Shorting Bitcoin.....How To Do It?
Well, Bitcoin is beginning to crumble as I suspected it would. The bigger problem is its incredible volatility where you can make good money if you have the direction right but not worth the risk with a smaller account.
I went short at the 38 Fib area. A little above my target but I have been adding to the shorts as it falls. That is what you do when you get it right. When you get it wrong you get out. It is that simple. You never add to your losers unless you are playing my signal which is designed that way.
There was no more reason for it to be around 14000 than there was when it was at 3000. Oh sure I know, the currency bubble is back and ready to ramp higher. No, it isn't. Unless you are prepared to abandon sound currencies for computer code. I personally am not at that stage yet although I could be there if it ever gets more solid as a store of value. It is still a money laundering coin and a coin for gamblers. Nothing more.
You may wonder how I can say that. Glad you asked.
In the past ten years (but more likely to 50 years) there has been an incredible amount of credit released into the markets. This hot money looks for places to be parked. It looks for the highest returns and it seems to be everywhere these days. When central banks released the lynchpin of some of the greatest money printing that the world has ever seen they really didn't know what was going to happen.
Well now we know.
The money has circulated the globe many times blowing bubbles everywhere. Especially in the housing markets which is what people understand best. There is not an area likely in the world that has not seen prices skyrocket since 2009. This is NOT supply and demand. This is hot money looking for places to be parked. I am talking about cartels, money launderers, offshore lenders and a host of other people all getting rich off the easy credit. Except there is one problem.
When does enough become enough?
I think that we have long since past this point. For the same reason that the rich get richer the less than credible characters also get richer in this sort of free for all environment. Yes, some good things can happen from all this but for the most part, people are generally greedy. They think that their money makes them something and so they seek more of it. A deranged sort of sickness that comes from having too much of it. They don't look to spread it around but rather they look to grown the pile. Hence they and the people that lend it continue to blow bubbles.
Is it sustainable?
Who knows. I don't know how long the insanity will continue any more than I know for sure how low or high Bitcoin will go.
This at some point I think will contract. It is really nothing more than a boondoggle. Nothing is being produced and no one is providing what the markets really need. That is a fair value measurement tool. There is no way to know what anything is worth under fair market conditions at the moment and this is a problem.
For example, I watch the price of my home double, triple and now go over six times what we originally paid for it. Yes, I live in a nice area. Yes, there is a supply a demand issue there. However, does it bear a 600% rise in value over the past fifteen years?
No, it does not.
Anyway to make a long story short. I am short Bitcoin. I am not buying into this false rally. The way to control your account is through using intelligent leverage. Small positions right. Cheers!
I went short at the 38 Fib area. A little above my target but I have been adding to the shorts as it falls. That is what you do when you get it right. When you get it wrong you get out. It is that simple. You never add to your losers unless you are playing my signal which is designed that way.
There was no more reason for it to be around 14000 than there was when it was at 3000. Oh sure I know, the currency bubble is back and ready to ramp higher. No, it isn't. Unless you are prepared to abandon sound currencies for computer code. I personally am not at that stage yet although I could be there if it ever gets more solid as a store of value. It is still a money laundering coin and a coin for gamblers. Nothing more.
You may wonder how I can say that. Glad you asked.
In the past ten years (but more likely to 50 years) there has been an incredible amount of credit released into the markets. This hot money looks for places to be parked. It looks for the highest returns and it seems to be everywhere these days. When central banks released the lynchpin of some of the greatest money printing that the world has ever seen they really didn't know what was going to happen.
Well now we know.
The money has circulated the globe many times blowing bubbles everywhere. Especially in the housing markets which is what people understand best. There is not an area likely in the world that has not seen prices skyrocket since 2009. This is NOT supply and demand. This is hot money looking for places to be parked. I am talking about cartels, money launderers, offshore lenders and a host of other people all getting rich off the easy credit. Except there is one problem.
When does enough become enough?
I think that we have long since past this point. For the same reason that the rich get richer the less than credible characters also get richer in this sort of free for all environment. Yes, some good things can happen from all this but for the most part, people are generally greedy. They think that their money makes them something and so they seek more of it. A deranged sort of sickness that comes from having too much of it. They don't look to spread it around but rather they look to grown the pile. Hence they and the people that lend it continue to blow bubbles.
Is it sustainable?
Who knows. I don't know how long the insanity will continue any more than I know for sure how low or high Bitcoin will go.
This at some point I think will contract. It is really nothing more than a boondoggle. Nothing is being produced and no one is providing what the markets really need. That is a fair value measurement tool. There is no way to know what anything is worth under fair market conditions at the moment and this is a problem.
For example, I watch the price of my home double, triple and now go over six times what we originally paid for it. Yes, I live in a nice area. Yes, there is a supply a demand issue there. However, does it bear a 600% rise in value over the past fifteen years?
No, it does not.
Anyway to make a long story short. I am short Bitcoin. I am not buying into this false rally. The way to control your account is through using intelligent leverage. Small positions right. Cheers!
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