Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
Happy 2017 to everyone, I think the next step is the 1050$ if it breaks i don't have any idea what would be the next stop of this rally, maybe some old bitcoiners have an idea 
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?I think that we need to look at the current ATH as the next stop and a potential resistance point...
There is considerable potential that the current ATH would not be a resistance point because we are already so close to it, but I think that we still need to see how this price range plays out between $1060 and $1180
Seems to be plausible, i'm very cautious because it's my first time as a bitcoiner as i experience a rally a these prices, so thanks for your thoughts
If you are nervous about retaining value with your BTC holdings, you can sell a little bit on the way up. Usually you do not want to sell too much because you could end up with a bunch of fiat and a lacking in BTC.
Everyone is different regarding how they will do it, but I tend to sell 1% to 2% of my BTC holdings every $100 price rise of BTC in about every $10 to $15 increments (in other words staggered in both directions - up and down), and then I buy back when BTC prices go back down... therefore, on average I end up selling less than 1% for every $100 (and my BTC holdings grow overall with the same amount of investment, more or less).
I started this selling strategy at a bit over $250 (but my selling between $250 and about $400 was an even smaller percentage of my BTC holdings because my BTC portfolio was then in the red) and today, I still have nearly 92% of my BTC holdings in BTC and the other 8% in fiat.
Some kind of a strategy of taking profits (even small amounts) can help you to be less nervous during BTC volatile periods (which are almost inevitable) but I think that even with extensive practice a lot of us get nervous no matter what when the price becomes really volatile (especially when it goes down), so we have to figure out ways to hedge and to safeguard some of our nervousness that are tailored to our own situations.
This is an excellent strategy, imho, because you actually profit from volatility. IOW, a volatile price rise from A to B will leave you richer than a steady rise from A to B. You (the investor) win, at the expense of the speculators.
It actually seems to play out like that in practice, too, as long as you stick to your guns and continue to stagger your bets in both directions.... It probably works at bringing down some of the overall volatility too, if everyone were to engage in such a practice.
If you assume price = constant + superimposed sinusoidal curve, with the amplitude of the curve big enough to trigger buying and selling, then by your method, you repeatedly buy low, sell high, over and over again. Which means you make money, assuming the spread and transaction costs are less than what you earn from buying low and selling high.
Any curve can be represented as a sum of sinusoidal curves, i.e. a Fourier series. Therefore, it becomes mathematically provable that your method, if properly implemented, will cause you to benefit from volatility.