3/2/2018 - Can I profit from Bitcoin without buying Bitcoin?
Bitcoin was at the 11,000 mark this morning so I was looking to profit from that. I know some folks who trade the actual crypto currencies but I'm trying to focus on one thing at a time so I stick to small cap equities. However, there are several ways to profit from moves in Bitcoin by buying stocks exposed to Crypto mining or blockchain. Those stock should move if BTC can hold this 11,000 move. I already have positions in MARA and GBTC and I was watching SSC, TEUM, DPW (even though I hate DWP) to name a few.
Of Course some Bank of England guy can't keep his mouth shut and causes Bitcoin to pull back from 11K.
That kind of put a damper on the Bitcoin plays for the day. I'm still holding MARA and GBTC. Historically, Crypto likes to move over the weekend. So hopefully we get BTC back above 11k and hold it. It broke back above 11k just before markets closed today. If it can hold over the weekend, I may be able to take some profits from these two stocks.
So the answer to "Can I profit from Bitcoin without buying Bitcoin?" is YES. Just not today.
Todays Activity
TVIX - 300 shares at 10.91 With Trumps Tariff nonsense sending spreading uncertainty in the market I bought TVIX when SPY started to accelerate down. I got nervous and sold for and $18 gain. I reentered TVIX at 10.84 when SPY was denied a VWAP break and started heading downward again. Ended up getting hosed on that on selling out at 10.54. In total a $69 dollar loss on 2 TVIX trades. TVIX moves around like crazy. Its waaaaay to stressful for me. I think I'm done trying to trade it. I was up both times I was in this trade. Didn't sell when I was up.
INNT - UGH. Story of my brief trading career. I spotted this when it was halted for the second time around 10:30 am It went to about $11.50. Its a super low float stock coming off of a reverse split. I've seen the moves these stocks can make. It broke down and hung around VWAP for a while. I placed a bid for 200 shares at $9.13 which matched the current high bid at the time. It never filled and 15 minutes later the stock was at $15. I'm really pissed off.
MARA and GBTC my two Bitcoin related plays ... I'm still holding them. Looking for BTC to get to 11k before I can sell for a profit.
Just the two TVIX trades today for a $69 loss. I was up both times I entered but knowing when to sell is the key. I need to work on this. The other lesson today is how I missed the trade in INNT by a few pennies. A few pennies was the difference today between a $69 loss and an $800 gain. I'm still mad.