Sunday, November 24, 2013

Back to Trading?

I'm tempted to get back to trading. This time it would be Bitcoins and Litecoins.
On some of my previous posts I've mentioned Bitcoins. Litecoins are a competitor that don't cost as much as Bitcoins.
This weekend, I was watching the price action on both of them.
It looked like there was an inverse relationship. When Bitcoins went up, Litecoins were either stable or they moved down.
If that relationship exists, a person could arbitrage or place each other against each other. Simply buying Litecoins when Bitcoins go up and reversing that when Litecoins go up and Bitcoins go down could be my path to fast wealth.
There are several problems with this form of trading:
  1.  Trading never stops. (I could trade all of the time) When would I sleep?
  2. I could lose everything. It's unlikely, at least it's safer than options. 
  3. I don't know about taxes with this. 
I don't want to mess up my job; I've done this before. I've been known to quit a job because I was making so much money by trading. Then the trading goes bad and I'm without a job. In fact that is a pattern of mine.
This time (as always) is different. At least I won't be dealing with leverage, or margins. That, basically, means using someone else's money to multiply my investments. That tends to turn out badly.
I'm picking up this posting after spending the day in Rochester, MN. I went to look at trailers. Being Sunday and in the middle of Winter, the trailer sales places were closed. I went to Barnes & Noble instead. I bought a book on foraging for food in a suburban environment. It was a wasted day. I should have been studying Spanish. At least my Bitcoins and Litecoins are moving up.
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