Post
Topic
Board Economics
Re: Bitcoin trading strategy
by
BTCevo
on 07/06/2015, 00:07:41 UTC
There are two techniques commonly used by day traders to increase their profits from market movements. Leverage, or margin trading, means borrowing money on a short-term basis to speculate on the price of bitcoin. The loan is paid back when you exit the position. For example:

The price of bitcoin is $500. You borrow $5,000 to buy 10 bitcoins.
The price of bitcoin rises to $550. You sell your 10 bitcoins for a total of $5,500.
You pay back the loan of $5,000, plus interest (say, $50).
Profit: $450, on a price movement of $50.
Of course, you can also lose a lot of money this way: if the price goes down instead of up, you will lose ten times the price movement. This is what makes margin trading so risky – it is potentially extremely profitable, but can also be very costly.

Are you really believe that you will get $50 per bitcoin until your payment time is up? And now the price of bitcoin is just around $224-$225 so I dont think the price will hit until $274-$275 so it is pointless to do that kind of trick


The best  strategy is buying now and never sell it until the price going to $10000. You can't think the price is only $200+, right?
It might happen then you really never sell then. So you have nothing from your investment.
On other hand you can earn from bitcoin price movements.

Are you sure that this might happen? $10,000 is that making sense? May be around $1,000 I still believe it but $10,000 I still can't believe it what will happen if the price has going there