Overtrading? Bitcoin market update for Monday 10-20-2014
I've covered my short at 394 yesterday at a small profit, market has retraced back since. I honestly cannot tell which way Bitcoin will go.
Trend obviously says up in the short term since we have bottomed two weeks ago. However looking at the amount of bfx USD and BTC swaps, USD has increased by a bit. But the number of BTC swaps is at 12K! Speculators are increasing their bets on both sides. As I have said it before, one side is wrong, but I don't know which. I am going to let this play itself out until new opportunities present.
One of my known flaws is jumping in and out of positions quickly even when there is no real statistical edge. I used to treat trading like work, x amount of time = x amount of dollars. Hence I have the expectation to constant try to find opportunities that doesn't exist. In reality, there is only opportunity when the market gives it to you (Doesn’t apply to HFT).
Many voted asking me to post more. I try my best to post on my free time outside of my 45 hours work week. My bitcoin blog and here will always be free. What do you guys think? Leave a comment below.