Quote from: BitSlut69 on April 24, 2013, 03:36:33 PM

Quote from: jzcjca00 on April 24, 2013, 02:36:28 PM

I believe that the price is being manipulated by people who don't care about the long-term success of Bitcoin. I believe they will continue to induce wild and unexpected runs and crashes in order to create panic buying near the top and panic selling near the bottom. They scoff at the true believers as they rake in their profits.

I believe the only way to accurately call the tops and bottoms would be to be priivy to their plans.

I also believe it is possible to profit from their artificial volatility by gradually selling all the way up, and using that fiat to back buy orders at lower prices on the way back down. For example, sell at $160 and place a buy order for slightly more coins at $150. Repeat every few points.

In order to succeed at this strategy, you must not buy in a panic when it seems the price will never crash again, and not cancel your buy orders in a panic when it all seems to be falling apart. Their goal is to make you panic and lose money. You have to be smarter than they think you are.

By day trading like that you are enabling the manipulators you speak of. Just hold your coins and you are keeping the price more stable.

I don't understand. I don't have enough resources to have a major impact on the price, but logically it would seem to me that the little trades I made today should have served to slightly reduce volatility, if anything.

I've been selling 1 BTC for every three points rise in price. After the sell orders execute, I place buy orders 20 points lower than my sell points. When those buys execute, I place the original sell orders over again.

It would seem to me that my sells at 129 through 165 should have slightly helped to cool the rally, and that my repurchases at 142 and 145 would have helped slow the correction.

How can selling during a rally and repurchasing during a correction increase the volatility? Please explain.

Whether it's caused by market manipulators or some natural forces unknown to me, the volatility in Bitcoin seems to be here to stay. I would think the true believers would be eager to use their coins to reduce the volatility, especially when you can turn a little profit in the process!