Isn't trading usually based on following the trend and not on hype speculations?
True , but hype is one of the trigger that could either increase or decrease the price of it, following the hype and execute your order on the right time could be a blessing if you are a daily trader. Basically good news regarding BTC is a good hype for the price to increase , though we dont see any price moving up lately
Another example would be the news of KNCminer coins finally moving, I see the price deceasing after the news is leak . Hype ? Perhaps or people having the fear that the price might get alot more lower if they dump the coins
I think that it is often not the actual effect (what is being hyped) that causes a change in price, but the hype itself. Of course, certain effects can influence bitcoin in one way or the other, but this is not always the case. For example, people were expecting that wider scale adoption of bitcoins will lead to higher prices. Even though some larger companies do accept BTC as payment, we didn't see the price shoot up to crazy highs, it's just floating around sort of the same levels, +/- 50$.
Also, lot of people try to influence the market with their suggestions, (in their favour) so you have to listen selectively, which can be hard.
Another way of hyping, this can be seen alot on btc-e trollbox. Basically that exchanger has a lot of trolls that will keep on typing buy or sell. They are doing it for their own purposes, getting someone that has no knowledge about whats going on to fullfill their order in the market
Exactly what I meant. The BTC-e trollbox is the perfect example, although I have seen it elsewhere too. One wants to sell his coins, so of course everyone has to buy, because the price will skyrocket. And at this point I am not sure who could be trusted as a source of information. Principally, anyone could be giving you false advices intentionally so that he/she has monetary benefits.
I have tried following a strategy out of the box, but it didn't work. Even though it should be working, based on maths etc. There is a lot of experimenting involved.
Dont, follow the trend unless you are whale that you cant got against the trend or either goes out of the box.
When I say tried strategies, I mean running simulated trading, aka tests. But the fact is, based on maths and algorithms such as EMA and more advanced, one should be able to follow the trend and always make profit. In theory. However, in practice, selling is not instantaneous and the prices change so quickly that even a small delay can throw calculations of balance. Plus, of course, there is a trading fee as well that slashes the already small profits. More importantly, I could make a profit if I sold at e.g. 265$, however the sole fact that I am selling reduces the prices and my margin is gone.