RE: Bitcoin Has Gone Straight Bananas!
This market is certainly defying all odds in the short term but I still eye with a certain level of suspicion. There are just so many factors at play here. I do believe the predominant factor at play is mania and frenzy. I think that a great many people got onboarded to BitCoin over Thanksgiving dinner. Not wanting to be the odd duck out, seem unsavvy or unable to be financially successful or give their spouse any more reason to bang their rich brother in law, a lot of inexperienced men jumped into the market
We are in a greed phase at the moment where everyone is buying because it's going up and for no other reason. They see it as safe as they are earning every day, therefore there is no reason to study the charts.. Trading is easy, I'm gonna be a billionaire in no time. Sadly, as the price goes up they will get in deeper and deeper and deeper.. and when it goes down to correct 40,50,60 percent they will have no idea what is going on. Instead of selling at the top they will ride it right into the dirt; only selling at the last minute, when the pain is to great just to watch it begin retracing.. But by then their capital is all gone.
Bitcoin is great from the standpoint of a professional trader or someone like me that makes their yearly wage doing this and nothing else. But it is a dangerous trap for those that are just throwing money at it without taking the time to actually invest in themselves and learn market dynamics. This is the same crowd that thinks googling Bitcoin makes them a trading expert..
I also see huge potential for Bitcoin to get shorted right into the dirt once the futures market comes on line in 4 days. Bitcoin cannot be shorted in any appreciable quantity at the moment save exchanges whose volume is to low to make it matter in the big picture. Once Billions of dollars in professional traders come online, hedge funds, money managers etc. they are going use technical analysis to make decisions will will quickly reverse the irrational behavior we are observing. Sadly a lot of people will get hurt due to their fear of selling and realizing a loss.. But on a positive, big money will bring stability and lower long term volatility.
https://steemit.com/bitcoin/@pawsdog/12-6-2017-the-market-view-and-trading-outlook
Yup - I'm just riding the wave waiting for the next pullback...basically every pullback of 20% or more has been a quick profitable trade. I'm holding a core position for it we ever to get to 40k, etc. but trade around it a bit so I can free roll it.
Got put the 10+ years trading experience to use somewhat! :-)
You apply to the same theory of thought I do then. That being that it takes 10 years to become an expert. http://www.selfgrowth.com/articles/10-Year_Rule_to_Become_an_Expert.html
You just see so many patterns over time, so many subtle nuances, etc. that you can begin to read the market like the matrix. Being able to even have a basic understanding and not get whip sawed around takes time. But to be able to see beyond the hype, develop discipline etc. take time and getting burned here and there (paid education). Only experience can make you a good trader in the long run.. I feel kinda sad for the throw money in late to the game crowd at the moment. Especially as I know they are the ones that won't be able to let go when it goes down. They figure if they don't sell, it's not really a loss..