dreamspark
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February 18, 2014, 04:30:08 PM

Call me a fool but I couldn't resist buying some goxBTC at .5. Be greedy when others are fearful and all that...

It's not foolish at all, provided you can live with the probable loss. It's like betting a number on the roulette wheel that pays off 50 to 1.

Yeah I can definately take the loss. I only spent 10btc which is a smallish percentage of my 'play stash'.

The way I see it I would have to make a long series of really good trades to double up in the same way and there would be much much more risk involved. While Gox running off with the money is a distinct possibility I think the risk of this happening is far lower than 50-50.

The numbers just make sense really.

So we agree the risk/reward ratio is low enough. I think there is a greater than 50% chance you'll lose, but if you win, you'll more than double up. The problem is that this market moves so quickly that by the time you realize your profits, you may miss out on several other opportunities. Range trading to scoop up 2% per swing seems boring, but it's a guaranteed profit if you don't care if you're either fiat or BTC heavy when price moves to a new range.

Yeah I see where your coming from. Range trading can bite you as well though if the market suddenly takes off and your left on the wrong side of a short- what would your range have been over the last week for instance? And what do you do when your trading for 2% profits and the market moves 10% the other way eating the last 5 trades you made? I dont see myself as missing other oppurtunities as I have enough fiat/btc to make any moves I may want to make in the mean time. As you can can probably tell I trade for btc profits rather than fiat. I personally put it about 30% Ill lose but only time will tell  Cheesy