Cryptocurrency Trading. What Side Will You Be On?

Posted in: Cryptocurrencies, Trading Article, Trading News

With the massive run in Bitcoin, Netpicks has had some inquiries about cryptocurrency trading and if it is something that we will take a look at for our Inner Circle members.

Nobody can deny the popularity of cryptocurrencies especially after seeing Bitcoin run upwards for $3000 this week topping the $11000 water mark.

Just yesterday afternoon, I was talking to the founder of Netpicks about this weeks run up in price.  I was very clear that this was exhaustion in a highly overbought market and people were trying to get on the train that eventually pulled back into the station.

Buying at these levels is not the smartest play and without a clear cut trading strategy to take part in Bitcoin trading (or other cryptocurrencies) you will be the one who buys the high.


Volume (estimated to be over $10 billion) was so high – emotions were so high – that the Bitcoin price ended up dropping about 20% to under $10000.  Reports are that outages also occurred on the major cryptocurrency exchanges.

When a market extends as fast as Bitcoin did this week, smart traders take the gift of rapid price expansion, book their profits, and wait for another opportunity.

There’s the difference.  

Smart traders understood that the rapid price expansion was the time for profits while others without a plan, without experience, started buying highs.


Is Cryptocurrency A Fad?

I doubt that Satoshi Nakamoto, the inventor of Bitcoin who just wanted to build a decentralized digital cash system , ever considered his invention would take off as it has.  The truth is that many people, many institutions, are tired of the centralized global currency system that is in place.

We’ve seen this move away from a fiat-currency system for some time now and the disparity between the top and bottom of the money chain is great.  Those who don’t “have” probably never will.

This concentration of wealth has troubled society for decades.  With cryptocurrency, the banks and Fed will no longer have a stranglehold on the money supply.

With CME and NASDAQ looking at offering Bitcoin futures, this is a sign that more “big money” is about to enter this market.


That Creates Opportunity

Opportunity where you can be a part of and the “ground floor” opportunity will not be around for long.

I believe that Brad Mills was correct when he said:  “If the trend continues, the average person will not be able to afford to purchase one whole bitcoin in 2 years.”

Bitcoin is not the only cryptocurrency in town.  We also have Ethereum, Dash and Lite coin plus new cryptocurrencies are born (and perish) every month.  Pump and dumps on new cryptocurrencies happen just as it does when trading penny stocks.

This is why having a trading strategy is vital.

Just like penny stock traders, pump and dump has people buying in on the hype while those who started at the bottom, cash out on the price rise.  Those that bought in early end up in profits.  Those coming in late on “fake enthusiasm” end up with losses.

But just like in the stock market, there are those names that are here to stay.


Netpicks Trading System and Bitcoin

I asked our system developer to send me over a test of our popular and effective trading strategy known as Counterpunch Trader with Bitcoin.

With entry, exits, stops and even trailing stops printed on the chart, taking advantage of the cryptocurrency trading opportunity is simple.


This is the daily chart and from September to almost the end of November, and you can see that just following the trading signals ended with a profitable few months.  These are wonderful swing trades for those that work a full time job and can’t sit and trade during the day.

Total profit from swing trading Bitcoin?  $12363.00

What if you can day trade?

This is the 30 minute chart and although volatility was extremely high, our trading system allowed you to profit from the moves


Let me repeat that this is a test because at Netpicks, we never just jump into the “next best thing”.  You must ensure that your trading system and trading plans are in place and tested before every committing real money.  That is something that our Inner Circle trading members hear from us time and time again especially in our trading room.

The success our Inner Circle members have had with virtually every market we cover, does not look to end when we introduce our trading plans for cryptocurrency trading.


Just The Beginning For Crypto Traders

As mentioned before, when institutional money starts to filter through the cryptocurrency market, I think we are going to see the beginning of an opportunity that will enrich many lives.

Where do you stand?

Let me circle back to the conversation I had with the Netpicks owner when he mentioned the “mining opportunity” from a few years ago.

bitcoin mining

The opportunity for cryptocurrency trading, basically in its infancy, could be upon us.  Do you want to look back a few years from now and think of the opportunity that you missed?

Come See How We Trade


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Trader at Netpicks
Shane his trading journey in 2005, became a Netpicks customer in 2008 needing structure in his trading approach. His focus is on the technical side of trading filtering in a macro overview and credits a handful of traders that have heavily influenced his relaxed approach to trading. Shane started day trading Forex but has since transitioned to a swing/position focus in most markets including commodities and futures. This has allowed less time in front of the computer without an adverse affect on returns.

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