Showing results for 
Search instead for 
Do you mean 
Reply
Highlighted
Frequent Contributor
Posts: 128
Registered: ‎24-07-2017

Bitcoin is the smart trade at the moment - Trend is your friend!

At the moment, Bitcoin, is the smart trade. The smart money is on Bitcoin right now. Put to one side whether or not you think Bitcoin is in a bubble waiting to fall. From a trend following perspective the trend is strong and long!

 

Bitcoin is one of the best performing asset and currency in 2017. Bitcoin is outperforming Gold in times of crisis and political uncertainty. For example, when the rhetoric started between US and North Korea then yes Gold did move upwards but Bitcoin moved more upwards. During this period, Bitcoin, performed better than Gold. Bitcoin was actually less volatile than UK FTSE 100 stocks during this same time period. A popular share like Lloyds was plummeting between 1% - 3% in a day. 

 

The trend is your friend when it comes to making profits consistently. From a technical perspective, just look at the charts. It tells you a very interesting story. Look at the 20 day, 50 day and 200 day moving averages. It may be wise to trade long on any pullbacks looking closely at Oscillators.

 

I don't think there is a better trade on IG.com than Bitcoin right now. If there which can make you as much money as Bitcoin per day, week or month then please let not just me but everyone reading these posts know.

 

Occasional Contributor
Posts: 17
Registered: ‎29-09-2016

Re: Bitcoin is the smart trade at the moment - Trend is your friend!

NIce info you are shring here. I am always scared of bitcoin and hear a lot of tarders dont touch it. 

 

I guess set limit orders on the pull backs but i find close stops do stop you out as the volitilty gets high.

Thoughts.

 

TreV

Frequent Contributor
Posts: 128
Registered: ‎24-07-2017

Re: Bitcoin is the smart trade at the moment - Trend is your friend!

[ Edited ]

It is very scary indeed. Risk management is crucial. Friday was very difficult and the ranges with changing and so setting stop losses and limits were very difficult.

 

To trade Bitcoin effectively you need large cash / equity balance, balls of steel, be ruthless and not let emotion get in the way and most important not to trade against the trend.  

Occasional Contributor
Posts: 17
Registered: ‎29-09-2016

Re: Bitcoin is the smart trade at the moment - Trend is your friend!

Ok I am started out with a 15 k account. Do you think that's enough?

 

I am mainly trading on the currencies and indices gold and my main trading is scalping price action and news events. And now i am starting to look for trends and jump on them. I trade on the news events sometimes at the time or after it is settling down in price action.

 

He is another trade I do and would like your feed back.

I traded on gold last week and made 2k in 3 mins. How I did this:   I waited to be spiked into the market by setting a order and a limit.

The spikes put me in the trade and then staright back down to claim profit and of course I closed out. Is they a name for this type of trading and the spikes seem to only happen when gold has a lot of volume at the time or a news events is happening.

 

Plus I look at Finbiz to look for over bought or over sold tardes and set orders.

 

Thanks for your time

 

TreV 

Frequent Contributor
Posts: 128
Registered: ‎24-07-2017

Re: Bitcoin is the smart trade at the moment - Trend is your friend!

I cannot comment on whether a £15,000.00 account is enough or not. It all depends on what your aim and objectives are. How much are you looking to make per day, week, month of year? What are your targets and what are the specifics in your trading plan.

 

Bitcoin is extremely high risk. Its as risky as they come. It is also about having tight controls, a specific plan / trading strategy and sticking to it. Risk management is crucial.

 

Failing to plan is a plan to fail. Do not even attempt to trade bitcoin without a plan. There are lots of different ways to trade Bitcoin. So for example the long term trend is up and until this reverses then you could open a long position and hold until your profit target is met. However, remember let your winners run and cut your losses as quickly as possible. Or you could have specific price targets short term to buy and sell and use 'limit' and 'stop losses' depending on the short terms trends.

 

Whatever you choose you must take emotion out of it. Let the price action and volume determine your decisions. Everything else is 'noise'. The media can influence trades to make incorrect decisions so be careful of TV and print media.

Occasional Contributor
Posts: 17
Registered: ‎29-09-2016

Re: Bitcoin is the smart trade at the moment - Trend is your friend!

Top man,

 

I have noticed when i place stops in I seem to get stopped out. When I dont use them i do well. But this leave me open to bad things.

 

Maybe ill have to lower trades and to give me more margin on the stops?

 

Plus can you advise? I traded on BOC today, and the rates did not go up, thus thinking the pound would go down it did not it went up??

 

Please confirm what happens to the pound or dollor  when the interest goes up or down?

 

Trev.