Buying bitcoin? Beware.

25 בנוב׳ 2020

There are two arguments that personally keep me away from an obvious bitcoin purchase for the moment, and they are:

- It is too obvious: the bullish marketing campaign has already been inoculated in all investors like mosquitoes towards the light, and it often happens that it is precisely at that moment that there is a drop that demoralizes and takes those with less experience out of the market , enough so that those who have caused the fall, get a cheaper price.

- It is at maximums: given the natural wave structure in the prices of all financial markets, in my point of view it should never be bought at a maximum. If the market is believed to be bullish, you should always wait for a drop that offers cheaper prices. You cannot surf a wave when you are on its crest; you must mount it when it begins to form.



In case a person nevertheless wishes to operate the market, I would personally open a 1: 2 straddle ratio, the put being the two purchases, and the call 1 buying.