Bitcoin trading guide
Bitcoin exchange that I use:
Bitcoin trading topics:
- General tips for all bitcoin traders
- Bitcoin trading Q/A, indicators, trade secrets and trading style
- What is a trend reversal?
- Everyone talks about when to buy, but when do you sell?
- Reliable chart pattern, how to trade a bull flag?
- How to short, risk and analysis
- News speculation
- Learning about trading? Start with cutting losse
Bitcoin Futures trading:
- Before you start trading futures, take this test
- How to hedge your BTC against volatility? Futures contracts
- A time of reflection, ibankbitcoins as a trader part one
- Learning from false gods, ibankbitcoins as a trader part two
- My career as a trader; email to a mentor
- ibankbitcoins' weekend trading mistake
- What is the motivation behind ibankbitcoin's blog
- 2014 Reddit award for /r/bitcoinmarkets, best technical analysis
Swap positions for USD and BTC:
Mark to Market
One cancels the other.
We have OCO orders because there are more and more technical and algorithmic trading in which the entry, target and stop losses are determined before the trade.
During rapid market movement, the trader must be certain that target and stop are set already when entering. With OCO order, if target or stop loss is hit, it will cancel the other. This will avoid the scenario where a fast moving market can reverse when you haven't cancel the other order.
Price of OKcoin forward week futures in USD
All my stops are soft, ie alert at that price. I pay close attention at that point, finger on the trigger. I will see how the market reacts, possibly set a hard stop. My exit is usually within 1% of my soft stop. All live trades are recorded on twitter so there will be only be one entry and exit. Why do I not have a hard stop? There is not enough liquidity to catch instantaeously. As another trader says it best
"I don't put hard stop unless I am away and can't watch. I don't use real large order stops because it is licensed to rob you." -Modern Rock
Futures settlement shenanigans:
Futures is a derivative of bitcoin. Therefore, they affect bitcoin prices. Short term traders close this week's position and roll over to other expiry dates. This causes short term price movement that is pretty much unpredictable. Therefore, I wait until after settlement to trade. This is similar to the concept of quad witching day for stocks/futures/options expiry date.