Today's topic, I'm trying to talk about mentality. As the previous 5 episodes of our crypto trading course, we've been through a series of brain storming on buying the denominator, if you noticed I have always been encouraging to think ONLY crypto when doing crypto trading. The amount of USD has nothing to do with your crypto hodling.
Source from Pixabay
I'm very happy, finally I've got some feedback these few days ever since I started posting under Project Hope, and I really thankful to the mods and admins there for their curation. I understand that I said to you on Episode 5 is probably going to be the last post. So I give every "technical" bit of the trading method on that one post. However, there are some on going conversation of why do I do that. So, today's sequel is to answer in terms of psychology part of the "trading".
Source from Pinterest
Here, have a look at the meme and it sums it all for why would we have the past 5 episodes, and now 6. Market is repeatedly doing what it's supposed to do, all by itself. Whether you like it or not, we're going to missed a lots of opportunity. Let us break down the above meme and study how people react to price action shall we?
- The first pair of graph stating the trendline of previous low, is broken, and now market price is rejecting from previous support. So, it's a good chance to go short with it. Market may continue to go down.
- Few hours later, the previous low were tested a few times, broken and make a rally. Anyone who is thinking to short from the reject is now on a great loss.
- When you zoom out the chart and take a closer look at where are we currently standing... I only have one word for you. Shit.
Ok. That's funny when you don't invest into any other financial tools, but you know it's not funny when you have a high stake into certain certain stocks. The above charts are from precious commodities, WTI oil price. Note that they don't tell you the denominator is supposed to be the USD. They make you think the PRODUCT, that crude oil is the denominator, they make you use USD to buy that crude oil. So you have always been measuring VALUE based on USD instead of the product itself! You will lose your head thinking of when is the bottom of the crude price. But one thing for sure, they have always fixed the USD on the left side, and product on the right side.
Source from Tradingview
My apologies I couldn't find hive/hbd chart for you, but a steem/sbd chart will work just fine. You see, there's no way we can guess how far a crypto can fall(out of sky), and there's no way we can guess when is the crypto going to "moon", especially when you put a DOLLAR into the denominator. You will start to wonder when can I cash out and when can I put my money in. And in the end, you get yourself stuck buying the top and selling at the bottom. That's because? Back to Episode 5, no high is higher, and no low is lower. There is always a better bargain to buy from, why not save some cash and wait for the next low. No high is higher? I know bitcoin is at 10k now, do you want to sell all of them? We all know what happened that year right?
Once again, this is my #hive wallet. In 2 days, market has been through from 0.20 all the way to 0.40 and come all the way down to 0.15. Did you catch any of the action? We will tentatively treat this as the end of discussion until I find someone interested to know more of how this kind of blind trading can bring extra wealth in just using 5 minutes of my time. So much faster than composing this post that took me hours to find examples and making screenshots. I will make a spreadsheet to explain this is just a mathematics game. As @joelsegovia mentioned he noticed I've been bias trying to hold more HIVE, but without HBD it's impossible for me to trade. Well, who has with the current situation at 10% debts? So, what am I doing is? Buy HBD with little amount of HIVE.
Previous Episodes
Part 5 here
Part 4 here
Part 3 here
Part 2 here
Part 1 here
Good information brother.
Thanks
After reading your last post I actually swap HIVE with HBD. And I get about 12 HIVE for 2.6 HBD. And I'm happy about it.
If you follow the way I parked at 0.15, you could have swapped for 17.333HIVE already. Stay home, stay safe. Have a good day.😃
Damn I missed that point!
@tipu curate
Upvoted 👌 (Mana: 7/28)
So sweet of you 🥰 !tip
Some Boring Lockdown Life@davidke20 wrote lately about: Feel free to follow @davidke20 if you like it :)
Sending tips with @tipU - how to guide.
🎁 Hi @crypto.piotr! You have received 0.1 HIVE tip from @davidke20!So let's see if I got this right, you are betting for lower Hive/HBD, that's why you sell Hive at the current 0.19ish ratio of Hive/HBD to have some HBD to sell when it falls lower than 0.19
Ok, but please explain to me how we can get much lower than that if we have the haircut function preventing the chain itself to convert HBD to Hive to a ratio lower than 0.2?
(I am as very interested in these massive hits the Hive price will be suffering until the Korean pockets are done dumping all the way down to 500 satoshis at least.. if this place can survive that I'm going to make averaged purchases on the deeps)
Ok don't confuse yourself further. Put it this way, the 0.2 is only a ratio. There may be one day all of this going to be reset to 1:1 or turning the other way round. But if you're a cost averaging investor, what did you miss in between? You have some in 0.15, you have some at 0.30, and even more at later stage 1.00 because you're selling all your hive for HBD.
So, it can't go lower. Which means they don't print HBD anymore, so there's no no way it can fall below that value. Do I understand your question correctly? Let's put an example of current hive price at 0.10 and hive is 0.50, that is exactly 0.200 correct? Since you don't print HBD, what happened to HBD?
What WHAT?!!!! That doesn't make sense! Dude, nobody is here to make sense. As I told you, dollar is an evil. You know better than me why Venezuela keep on failing their banking currencIES, because they can't stop printing new notes. And worst is, instead of printing new notes, now they printing more zeroes to the notes.
I don't know who are the Koreans that is dumping. Satoshi or not, that is only a way to measure to the bytes. You can have zinga tenga trillion satoshis sitting there but nobody buy it, it will still worth 0.000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000001 USD/satoshi or probably less.
Source from customized chart with TradingView
Here, I will make this to the public later when I make a post. I always like to see your comment when I'm writing about trading. Your questions actually inspire me to write on the next topic 🤣 HIVE/STEEM. What if STEEM is the denominator, and HIVE is the numerator? Again super mind fucked, because people who are pro HIVE will always "think" HIVE is the denominator, same goes to people in STEEM.
Source from customized chart with TradingView
Let's flip the table, HIVE as the denominator. WOW!!! 1 steem is actually 1.46 hive now! Overly corrupted by the conventional banker thinking aren't we? Take the dollars out of the equation, the most important is how much crypto do we own. Which side of the crypto did we owned. The ultimate winner is not BTC that was once worth 19k. You can have 0.000001BTC and hodl it all the way there, but did you sell it?
I will try to come up with a table of averaging. So you can see why am I NOT actually bias.
The Koreans dumping can be tracked easily, they move funds from Koreans exchanges that supported the airdrop to bittrex, so keeping an eye on the bittrex wallet can give you a hint when the dumps are coming.
I think I understand what you mean, even when the debt ratio triggers the haircut function you still can have an agressive buyer pumping the HBD and this will make it stronger against Hive. When I was writing this comment there were the rates between Hive/HBD
You have a 0.177 ratio and this can go upwards of downwards... One good thing is that Hive will be very dynamic the last few months because 孙哥 will most likely try to keep Hive as low as possible while pumping Steem as high as possible... On the other hand Hive whales and other potential new investors Will try to defend Hive to avoid its price being burried because it's as you say lol, they cannot move the eye from the USD denominator
Because of your posts I actually started to set some limit orders and currently am trying to get the catch of it... It's really good being able to start learning this kind of stuff and have a place to put them into practice
Some orders have already been filled... I'll try to figure out a way to grab more SBD to set low limit orders on Steem internal market as well. I'll keep an eye on your next post about this
Kind regards my friend
Very good. Steem is on the other hand, heading to the 0.15 ratio now. Unless you have some SBD already, other wise move your Steem down to 0.20 area and get ready to catch some SBD there. Once captured the 0.20, park the captured SBD and set them in 0.15 for more STEEM 😁 Fuck the evil dollar.
On the side note, 孫老闆 will have no eye see what is happening in HIVE. Let's not forget they have a lots of STEEM in BINANCE, so they probably have a bunch of HIVE in hand too. Whichever of them are right, I have all the nets on both STEEM and HIVE network to capture all of the movements. Muahahahaha
下几个月我们有机硅得到很多HIVE和STEEM，在我祖国我们有一句话："on time of crisis there are those who cry and there are those who sell handkerchiefs"
Now that I'm using my imagination on you speaking Spanish to me lol. I love how you put it, Chinese old saying goes, 有危机就会有转机. As in "For any crisis, there will be a turning point". And turning point meaning of doing the opposite to be prosper.
When everybody is selling, we'll be waiting at the bottom to buy them back.
如果你对外国语言有兴趣我能教你西语。。。稍等吧，你多大？妈呀！我现在不知道怎么叫你？我二十九岁。。。那可是我应该用您或者大卫兄弟？我不太清楚
Hello friend @davidke20, great work of investigation friend, very useful for everyone.
Given all this, we hope that these assets will revalue and can escalate in price, is what we all yearn for.
Thank you very much. This is at least I can help the community.