RE: LTCBTC - Bullflag Formation - looking for breakout on volume to drive price higher!
Absolutely, totally depends on individual style, Im looking for trade opportunities but mitigating risk by using stop losses. Very different, sort of like swing trading and picking a base currency (as you mentioned BTC {for now}). But its sort of an amalgamation of Equities Trading and FOREX - gives us alternative exits.
Suppose BTC declined but ETH maintained its USD value - BTC is your exit.
Or
As has occured, ETHUSD maintained a RANGE while its value in BTC took a steep decline - one could have profited in USD.
Trading, with skill, knowledge, patience and willingness to learn is a viable way to accumulate an investment - Require Diligence and Strict Rules based on trading plans.
Thanks for your comment - absolutely important for people to understand if they are investors or traders.
I think we are seeing something which is a both trading and investing instrument at the same time :-)
Trading is an irrational activity and investing is a rational activity. Right now bitcoin can both be traded and invested in.
Also, trading is short time (following the market without prediction)
and investing is long term (not following the market with prediction)
Have started to publish my trades recently.
I really don't think you can call trading irrational. Its irrational if one is gambling, but nothing wrong with it.
The prediction behind trading is the statistics driving price action, visually represented in a chart. It is tried and true, just the same as investing is placing bets for the long term based on fundamentals of the underlying asset.
Its a misconception that charts don't work or are self fullfilling, they are a predictive tool and it's not black and white, its more like, if this: then that, else this.
Not only Charts work they work very very well !! You can see my daily Bitcoin chart !!
And they work because they are irrational, its in chaos that order emerges... but its not predictive but following and there is just money flowing if you follow it (without rationality)... just like an emotion of love its totally irrational but extremely satisfying :-)
I choose not to view charts as irrational lol -- its an equation thats all -- the people driving price are irrational. LOL
Great !
Of course its a choice and its good to know what you have chosen consciously :-)