I’ll be posting about the world of crypto trading and information technology, I just joined so please follow me and ask for topics to be covered and I’ll do my best to author good content.
On to the topic at hand...
So I stay fairly liquid in my IRA so I can take advantage of quick in and and outs - like bad sex. With the introduction of Bitcoin Investment Trust (GBTC) anyone with a brokerage account can get in on the action of trading Bitcoin, or at least feel like they are trading Bitcoin.
About 4 months ago it dawned upon me that I can watch GDAX, tradingview.com or Binance real-time BTC/USDT as a view into the future - there is a significant delay in the valuation of an ETF, compared to a real-time view of spot trading. As I watched spot trading of Bitcoin, I noticed that the value of the equity on the stock exchange had not “caught up” with the last trade of Bitcoin on the crypto exchanges. Safe to say “OMFG! This is like seeing into the future!” crossed my mind. “This is like shooting fish in a barrel!”, I exclaimed while at the same time scaring the crap out of my dogs.
In order to safely test this “too good to be true scenario”, I decided to switch over to paper trading - practice mode in Thinkorswim - to take a 2500 share limit order long position in the ETF when Bitcoin/USD trading on the crypto exchanges rallied, sometimes waiting for a slight drop in the equity bid - greed is good after all. Within less than a minute that position was up $200 to $300 and I was out with a limited order sell of those 2500 shares - my fastest practice trade was 21 seconds, my average was 3 minutes, and the longest test was 10 days, when I made $7500 on paper.
I think you get the picture.
Disclaimer: No trade is a guarantee and the trend is not always your friend. This is not financial advice, only bet money you can afford to lose, you should almost never place a market order, and never let emotion interfere with your trades.