no way of knowing if it will ever get there. I'm not saying it cannot/won't, but do you know for sure that it will? Otherwise you will be sitting on a bunch of coins, not doing anything with them, just to find out that in 10 years it is worth the same.

[arallmuus]

This 10'000$ dream is cool, problem is you have no way of knowing if it will ever get there. I'm not saying it cannot/won't, but do you know for sure that it will? Otherwise you will be sitting on a bunch of coins, not doing anything with them, just to find out that in 10 years it is worth the same.

Some people are living in their own delusional dream (cant really blame them though), probably driven by that BTC once reached $1200 and may reach another high peak again someday. The bolded part will be a good scenario if it really happen or the people holding and hoping it to reach $10,000 will be sitting with a worthless BTC in 10 years
Not that Im pessimist in BTC , just that people should learn that it is not a guarantee that the value will increase overtime , best thing would be earning from its movement aka daily trading

P.S : buying and holding BTC isnt really trading but somewhat it is long term investment