Thursday, December 5, 2013

Bitcoin Panic

Well, I panicked this morning and sold all of my cryptocurrencies at a low.
The Chinese government made an announcement that trading Bitcoins through banks would be illegal. That caused Bitcoins and all of the other cryptocurrencies to collapse. I sold everything at a bottom. It's going up now so I bought back in. I could have just left it alone and it would have come back on it's own. I over-trade. I always panic and pick bottoms to sell into. Then I don't get back in, in time to make back my losses.
That brings me to a point that I've been thinking about. Does anyone have enough information to actually trade for money?
The individual investor simply doesn't have the information sources that are available to the large investors.
When I watch Jim Cramer on CNBC, people call in with a stock pick. He usually tells them that their stock is not "best of breed" meaning that it's not the best stock in that sector. I don't know how to get the information of what stocks are "best of breed". It seems to be known on Wall Street but not on Main Street.
There are times that I don't think Jim has enough information as well, Yesterday he was complaining that the Dow went down in spite of good news. I feel that he ignored the approval of Detroit's bankruptcy. I think that is what drove everything down yesterday. It portends more state and municipal bankruptcies. That could collapse the whole "house of cards" that is the world economy.
Back in 1989 I got into trading commodities because I felt that stocks were just too hard to understand. Now that I've traded stocks I feel that all the more. But I learned that commodities are too difficult as well. I'm trying cryptocurrencies because I think I'm in ahead of the crowd. Only time will tell.Maybe there is no way that an individual investor can have enough information.
I suppose we are all damned to cleaning toilets or loading trucks for a living. There just doesn't seem to be any way out of the "working class trap". The more I try to get out the deeper I seem to fall.
Enough rambling for now.
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