Learning about trading bitcoin? Start with cutting losses and analysis of my recent loser.

In trading, you can only control the entry, exit and position size. Once you are in a position, price is out of your control. If your trade setup is good, your position is statistically likely to be profitable, but never guaranteed. I personally think our brain sucks shit when dealing with random variables: poker, trading, and gambling. Traders, including myself, hold on to losing positions for too long, not willing to cut loss, not willing to let it go to fight another day.

A time of self reflection, ibankbitcoin's past as a trader. Part 1

Last week when bitcoin dropped to $160, many traders lost their shirts or quit. I empathize with you all. I said I would go over a few short stories of my past.  I have personally lost fortunes trading the stock/futures market, multiple times. I would not be the person I am today if I hadn't paid the most expensive tuition of all.

First, I can tell you I am no different than any one of you. I understand the feeling of losing it all, it hurts so much that I've adapted and become more disciplined as a trader. So here is my first bust of the series.

Bitcoin market update 9/30/2014

Market is at the new lows, forming what looks like a descending triangle. Naturally this is bearish which is true for any consolidation at new lows. For the bull argument, we are barely below the previous low. What I am trying to say is that this zone is where a large number of long’s stops are at. Take a look at the past few times when market made new lows, the next day is a big crash on strong volume. As bearish as it is, a strange behavior.

Bitcoin update and trade analysis 9/18/2014

This update will have 2 parts, first is the market update, and second is about analysis of my recent trade and mistakes.

Bitcoin market update:

Since yesterday, market has been sliding lower with above average volume, but the volume is much lower than the first wave down. As I speak, we are retesting the lows of the previous low. However, this time, price has been consolidating here instead of the gradual climb from before. Looking at the 4 hour chart, we have broken below the descending triangle and that is bearish even at these oversold levels.