Quote from: rabbitcoin on June 09, 2011, 04:32:48 PM

Hi TraderTimm! thanks for your thoughts. I probably did not express myself properly - what I am trying to say that although the currency can be used to buy and sell goods and services that is not the main current use right now. If it did become a security that was used and trusted to store value instead of speculating (an ideal scenario) at that point it would change (this is what I view as the upside).

I agree with your concise summary, was also explaining the rational behind it.

I was not considering a trailing stop, just risking an amount i was more than comfortable in losing and I am not convinced if it is applicable in this sort of market (where there are dramatic price jumps both up and down as liquidity dries and relatively small orders move the market in big swings).

What do you suggest as the optimal strategy if you thought that there was a price ceiling at X and owned Y BTC?

Buying and holding a core position in bitcoin has proven to be a good strategy given the current price trends. This should be tempered with defined stop-loss points. (ie., if I lose 10% of my position I go flat and perhaps stick with mining, if possible.)

I think it is premature to expect a given price ceiling at this point. We really don't know what 1 bitcoin will be worth in the future. All we can really do is track price and act accordingly to our trading plans.