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I think all financial journalists should be required to trade real money for a year. Then we'll stop seeing these bullshit causations. Bitcoin's today drop wa
by 21 10y ago
I think all financial journalists should be required to trade real money for a year.
Then we'll stop seeing these bullshit causations.
Bitcoin's today drop was nothing else than a normal reaction after the incredible recent runup.
If gold surged today instead of the yuan, the article would have stated that gold was the reason.
I remember a day during the hectic days of the 2008 meltdown, when in a single day DOW dropped 5%, but ended 5% up (thus a 10% swing). In that day I've seen two articles in the same source, with titles like this "Dow plunges on Fed decision", later "Dow surges on (same) Fed decision", instead of a more realistic "the market is crazy because everybody is scared shitless"
- RaptorJ 10y agoit cant be that hard to write the "Dow volatility increases on Fed decision" article
- kristofferR 10y agoA lot of financial articles like that are actually written by bots now.
- eridius 10y agoAIUI there's been a lot of speculation lately that the price of bitcoin was propped up by Chinese investors, so if bitcoin drops 20% at the same time that the Chinese yuan soars, I don't think it's much of a leap to speculate that the former was caused by the latter.
- 21 10y agoI have a question for you. Have you ever traded? This is not meant as an insult. Just for scale, yuan soared 1% today, bitcoin dropped 20%. Yes, I know there is leverage in the forex markets. But more importantly, compared to the yuan market, bitcoin is a spit in the bucket ($300 bln yuan daily volume vs whatever the bitcoin daily volume is) What you're (or the article) is basically saying is that the investors which were into bitcoin wet themselves today by the amazing yuan soar and suddenly decided to move theirs money from bitcoin to the yuan, even if these two are completely different financial things (even if both are named currencies), and one who invests into bitcoin does so for completely different reasons than one investing into the yuan.
- patmcguire 10y agoThe other option is that the price of bitcoin is largely propped up by Chinese investors evading capital controls or using it trade yuan for other currencies at non-official rates. If bitcoin is largely driven by avoiding government controls changes around it could have big effects.
- andrei_says_ 10y agoWhich reminds me: the market is the real-time chart of humanity's hopes and fears. Quite fascinating, really.
- lawpoop 10y agoHumanity's? Don't you mean the global 1%?
- matt_wulfeck 10y agoDo you have a 401k?
- lawpoop 10y agoYes. You and I are part of the global 1%. http://www.investopedia.com/articles/personal-finance/050615/are-you-top-one-percent-world.asp?lgl=bt1tn-no-textnote http://www.investopedia.com/articles/personal-finance/050615... "According to the Global Rich List, a website that brings awareness to worldwide income disparities, an income of $32,400 a year will allow you to make the cut. Using current exchange rates, that amounts to roughly: 29,185 euros 2.2 million Indian rupees, or 211,126 Chinese yuan So if you’re an accountant, a registered nurse or even an elementary school teacher, congratulations. The average wage for any of these careers falls well within the top 1% worldwide."
- andrei_says_ 10y agoWell, I meant "investors'" but humanity sounded so much better ;) And of course participants in the market do get influenced by outside events.
- deleted 10y ago[deleted]
- 21 10y agoYes, I have several years of forex trading experience, and for a couple of years trading was my only source of income. I also made more money than a programmer annual salary trading bitcoin, by using exactly these kind of logic (behavioural/sentiment analysis)