Jump to content

TrendFollower

Community Member
  • Content Count

    2,708
  • Joined

  • Last visited

  • Days Won

    52

Everything posted by TrendFollower

  1. @elle, The $3700 area will need to tested again for sure so if holds who knows. The price action before the major drop when it was around $6,500 seems like it was bottoming but this is different beast altogether. At this moment only the price of Bitcoin is in trouble which does not necessarily mean Bitcoin itself is in trouble. I think there is a fundamental disconnect between Bitcoin itself and its price. Positive news or negative news is what will drive Bitcoin to price levels we are about to witness in 2019.
  2. @Caseynotes, Yes they have. IG want to maximise their revenues and profits. I understand their strategy from this perspective. They will be hoping this will entice more traders to trade Bitcoin as the more traders that trade and if around 90% end up losing on their trade, IG are rewarded handsomely. This is why when trading Cryptocurrencies you simply cannot trade against the trend. It is suicidal in my opinion. One must trade with the trend using price action, volume and momentum as key indicators. Moving averages are crucial too and stop losses are a must. Have a look at the chart below that I have posted which shows an increase in volume during this very recent price action over the past few days.
  3. @elle, Interesting. Some of these things could be applied to any potential Oil trade.
  4. @elle I envisage Brent going to $55 and then testing $50 which may provide a strong correction and trend reversal. Trends love round numbers and psychology plays an important part. There will be speculators and Hedge Funds adding to their short positions as the price declines, further amplifying the move downwards. As one can see there is a strong downward bias. This is only an assumptive view and therefore any short trade based on this view would be a speculative trade based on current price action but with possibly better odds and probability in your favour. Also you would be trading with the trend rather than against it. That said Oil could at any point carry out a sharp trend reversal stopping out a lot of trades so it certainly is not easy at this juncture.
  5. Is this current price action merely a relief rally? In my personal opinion for more shorter time frame traders Cryptocurrencies (with all its volatility) presents remarkable trading opportunities both long and short. Even though most Crypto's have a downward longer term trend in play there are opportunities to profit from short term long trades on the relief rallies, short term trend reversals and volatility. The opportunities do present themselves to day trade or possibly 24-48 hour trades. It is extremely high risk so one must really understanding trading in volatile markets before doing so.
  6. @larrybreheny10, When you log in you should have the option to open either the Spread Betting platform, CFD account or Shares account should you have them. When you open your Spread Betting account it should open a new window (like a tab) with this on there from which you can place trades.
  7. The current price action of Bitcoin looks as if it is setting up for the next leg downwards. Let's see.
  8. Yes trading Bitcoin on a leveraged account is extremely difficult and anyone who suggests otherwise well... I think some key drivers for Bitcoin going forwards (I expect something to be announced on these in 2019) are the SEC approving at least one Bitcoin ETF in the US. On top of this institutional money flowing into Bitcoin driving the price up. To support this would be certain jurisdictions approving regulation which is more favourable to Bitcoin. I am both long and short. Let me explain and I do not suggest others try this at home as it could be dangerous to your health. I 'invested' in Bitcoin when it was around the $2,000.00 area using XBT Provider One product. It is an Exchange Traded Note (ETN). This is of course a 'long' position and with hindsight I would have been wise enough to sell around the $19,000 level but I did not and my profits have diminished but even after such a mammoth drop I am still in profit which is pretty remarkable. This was a long term investment for me. I trade Cryptocurrencies and am short Bitcoin using a leveraged spread bet until there is a clear and strong trend reversal. Yes this may sound crazy but I believe long term the new asset class of Cryptocurrencies and I do not want to physically hold any of them in case they do fail and become worthless which is why I only trade and invest in them at this stage rather than physically acquire them. I am sure many will think how can you invest in an asset yet short it at the same time. Well let me try and answer this. I invested in Bitcoin a couple of year back but the recent price action has been extremely negative and the most prudent and sensible trade was to short it. I wish I had shorted at $19,000 but I did not.
  9. @Mercury, I am trying to take this thread back to trading Bitcoin and its price behaviour as I clearly stated in my previous post and response to you. I could say that you do not want to hear anything that does not fit with your views and one could argue that you could have tunnel vision too. Anyway I do not want to discuss such things. There are times when one must have an open mind and embrace the technological revolution we are about to see in things like Cryptocurrencies, Blockchain, Tokenisation, Robotics/Automation, Artificial Intelligence and Internet of Things (IOT). I really want to stick to what this thread was about which is Bitcoin - Price Behaviour so here goes another attempt.
  10. Right now may I ask if anyone else is shorting Bitcoin from the IG Community? If so then what are your thoughts about the psychological $3,500 area? Is that where others are setting their stop losses? I think if Bitcoin did hit $3,500.00 then there could be a large reversal at that stage closing a lot of shorts along the way. I am not asking for predictions on how much they think Bitcoin will go down. I am asking for those who are shorting Bitcoin about their stop losses and where they have set them and those with live trades, how far they think Bitcoin will go down.
  11. @Mercury, Price action would be current price behaviour. Past price behaviour is what some may be using to form an opinion of say Bitcoin making an all time higher high. My view on this is that I simply do not know what is going to happen in the future and past price behaviour and trends do not always lead to correct future assumption whether that be Bitcoin or any other asset. If Bitcoin's rise to $20,000 was a bubble then what about Gold's rise to $2000? It has never seen such heights since. What about Natural Gas's famous rise before the financial crisis? What about Oil's famous rise during a similar time period? These so called 'bubbles' are just mere exaggerated speculation using large doses of leverage. Bitcoin just happened to get a lot more media coverage worldwide than other smaller bubbles. But so what if it was a bubble? That is fine. Those with stops losses and sound risk management should never worry about bubbles. It is part of the trading environment. One must embrace them as these bubbles provide huge profitable trades in a short timescale. No I am not stating that Bitcoin will be the next Amazon. I am merely using Amazon as an example of why one must keep an open mind on what is possible. I am extremely passionate and enthusiastic about the Cryptocurrency, Blockchain and Tokenisation area as well as Commodities so I can justify my time and efforts to post on such threads and will continue to do so as when I have time. You clearly do not intend on trading Cryptocurrencies either long or short and if your view is that there are better markets to trade then your time will be appreciated on those threads for those markets where you can offer your thoughts on trades that you actually end up trading. You make a very good point and as I started this thread I think I need to take it back to the 'Price Behaviour of Bitcoin' as the title of the thread suggests. Thank you very much @Mercury for just reminding me of this as I think I myself got sidetracked in discussing things with you that are not necessarily related to the price behaviour of Bitcoin. 👍
  12. @Caseynotes, yes I agree with your last paragraph. Past performance is not necessarily a 'given' to repeat itself but it we make the assumption on Bitcoin that it does then on every major correction since inception Bitcoin has gone to make all time higher highs. That does not mean it will behave in this manner going forwards. However when it suits, historical data is important to form 'technical analysis' strategies and signals. The historical data on Bitcoin tells a 'narrative' albeit historical and there is no guarantee that it will behave the same going forwards. I have seen Bitcoin die a hundred deaths and it is still here. In fact we are more closer than ever to institutional investment in Cryptocurrencies, more user cases (albeit slow) than ever, more exciting projects than ever from a Blockchain and Tokenisation perspective. The comparison with Tulip Bulbs is not a fair one. How many use cases did Tulip Bulbs have? How important were they to the world? Digital currencies, digital payments and the use of Blockchain for international transactions has a major potential across the globe. We are talking $trillions. The Dot.Com era saw was a large correction weeding out the garbage. That is exactly what we are seeing in Bitcoin and Cryptocurrencies and it is extremely healthy. I welcome it as it will make the asset class far more stronger and resilient going forwards just like 'Tech Stocks' are now. There are some wonderful technology companies which have emerged and produced price / profit gains to simply admire. We are also getting close to forms of regulation based in certain jurisdictions. Bitcoin and Cryptocurrencies are in a far more healthier position than in the past and they have ever been. People are using the price action to form their opinions on the asset class rather than the behaviour within the asset class itself. There is a lot of 'rubbish' in the media about Bitcoin and Cryptocurrencies so the sources need to be credible and reliable.
  13. @HarnibalBarcA, I do not know what machine you are using but I use an iMac with a bluetooth mouse. When I move my finger left to right or right to left it accordingly makes the chart larger and smaller based on timeframes. Moving my finger towards the right on the mouse increases the timeframe and moving it to the left decreases the timeframe thus enlarging the chart accordingly in the process. I don't know if this is just a feature when using the mouse on an iMac or whether it is a user experience for everybody regardless of machine and location. It will be interesting if you can make the chart larger as per my explanation above or not. Do let me know.
  14. @Mercury, Just like the US Dollar is the worlds reserve currency, Bitcoin, could be the reserve currency for Cryptocurrencies. I do not think Bitcoin is going anywhere for the foreseeable future even if the price was to go down to $3,000, $2,000 or even $1,000. I do not see Bitcoin going all the way down to $100. I think in my lifetime we will never see Bitcoin at $100 and if we do then I will accept that Bitcoin will have failed. If Bitcoin fails then so too do the majority of the 'alt coins'. I don't particularly likes these forks and Bitcoin has already had Bitcoin Cash which itself has had a fork and I don't like this as it paints an unclear 'road map' going forwards. I would like to see re-mergers where Bitcoin could merge with Bitcoin Cash, Bitcoin Gold and Bitcoin Diamond to become one big giant Cryptocurrency or I would like to see Bitcoin Cash be used for payment transactions, Bitcoin Gold as a store of value and Bitcoin as the mother of all Cryptocurrencies that they must all be pegged to. I can see your point and where you are coming from and you may well end up being right and 'spot on'. I see Ripple is concentrating on business transactions across the globe and Stellar is concentrating on individuals paying each other across the globe but both are on a very small scale at the moment. This could change but it certainly is not Bitcoin leading the way in this which is why I think it will become the reserve currency within the 'Crypto Universe'. My views could change as new research is conducted and more analysis is carried out but this is certainly an intriguing and fascinating asset class and I am following the journey with huge interest. Why do you think IG are offering its clients the chance to trade Cryptocurrencies? Do you think IG are taking its customers for fools? 😂 Actually I think I know what your answer will be to that so don't answer this particular point. 🤣
  15. @Mercury, Crypto's can be traded just like any other assets both on the 'long side' and the 'short side' based on price action. It really is no different to trading stocks, commodities, etc. If you use technical analysis then it can be applied to Cryptocurrencies. It should not matter whether you understand Cryptocurrencies or you believe in them. You are merely trading based on price action. When trading Cryptos then one must ignore the 'market noise' just like in Commodities and Stocks. I have traded many companies which I did not believe in and profited based on price action. I will just have to accept that our views will differ on this. As someone who follows 'Trend Following' principles then I do not think it is important to understand or believe in the asset you are trading as long as you are trading principally on price action and trends. Cryptocurrencies brought to the world - Blockchain Technology. Blockchain and Cryptocurrencies are now bringing to the world 'Tokenomics', 'Token Economy' and 'Tokenisation'. Some of the research I have conducted on Blockchain and Tokens is fascinating and a strong movement has already began to tokenise assets to aid in transfers and transactions. I totally appreciate that many will not understand my views or think I am being stubborn but the future is tokenising of assets and this will be based on Blockchain technology. Bitcoin and other alt coins are after all 'tokens'. We will have to agree to disagree.
  16. I think I commented on another thread this very point that Amazon during the Dot.Com period lost around $1.5 billion. It is now, 18 years later, only the second company to have a market cap of $1 trillion dollars. Yes, a lot of Cryptos will die, but the strongest will survive and adapt to market conditions and any regulations going forwards. This type of price action and major corrections have occurred a few times since inception so there is nothing new here.
  17. @Caseynotes, I believe he observed, Jesse Livermore.
  18. @cryptotrader, I assume you mean 'Proof of Work' when you state POW? The World Economic Forum have no vested interest as far as I am aware trying to promote Blockchain. The World Trade Organisation (WTO) are making some interesting predications and yes that is all they are predictions which should not necessarily mean they will come true but the article presents them below. Blockchain will add US$3tn to international trade by 2030, predicts WTO https://www.gtreview.com/news/fintech/blockchain-will-add-us3tn-to-international-trade-by-2030-predicts-wto/ I have commented on other threads about the 'Token Economy', 'Tokenomics' and 'Tokenisation'. The article below is happening. Potential $20M Real Estate Sale Looks To The Blockchain https://www.pymnts.com/blockchain/2018/real-estate-sale-digital-payments-the-hub/ I think Blockchain is still gaining traction regardless of the 'noise' surrounding the price action of Bitcoin and other Cryptocurrencies. They are just merely behaving in major correction mode. This has happened several times before since inception. It is nothing new but Blockchain is continuing to progress. I accept the adoption is slow but large corporations are seriously looking to apply Blockchain technologies to their businesses. Time will tell but based on the reading and research I have conducted in this area I am confident that Blockchain is here to stay and is the coming future. There will be many areas where it is not needed and therefore not applied but for auditing purposes, supply chain purposes and transaction purposes it is already starting to gain momentum.
  19. This article touches on security tokens. I have mentioned this in other posts and some of you may remember my references to 'Token Economy', 'Tokenisation' and 'Tokenomics'. If one opens their mind then one may begin to appreciate the strong possibility of this which could be coming towards a future very soon. ‘Blockchain Revolution’ Is Bigger Than Anything We’ve Seen in History: Overstock CEO https://www.ccn.com/blockchain-revolution-is-bigger-than-anything-weve-seen-in-history-overstock-ceo/
  20. I just read this article (link included below) and thought it was very interesting. XBT Provider is also Swedish. Cash is Rapidly Disappearing in Sweden https://www.ccn.com/next-big-crypto-market-cash-is-rapidly-disappearing-in-sweden/
  21. I just tried and I could access paying by 'Card', 'Paypal' and by 'Bank'. It seems to be working.
  22. @Mercury & @Caseynotes, You may wish to look at the link below. https://www.bullionvault.com/gold-guide/gold-etf I used Bullion Vault during the last major Gold bull run. I also used ETF Securities and their ETF and ETN products. Yes there are counter party risk issues with ETN's but I used them nevertheless and that is a different topic all together. Have a look at ETF Securities whose products I do use. They offer a wide variety of Commodity ETF's and ETN's. They offer physically backed too. People thought Amazon was 'pie in the sky' and during the dot com bubble it lost $1.5bn. It is now only the second $1 trillion dollar market cap company in the world and just a mere 18 years later.
  23. @mjr6, Yes they did, those were the days! It is all about demand, supply, liquidity and risk management for IG. They need to manage their risk on 'Cryptos' as an extremely high risk asset class with lots of volatility which many just simply cannot stomach. It is the spread where IG profit so their review will be interesting. 😉
  24. @Mercury, I shall be following your analysis on Oil to see how this plays out. I am intrigued. Out of interest in your personal opinion if there is a long trade on what sort of price do you think it could hit? I am looking at it from a points/profit potential. I have a feeling that whilst Trump is the US President then Oil prices will remain on the lower side so from a fundamental perspective I do not envisage higher oil prices for now or the short term going forwards. There can be 'incidents' which could cause the oil price to spike upwards but I would not be surprised to see Brent hit $50 and US Crude to hit $40.00.
  25. @Bluepowder, I will try and explain in a simple manner using plain and clear English. Bitcoin is what is called a 'Cryptocurrency'. You cannot hold it or feel it. It does not have a physical sense. It is 'digital' and a form of what you could describe as electronic currency. The technology behind it is called 'Blockchain'. If you want to know more about 'Blockchain' then I recommend you read some of my previous posts on this subject area. You may find them useful. It is a 'decentralised digital currency' which basically means that it does not rely on a central bank and can be sent from each user (peer to peer) using Bitcoin's network without the need of any intermediaries. On a fundamental level Bitcoin could be described as a token with verification based on Cryptography. What a lot of people forget is that Cryptography has been around for many years. No single institutions like a central bank controls Bitcoin hence it is 'decentralised'. It solves the 'double spending' problem, has limited supply, transactions cannot be reversed and has clear divisibility. I will leave it at that. If you search for @TrendFollower and some of my previous posts on Bitcoin and Blockchain that I have posted on the IG Community over the past year or so then it will provide you with more specifics and detail. Hope my explanation was easy to understand and helpful.
×
×