As most of you know, I am from the United States but have been living in Chile with my wife for about 20 years. And while Chile is more advanced than most of you might think, I don’t believe Chile would be the first place to get information on something like Bitcoin. That being said, I have been seeing Bitcoin mentioned in newspapers, hearing about Bitcoin on the radio and seeing reports about Bitcoin on the news.
So, I am pretty confident Bitcoin is a hot topic, regardless of where you are in the world.
Unfortunately, most of the information I have been coming in contact with is about Bitcoin’s value as an investment. And when they are talking about Bitcoin as an investment, what they are basically talking about is BUYING and HOLDING Bitcoin. They are talking about buying a bunch of Bitcoin, storing in your Bitcoin Wallet and waiting for the price to rise over the long term.
I’ve even heard reports of people mortgaging their house in order to do this. Crazy.
Of course, since Bitcoin’s price has risen so fast and so far lately, the conversation automatically turns to the Bitcoin market being in a BUBBLE. And since the Bitcoin market is so volatile, every time there is a correction and the price drops, the doom reports come out in droves.
In my opinion, the huge amount of information flooding the news is creating two very dangerous emotions…
- FEAR: People who own Bitcoin are afraid Bitcoin could crash and they will lose their entire investment.
- GREED: People who don’t own Bitcoin want to get involved and are willing to do stupid things in order not to “miss out”.
And as traders, we know FEAR and GREED are not emotions you want to be basing your trading decisions on. And therefore, this is a very dangerous situation indeed.
So, let’s bring back some sanity to the conversation.
As Forex traders, we are not buying a truck load of US Dollars, Great British Pounds, EUROS or Yen and storing it in our garages waiting for price to rise so we can sell the truck load of currency back at a later date for profit. That would be absurd. (But that is exactly what people are talking about in the Bitcoin market).
As TRADERS, we take a different approach…
- We use a Broker
- We control risk by using a percentage of our account for transactions
- We use a stop loss
- We can eliminate risk if price goes in our favor by trailing our stop loss
- We can set a target
- And most importantly, we can use technical analysis on our charts to find the best price to buy or sell with the highest probability of success
Now, this is a much better scenario for profiting with Bitcoin than simply buying a bunch of Bitcoin and storing it in our Bitcoin wallets. There is much more control involved. And there is a much better probability you will be profitable TRADING the Bitcoin market than just buying and holding.
Now here is the really great news…
When I applied some of my trading strategies to the Bitcoin vs. US Dollar charts, they identified trading opportunities with an excellent risk to reward ratio. I’m talking about trades, that when traded according to the rules, yielded winning trades with a risk to reward of 1:4, 1:6 and even 1:10. Yes, there are trades where you can win 10 TIMES the amount risked.
Now, compared to the Forex market… does this sound like an excellent opportunity? You bet it does. And keep in mind, these types of profits can be made by simply following the signals given in the Member’s Area.
- Trades are triggered by technical analysis where we look to buy low and sell high, or sell high and buy low
- We limit risk by using a stop loss
- We control our risk with money management
- We eliminate risk when things go our way by trailing our stop loss and locking in profit
- And we set a take profit or 10 TIMES our risk for huge profit potential
Doesn’t this sound like a more SANE way to participate in the Bitcoin market looking for profits? Isn’t this a better plan than just buying and holding Bitcoin? I sure think it is.
Now, for most of you, trading Bitcoin is going to be something new. And with anything new there is a certain level of resistance. But, in my opinion, this is an opportunity that is too good to ignore.
The good news is, in order to use the Bitcoin Signals, there are no changes to your trading routine. Signals are given out at the same time as all the other signals (5-5:30 PM New York Time). In order to follow the signals, all you need to do is login to the site around trading time, see if there is anything to do and duplicate what we do on your own accounts.
In the next lecture, I want to go over some Broker options.