Guy loses 240-600 BTC trying to short

[eddyfly]

 

Guy loses 240-600 BTC trying to short

jezzzzz, that's not a 2017 good start

[Chinesegandalf]

So what up with your friends now? Did he recovers already? Maybe he make a good fortune from sorting now.
Hopefully he already recover what he lost.

[dat.ho12492]

me too, hacker attack me, i lost all money, Sadly in 2017

[Zadicar]

https://twitter.com/whalecalls/status/815598251319640064

Okcoin $BTCUSD Quarterly futures has liquidated a short position of 47857 contract at 1,065.58 - 2017-01-02 00:38:56

I tried to warm my friends on IRC about the dangers of shorting, but they wouldn't listen.. they think they can time the market, when this is impossible, you can only look forward to trying to predict the fundamentals, and the fundamentals are clearly telling us to buy and hold long term. People that bought every dip instead of trying to be the smartass that tries to short has made massive gains this year.

Bitcoin price decreased from $1130 to $946 recently.

Shorting can be profiable if done at the right time.

I was expecting that bitcoin price correction.

Now people will start massively claiming that they have foreseen this price correction

If you really expected it, why didn't you short Bitcoin after all? Those who actually expected it, poured their money into shorts. Not surprising that they mostly lost their coins. It is easy to be wise after the event. Folks had been expecting correction since the price reached 800 dollars per coin and so what? Market manipulators waited until people started to really put their money where their mouth is and then grabbed all their dough (as they always do)



The basics of trading for kids

This is how whale and bagholders do play regarding on bitcoins price and there are only two things of people in the market on which there are earners and there a losser or burnt out most of their coins.Trading/investing into bitcoin is not really an easy stuff specially if we are aiming on profits and we should really think smart first and control our emotions.Seeing the candle sticks on the bitcoin chart earlier sticks signifies already a downtrend which it does happen on yesterdays.

[BrewMaster]

https://twitter.com/whalecalls/status/815598251319640064

Okcoin $BTCUSD Quarterly futures has liquidated a short position of 47857 contract at 1,065.58 - 2017-01-02 00:38:56

I tried to warm my friends on IRC about the dangers of shorting, but they wouldn't listen.. they think they can time the market, when this is impossible, you can only look forward to trying to predict the fundamentals, and the fundamentals are clearly telling us to buy and hold long term. People that bought every dip instead of trying to be the smartass that tries to short has made massive gains this year.

Bitcoin price decreased from $1130 to $946 recently.

Shorting can be profiable if done at the right time.

I was expecting that bitcoin price correction.

Now people will start massively claiming that they have foreseen this price correction

If you really expected it, why didn't you short Bitcoin after all? Those who actually expected it, poured their money into shorts. Not surprising that they mostly lost their coins. It is easy to be wise after the event. Folks had been expecting correction since the price reached 800 dollars per coin and so what? Market manipulators waited until people started to really put their money where their mouth is and then grabbed all their dough (as they always do)



The basics of trading for kids

i disagree with most of what you said specifically the chart.
because it is a correction after a bubble, and a bubble is a normal thing that happens everywhere, the difference here is that people are seeing it for the first time in their lives and never seen any other market to have bubble.

also the term dead cat bounce is mostly for a dying market when price is generally falling for a long time and when it bounces back they call that dead cat bounce. in this case bitcoin has to fall from 900 to 200 and in this period the bounce backs are what you showed in the picture. but right now these are normal spikes due to volatility.

and not to mention that this chart is only showing a tiny part of what is really happening.

[deisik]

Now people will start massively claiming that they have foreseen this price correction

If you really expected it, why didn't you short Bitcoin after all? Those who actually expected it, poured their money into shorts. Not surprising that they mostly lost their coins. It is easy to be wise after the event. Folks had been expecting correction since the price reached 800 dollars per coin and so what? Market manipulators waited until people started to really put their money where their mouth is and then grabbed all their dough (as they always do)

i disagree with most of what you said specifically the chart.
because it is a correction after a bubble, and a bubble is a normal thing that happens everywhere, the difference here is that people are seeing it for the first time in their lives and never seen any other market to have bubble.

also the term dead cat bounce is mostly for a dying market when price is generally falling for a long time and when it bounces back they call that dead cat bounce. in this case bitcoin has to fall from 900 to 200 and in this period the bounce backs are what you showed in the picture. but right now these are normal spikes due to volatility

"I disagree because I disagree"

But really, how do you know that a market is dying? If it is still being traded, you can't possibly know this in advance, so all your considerations are, technically speaking, meaningless and inconsequential. Conversely, you can't know how low Bitcoin is going to fall, just like the guy who is the object of this discussion hadn't expected Bitcoin to rise that high before. So what is your point actually, just popping up and saying some empty verbiage? You have the right, indeed, but never forget who is your campaign manager

and not to mention that this chart is only showing a tiny part of what is really happening.

Okay, let's take a look at the bigger picture:



The price at the top of the rebound (which is pretty pronounced here) was over 1,000 dollars per coin, right now it is a little over 900 dollars. But never mind, we still have a lot of room below to go further down, this may be only the beginning

[BrewMaster]

-snip- So what is your point actually, just popping up and saying some empty verbiage? You have the right, indeed, but never forget who is your campaign manager

if you don't like my opinion or disagree with my speculation you don't have to attack me, jeez man relax.

right now it is a little over 900 dollars. But never mind, we still have a lot of room below to go further down, this may be only the beginning

the only thing i can tell you since you apparently dislike it when people disagree with you is that lets wait a couple of weeks and see what is going to happen.

[cellard]

Okay, let's take a look at the bigger picture:



The price at the top of the rebound (which is pretty pronounced here) was over 1,000 dollars per coin, right now it is a little over 900 dollars. But never mind, we still have a lot of room below to go further down, this may be only the beginning

Or maybe it's the end of the correction and $900-mid $800's is the new floor/consolidated higher price after the $1139 peak... it's all about making the gamble of either holding, or shorting hoping for that $700, or even $600's dip.

What are you going to do? On one hand you have the opportunity to make extra BTC, but you can lose your position if it keeps going up and you'll buy at a loss.

On the other hand, you may lose on that current price to 700-600'ish dip but risk 0% in the long term, and we all know long term for this year means higher than the ATH. How high? Nobody knows, it could be 2000 or it could be 10000... gamble on.

[avikz]

Shorting is form of trading and it is as risky as taking along position. Every trade is risky. It depends of your risk taking capability on how much you can invest even after knowing that you may loose all of them.

So don't blame shorting instead blame his capability that he couldn't play it right and lost the money. I have made a lot of profit from shorting technique and also lost some. 

[buwaytress]

What does 'shorting' mean?

An action of selling  or trading shares with an expectation of the price will go down over time and can rebuy at a lower price to gain profit.

Code:

A short, or short position, is a directional trading or investment strategy where the investor sells shares of
 borrowed stock in the open market. The expectation of the investor is that the price of the stock will decrease
 over time.

Read more: Short (or Short Position) Definition | Investopedia http://www.investopedia.com/terms/s/short.asp#ixzz4UcU6i1bq

What I find interesting is that some people refer to shorting to not only selling and expecting to buy back cheaper, but doing so with leverage. As in shorting implies leverage (which means they are losing more money than the difference between the selling point and the new higher price after selling). You can end up in debt even.

I think most people reefer to that when they talk about shorting, which is why it's so dangerous, you can go bankrupt if you screw it up. A lot of people were aiming to short the market at 1k expecting a drop and now they are losing their shit, look at the graph.. it's 1030 already and climbing.

Never mind the current price right now or even yesterday - you have an important point to take note of. A lot of traders are using incredible leveraging to short and while this sounds attractive, it simply puts you at so much exposure to sudden spikes in opposite directions.

Learn to trade first with small or no leverage, and always with a lot of healthy room for your stop loss to activate.

[Victoo]

Imagine his profits though if the price where to correct. I'm sure he has several new positions open as we speak.

[pacifista]

What does 'shorting' mean?

Short means going down. And long means going up. They pick the wrong way thats why they pay for it. That would be a huge money if they choose to go long.

[pooya87]

Okay, let's take a look at the bigger picture:



The price at the top of the rebound (which is pretty pronounced here) was over 1,000 dollars per coin, right now it is a little over 900 dollars. But never mind, we still have a lot of room below to go further down, this may be only the beginning

Or maybe it's the end of the correction and $900-mid $800's is the new floor/consolidated higher price after the $1139 peak... it's all about making the gamble of either holding, or shorting hoping for that $700, or even $600's dip.

What are you going to do? On one hand you have the opportunity to make extra BTC, but you can lose your position if it keeps going up and you'll buy at a loss.

On the other hand, you may lose on that current price to 700-600'ish dip but risk 0% in the long term, and we all know long term for this year means higher than the ATH. How high? Nobody knows, it could be 2000 or it could be 10000... gamble on.

at this point i wouldn't call it a gamble, just buy around the $820-$850 range and hold, the chances of going lower than this is very slim and you can place some stop losses if you are that afraid. but the chances of staying here and going up compared to going down is a lot more.
i am not saying $2000, $10000 because it is getting ahead of myself but i am saying this stupid volatile time will end soon and we can see another slow rise like last years.

[ajaxmoor]

240-600 BTC isn't really a big amount when you compare it anything to the big leaves. I have had personal family and friends who have lost as much by trading and investing in options.

Too bad for him though. A rise was totally unexpected, and I feel the 1100 price was the best time to short.

[DigiSoul]

Whats IRC?

[deisik]

at this point i wouldn't call it a gamble, just buy around the $820-$850 range and hold, the chances of going lower than this is very slim and you can place some stop losses if you are that afraid. but the chances of staying here and going up compared to going down is a lot more.
i am not saying $2000, $10000 because it is getting ahead of myself but i am saying this stupid volatile time will end soon and we can see another slow rise like last years.

How do you know that?

That the chances of going up (or just trading sideways) are higher than going down? I guess it is no more than your feelings. Note that we are not yet reached the early December highs. The price trading in a certain range during the last two days is obviously has more to do with accumulating more liquidity in the market which evaporated (read changed hands) in the recent crash. If most people turn out to be buying now, you can expect the price to go lower eventually (market will fool them again)

Whats IRC?

Internet Relay Chat - something like SMS messaging for browsers

[bryant.coleman]

Great story. I have little sympathy for the guy. He got greedy. Shorting equities is risky enough, and he dared to short something which is even more volatile. Hopefully, topics such as this one will discourage the noob spammers from posting "trading is a legitimate way to earn Bitcoin" and "gambling and trading are the best ways to earn Bitcoin" around here non-stop.

[Barnabe]

Great story. I have little sympathy for the guy. He got greedy. Shorting equities is risky enough, and he dared to short something which is even more volatile. Hopefully, topics such as this one will discourage the noob spammers from posting "trading is a legitimate way to earn Bitcoin" and "gambling and trading are the best ways to earn Bitcoin" around here non-stop.

It was a bet, but people have sympathy because they picture themselves in this situation.
This is a big amount (enough to buy a house in most developped countries): it's a shame he lost it, but I guess he would not complain if he had won.

[deisik]

Great story. I have little sympathy for the guy. He got greedy. Shorting equities is risky enough, and he dared to short something which is even more volatile. Hopefully, topics such as this one will discourage the noob spammers from posting "trading is a legitimate way to earn Bitcoin" and "gambling and trading are the best ways to earn Bitcoin" around here non-stop.

It was a bet, but people have sympathy because they picture themselves in this situation.
This is a big amount (enough to buy a house in most developped countries): it's a shame he lost it, but I guess he would not complain if he had won

You should not forget that these bitcoins that he sold at a lower price were obviously bought by some trader or a group of traders and likely sold at a higher price. In this manner, why should we sympathize him and not the guys who bought these bitcoins from him and thus profited. What if the price plunged as he had expected and at the right time, whom would we feel sorry for then?

This is a tough game, someone wins, someone lives under the bridge

[sartorpc]

it is painfull to see someone loose so many btc's, trading is always risky and shorting is too.