'''
I guess the problem for me with TA is that adversarial markets are a zero sum game, so there's no such thing as a long term trading strategy. For any successful trading strategy you find, there's a way to counter that trading strategy so that they make the money instead.
To take an example that someone posted today: If the market usually pops when the 50 day moving average crosses the 3 day moving average, then you'd naturally buy in anticipation of that event and sell afterwards. But when everyone starts doing that, then actually you want to buy before everyone else and sell once they start buying. And so on, and so forth.
Worse, because Bitcoin is illiquid, unregulated, and small cap, the actions of a few big players can have a massive impact on the price far outweighing normal market dynamics. All exchanges have been beset by scandals, eg front running, bots, trading on their own order book, etc. So you're not just playing against other players you're playing against the house.
If you're a day trader using TA strategies you found on the internet, you may be picking up pennies in front of a steam roller [1]. It works while it works and then you lose your shirt. For most people posting here they are kidding themselves to think they are doing anything more than gambling.
[1] [[link]2
'''
Author: /u/aidanlister
1: seekingal*ha.*o*/a*ti*le/408*775*pic*in*-n*cke*s-f*o*t-steam*r*l*e*
2: *eek**galpha.com/a*t*cl**40*3*75*pi**ing-nickels-f*ont*s*eam-rol*er]**1
Unknown links are censored to prevent spreading illicit content.
No comments:
Post a Comment