Perfect example of why S&R is just plain wrong analysis.

[Arnie]

It reminds me of a story between an analyst and a trader: The analyst, here look at this chart, the price will go like this, it will hold here and then go like this. Trader: How do you know? Analyst: It is clear, here look, price moves according to my model in the past, it will repeat. Trader: So, price should hold here? Analyst: Yes, I'm sure. Trader: Picks up the phone, sell 100000 shares on XYZ. Price drops true the line of the chart. Trader: What tells your chart now?

I remember reading a passage like that in one of Schwager's books.

 

[deaddog]

You need margin to short. Once your account goes below this level, they will close you out. Also, except for futures I think, there is a cost to carry a short, so that makes it even worse. Sure, holding BITI doesn't incur fees, but I'm sure this is already worked into the price. (ie. Bitcoin goes up 10%, but BITI actually drops 11% or whatever in order to compensate for the extra fees of shorting.)

I have margin accounts. But I don't need them to short Bitcoin if I use the ETF BITI.
If I shorted Bitcoin and held while it went up there is no limit to my losses as long as I can fund the account. If I buy BITI all I can lose is my initial investment.
An example is SQQQ which shorts the QQQ has had 6 reverse splits since its IPO

 

[deaddog]

I would just bail on biti or close for a loss. It's just a little kicker not equal size.

I take it you then have a fair sized position started in BTCC.b and will be adding more if/when it drops.

If you bought Biti when Bitcoin was 16k @$40, you would need Bitcoin to drop to 16k again to break even. Not likely going to happen. Even if you bought now @$8, eventually every biti position will be worthless. I'm treating my biti position like a long put. ..just without the fees and expiration.

This is true. Sounds like a pretty good arguement for using stops and limiting your losses.

 

[danielc1]

I remember reading a passage like that in one of Schwager's books.

This is exactly the reason why every trader uses stops. There is a supply and demand every moment and when that gets out of wack, no theory will hold.

 

[wxytrader]

I'm out... you are an accident waiting to happen.

You just have no confidence in your trading if you use stops. If it drops just average down. Factor in risk of bankruptcy and that's it.

 

[wxytrader]

I take it you then have a fair sized position started in BTCC.b and will be adding more if/when it drops.

This is true. Sounds like a pretty good arguement for using stops and limiting your losses.

There are no losses when you're accumulating just cheaper stocks.

 

[deaddog]

There are no losses when you're accumulating just cheaper stocks.

That remains to be seen. Keep us posted.
Let us know when you exit BITI.

 

[wxytrader]

That remains to be seen. Keep us posted.
Let us know when you exit BITI.

Will do. Probably going to hold them till July when I'm assuming I'll be done accumulating. Probably averaging down if we complete an ABC here up to about 68k or whatever... I'll do the fibs later.

 

[danielc1]

You just have no confidence in your trading if you use stops. If it drops just average down. Factor in risk of bankruptcy and that's it.

I use stops and my confidence is just fine in my trading, thank you. Averaging down is not my game. If you make al what you are posting, a succes, more power to you. I really hope that with all the knowledge you have displayed also make money. You are intelligent enough. But how stupid would it be, that you are just posting your findings because you have to convince yourself that it works. Most people that are unsure about their knowledge, speak or write about it to other people to make it a reality. If that is the case, just let it go and stop predicting price and really learn what trading is all about.

 

[wxytrader]

I use stops and my confidence is just fine in my trading, thank you. Averaging down is not my game. If you make al what you are posting, a succes, more power to you. I really hope that with all the knowledge you have displayed also make money. You are intelligent enough. But how stupid would it be, that you are just posting your findings because you have to convince yourself that it works. Most people that are unsure about their knowledge, speak or write about it to other people to make it a reality. If that is the case, just let it go and stop predicting price and really learn what trading is all about.

(2008) Lambo is a reality.