Hi there! August was not a very exciting month for traders: we’ve seen mostly sideways dynamics for most of the charts. Even E-mini S&P500 future has stopped the “everlasting” ascending trend and started to consolidate. Only a bitcoin has shown a spectacular move, soaring to $4300.
What is happening? A new bubble, the modern variation of tulipomania or a reasonable technology, which is changing the world before our eyes?
When you don’t have an answer, the best thing you can do is to ask the pros. So, I’ve decided to make an expert poll, having sent direct questions to Larry Williams, Linda Raschke, Andrea Unger, Michael Cook and other professional traders. I’ve asked them just one question:
“Is current Bitcoin rally a part of a bubble which will crash sooner or
later or a new emerging trend with promising opportunities?”
That’s what they’ve said (relevance: Aug 2017):
Veteran trader with 30+ years of trading experience. Author of the famous book “Long term secrets to short-term trading”.
Larry’s website: Ireallytrade.com
“I don’t trade them, sorry”
Veteran trader, founder of the LBRGroup, author of the famous book “Street smarts” (along with Larry Connors)
Linda’s website: http://lindaraschke.net/
The experienced trader, 3 times winner of the Robbins trading championship (2008, 2009, 2010).
Andrea’s website: http://skilledacademy.com/
“Hi Stan, we don’t really trade crypto currencies at all so we don’t have much to say about them, sorry about that!”
The experienced trader, 2 times winner of the Robbins trading (2007, 2011)
Michael doesn’t have a website, but you can listen a podcast with him here.
“Hi Stan. Apologies, I don’t really have a view on this one!
I love looking at new stuff, I just don’t have an edge on it yet. I am collecting a pile of real time data on the market and one of my analysts has data input into a testing engine, so I fully expect to have a crack at it soon, but only when I am comfortable I have something on it and not just ‘buy it because it seems to be going up’!”
Well, it’s not a representative expert poll, it’s just a couple of opinions from several pro traders. I just wanted to highlight that pros don’t trade bitcoin yet due to different reasons. One of the main reason, I suppose, is that this market is a “new” with a obvious lack of participation of many groups of traders and other market forces. It’s very dificult to trade something that you don’t fully understand. I hope this poll will help you make a conscious decision whether to trade or not cryptocurrencies.
Okay, that’s ought to do with bitcoin! In next articles, we will talk about other topics too.