trading profitably isn't hard, if you're not human!
the biggest mistake poeple make when they start trading bitcoin, is not sticking to their plan and get swept away in the emotional roller coaster.
billyjoeallen is a good trader, you know how i know, he said this:
billyjoeallen, get the fuck off the forums, and close your short!
BFX will close it for me when I get force liquidated. IDK where get got this kind of resolve... but this is the trade mark of a good trader.
was his call to sell 360+ good? fuck no! but reversing that position now would be MUCH worst. but its REALLY hard to accept that fact, most poeple would have covered by now.
maybe a week from now FUD will be strong again price below 400, and THEN he can think about taking a loss ( or small profit who knows ). until then it only make sense to HODL or add more to the position.
cold unfeeling calculated, thats what is required.
if you FEEL the price is going one way or another and act, your going to get #rect no matter what happens, price could range between 300-500 over and over and you will still manage to lose big.
also note he is basing his trade on a specific speculation " shit will hit the fan, when we try to scale bitcoin " not some technical chart BS.
with that speculation in mind he formulated a plan and is sticking to it, until his speculation is invalided ( in his case he leveraged so another possibility is he "blows up." )
I agree with you about taking out some of the guessing and the feelings, and you can also set up parameters in trading in order that no matter what you profit (or at least most scenarios - absent going to zero).
I am not claiming to be an expert trader or to have any vast experience, but I am claiming to be learning from my trading experience as I go, and I have created a fairly decent and thought out strategy that seems to work really well for me in the past 5 months.
So, for example, if I have 100 BTC in my trading portfolio, every time BTC goes up $10, I trade an approximate percentage of my profits. In this example profits would be $1,000 on a $10 raise in price, and I can trade 10% to 30% ($100 to $300) of those profits as the price is going up. Then when it comes back down, I buy back, and if the price keeps going up, then the dollars are accumulating and left in my trading pool, but because I am only selling a less than half percentage of my profits, I am always going to have enough BTC in my fund to keep profiting from price rises and to keep accumulating BTC along the way because sooner or later BTC prices are going to correct, at least somewhat.
Anyhow there can be decisions regarding how much BTC to trade, and how a guy wants to keep apportioned in his trading account (like mentioned earlier 90% or 80% or some other amount that likely fluctuates with changing market conditions), and for me it seems to make much more sense to put such BTC trading to practice rather than to consider such practices on a theoretical level.
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