Is a big disaster due to BTCFX’s rebound attempt failure? What is the cause and its mechanism?
Hi everyone, what a disaster! I’m depressed about failing the rebound trade@xi10jun1.
Bitcoin, which plummeted last week. It has finally recovered to around 270,000 to 280,000 yen, but will it ride up into the 300,000 yen range?
And what happened to my BTCFX assets?
※This column can be read for free up to halfway; it’s designed like a bundle of conscience. Of course, if you read the paid portion (updated weekly for 400 yen per month, about 80 to 100 yen per column), I would be very encouraged!
Performance for this week (May 26, 2017 to June 1, 2017)
First, as usual, the performance. I’ll announce the gains and losses first.
- Last week (until May 25, 2017) assets: 93,966 yen
- This week (until June 1, 2017) assets: 108,635 yen
- Change: +14,669 yen
Asset peak updated!
Before last week’s column update, I unexpectedly recovered to the 100,000 yen range, and then in subsequent trades I was able to secure several large gains, resulting in a new asset peak!
However, there was a long and arduous path to reach that point.
So, continuing from last week, the topic is rebound trades, but this time I’ll write about a failed rebound trade and why it failed.
Rebound trade failed!
Rebound trading is what I’m good at. This time it looked like this.
A chart often seen after a steep drop.
As it forms a bottom by repeatedly moving up and down, if you take the position correctly you can profit well.
Here is the position I took.
It’s hard to see, but the position is a buy of 275,243 yen per 1 BTC.
The stop-loss line, considering the price range movement, is 274,000 yen. Recently price ranges of 1,000 to 1,500 yen have become more common, so I gave a little leeway at the bottom line.
Now, what will happen!
Oh no! Stop-loss!
I thought I could go with the rebound trade, but the price unexpectedly broke the bottom... It then fell with momentum approaching 273,000 yen...
Free summary: Do not overestimate rebound trades
Indeed, rebound trades are very efficient, but if you misjudge the position you can incur losses like this. Do not overtrust.
However, charts like this make the bottom easy to identify, so the stop-loss line is easy to set, and conversely you can aim to profit by selling on a break below the bottom. You must read the market carefully.
By the way, why did it become a loss-cutting move? The mechanism will be explained in the paid column later!
Ending corner 1: Let's shop with Bitcoin!
Actually, on the overseas e-commerce site “FANCY,” you can purchase products using Bitcoin! It’s a little costly for shipping, but there are stylish items you won’t see in Japan!
I’ve summarized how to use FANCY on this blog, so please refer to this.
- →Explain how to create an account, register, set up, and purchase on FANCY | Investor Jun of the Yutori generation
- →How to purchase (settle) FANCY items with Bitcoin (Bitcoin) | Investor Jun of the Yutori generation
Ending corner 2: How should you file taxes for Bitcoin margin trading (BTCFX)?
BTCFX earnings must be properly declared for tax purposes! I wrote a blog post after confirming with the tax office by phone, so please refer to it.
※ Tax offices and tax accountants may have differing opinions. Also, as laws change, the method of filing may change. Before filing, be sure to check with your local tax office or a tax professional.
※ The free portion ends here. The rest is a detailed analysis and future outlook, so it is paid content. If you want to read more, of course you can subscribe as a tip, which would be very encouraging. Thank you for your continued support!
