Compare with stop loss and take profit! What is the difficulty of making profits from selling in a rising BTCFX market? And finally, at last!
Hello everyone, short positions! In the mood to profit precisely by selling at the right moments@xi10jun1here I am.
Where did the hard fork issue go, Bitcoin is rising with tremendous momentum, isn’t it?
As always, I’m sorry I can’t ride this momentum, but this time it turned into a perfect experiment.
※This column is designed so half of it can be read for free, a bundle of conscience, so to speak. Of course, if you read up to the paid portion (updated weekly, 400 yen per month, so about 80–100 yen per column), I would be very encouraged!
This week’s results (April 21, 2017 to April 27, 2017)
First as usual, here are the results. I’ll state the gains/losses first.
- This week (up to April 21, 2017) assets: 96,483 yen
- This week (up to April 27, 2017) assets: 99,179 yen
- Change: +2,696 yen
Another high price this week! But it didn’t reach 100,000 yen this week either…
Just a little more! So frustrating!
Actually, yesterday I briefly crossed 100,000 yen, but I couldn’t exit at a good price, so unrealized gains shrank. Until next week…
Or so I thought!
Yesss! I did it—double the assets! Hehehe!
Late at night, while editing this column, I achieved it!
From starting with 50,000 yen on October 30, 2016, after exactly six months (180 days), I reached 100,000 yen, double the assets!
Thanks to the colleague at GoGoJungle who asked me to write this column and to all of you who keep reading! Thank you so much, always.
The trading will continue, so I would be grateful for your continued guidance and encouragement.
The difficulty of making a profit by selling in a rising market
From here on is the main topic: making money by selling in a rising market is quite difficult.
After all, there’s no need to deliberately profit from selling in a hard way; just riding the rising market is fine.
But what if there were a peak signal, or on a longer time frame, the price staying outside the Bollinger Bands, or if bullish candles kept occurring excessively? There are indeed situations where selling has the advantage. Even with Bitcoin, it can’t just keep going up forever.
However, unfortunately, saying is easy, doing is hard…
Please observe how I cut losses
Seeing is believing: after holding a short position in a rising market, please look at how I ended up cutting losses sharply.
It may be a little hard to see, but on the lower left of the screen you can see the short position in profit unrealized.
The chart above also looks like it could drop further, so this looks promising.
But then…
Yes, it was stopped out. In a rising market, such quick reversals happen easily, and even if you hold a short position, unrealized gains shrink or you end up with a loss.
Basically, in a rising market, if your short position becomes unrealized profit even briefly, consider cashing out promptly when there’s a sudden reversal or bullish candle.
Free summary: take profits regularly! Waiting can backfire!
If you want to profit by selling in a rising market, don’t wait too long.
Since it’s mostly a correction sale, at some point it reverses and you can see rapid price increases. To avoid unnecessary losses, keep taking profits to monitor the situation.
As for the comparison of taking profits, I’ll cover it in the paid portion.
End corner 1: Let’s shop with Bitcoin!
Actually, the overseas e-commerce site "FANCY" allows you to buy products with Bitcoin! The shipping is a bit costly, but you’ll find stylish items not commonly seen in Japan.
How to use FANCY is summarized on this blog, so please refer to it.
End corner 2: How to file taxes for Bitcoin margin trading (BTCFX)?
You must also file taxes on BTCFX profits! I’ve written a blog post after confirming with the tax office by phone, so please refer to it.
※There seem to be differing opinions even among tax offices and tax accountants. Also, laws can change, which may alter how you file. Before filing, be sure to check with your local tax office or a tax professional.
※ Free content ends here. The following is detailed analysis and future outlook, so it is paid content. If you want to read more, or if you’d like to support me with donations, subscriptions are greatly appreciated! Thank you for your continued support.
