What are Bid, Ask and Forex spread? - FBS

A random guide for scalping - Part V - Understanding Intraday Liquidity

Hi there guys,
Welcome back to my weekly rants. Decided to add some info that should be pretty useful to your daily trading, thanks to the comments of u/Neokill1 and u/indridcold91.
If you have not read the rest of the series, I recommend you take your time and read those before continuing with this piece (check my user activity and scroll down...)
This rant is based on this little comment I posted on the last post:
Price moves because of the imbalance between buying and selling. This happens all the time. Price move where liquidity is, and that seeking of liquidity makes the price to go up and down.
Why price extends on a particular direction? Because longer term players decide it.
So the idea behind what I'm writing about is to follow that longer-term trend, taking advantage of a counter-trend wave that is looking for intra-day liquidity. If I'm bullish on the week, I want to pair my buying with intra-day selling. Because I expect longer-term traders to push price by buying massively. And instead of riding a big wave, I want to ride that push and get out before it retraces.
And also answers to this: why for example would it make sense to draw support/resistance lines on a EUUSD chart? Why would anyone "support" the price of a spread? What are you predicting to happen by drawing those lines, that someone will exchange their currency there simply because it's the same price they exchanged it for in the past and that number is special to them?
A good question that deserves an answer
That question is a pretty good one, and one any trader worth of that name should ask himself why. Why price reacts the way it does? Why price behaves in predetermined ways? Why if I draw a line or area on specific candle places, I expect the price to react?
And the answer is simple and at the same time kinda complicated and fascinating. Why price rallies and rallies andd rallies and then suddenly it stops at a point ,and reverses? . The answer is , because there are sellers at that point. There is liquidity there. There is people at that point that decided it was worth to sell enough to reverse that rally.
All the market does is to put together buyers and sellers. If you want to buy something at some price, someone must agree with you. If no ones agrees, then you will have to offer more. When buyers and sellers agree on similar terms, price is stable. Buying and selling happens on a tight range, because both consider that particular price range worth.
But then, perhaps, someone wants to buy big. And there are not enough sellers. This big boy will dry the available liquidity , and it is hungry for more. So price will move from a balanced state to an imbalanced state. This imbalance in volume between buyers and sellers will cause the price to move up, taking all available liquidity till the monster is satiated. Then the exhaustion of bids, or buying, will cause the price to reverse to a point where buying interest is back.
The same applies for selling activity. The main take away you should get from this is simply that the market keeps moving from balance to imbalance to balance to imbalance all the time. And the points where the big bois deploy this activity of buying , of selling, of protecting levels, of slowly entering the markets, are mostly predetermined. Surprised? Most of the institutional activity happens at : 00 ,20, 50 and 80 levels.
So why drawing a line makes sense? It makes sense because when price stalls at some point, is because sellers or buyers stepped in and stopped the movement. Its a level where something interesting is happening.
It's a level where liquidity was present, and the question is, what is going to happen the next time price touches the area? Is someone stepping in to buy or sell at this point? Or perharps the first touch dried the liquidity, and there is nothing preventing price from going up again??
Lets see a real example of a trade I took today on GBPUSD, where I analyze step by step the balance and imbalance of the market liquidity in real time at those levels. The only way to see this is usingfutures. Because forex is a decentralized market and blah blah blah, and futures are centralized so you can see the volume, the limit orders through the DOM and blah blah blah....
So first things first, read well this articule : https://optimusfutures.com/tradeblog/archives/order-flow-trading
Understand well what is said there. Take it easy. Take your time. And then come back to me.
If you have followed my work, you know how I like to ride the market. I want a retracement on the most liquid moment in the market - the NY-London Overlap, and I need a daily BIAS on the pair.
For today, I'm bullish on the GBPUSD.
So lets check the pics.
https://imgur.com/a/kgev9lT
The areas you see marked on the 30 min charts are based on the price relationships that happened last Friday. As you can see, those areas are always in a place where price stalled, retraced, pushed through,came back to the area and reacted in some way. Are those black magic? Why price reacts so smoothly today on them? Ah you Criptochihuahua, this is 20/20 insight, you are lying....
Those points are marked before today's open, simply because of the price relationship I described earlier. And if you remember the earlier rant, price stalls in there because sellers or buyers were present.
So I would expect that the levels are still interesting, and we should be watching carefully how price reacts in real time.
Now, today I got at 1.2680 and got out at 1.2725. Let's check the 2nd pic, keep following the narrative with your own charts.
What you are seeing is the first touch at the big figure with the total volume chart, and the bid/ask order flow chart. You can see how the price is pulled toward that level through the exhaustion of offers being filled. You can see how exactly they are depleted at 15:51. Why? Because at the next min, you can see how there are no offers being filled, compared to the bids.
Remember, when offers are getting filled , price pulls up. When the bids are predominantly being filled, price is pulled down.
And also take a look on the volume. This is key. If an imbalance is to happen, is because there should be a huge difference between bids and asks. Good volume on such a level, good sign. Price hugging the level without good volume, the level will most likely be broken.
Look at the next pic. See the price behavior in combination with the volume? Price is hugging the level on low volume. Great signal. That means the level is not that greatly defended, at this point.
What are we looking for? We are looking for the bids to be exhausted at our next level with a good volume reaction. Watch what happens.
Next pic is our retracement , and we are watching carefully. And look at that beauty. Do you see the volume? Do you see the bids exhaustion? Do you see how the market orders are getting absorbed by the limit orders at that point? Someone does not want the price to go down. Price jumps as a result. It does not huge the level. Do you see? I'm all in, I want to take part of this trade.
But wait, there is more.... look at the next pic, because you yet have another opportunity to get into this train.... at 17:23.. Even a bigger reaction, while on the other side.... we got more hugging...
No more pics for today. You see what happens next. The level gets broken and price rallies to take the previous day high. Trade was a success.
So I hope this added some value, and explained why drawing lines is useful, and how levels are indeed defended.
P.S - I lied: Extra Pic, you got a VWAP chart with Standard Deviations. You can see how the pullback nicely fits in our long framework as well and adds confluence to the trade. Research about this :)
submitted by Cryptochihuahua to Forex [link] [comments]

A Short Story that Describes Imaginary Events and People of Worldwide Calamities and the Aftermath (the 2nd Edition)

The following story, all names, characters, and incidents portrayed in this post are fictitious. No identification with actual persons (living or deceased), places, buildings, and products is intended or should be inferred.
However, the LINKS to real-life events and inspiring sources are placed here and there throughout the story.
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Truth is the Only Light
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INTRO
☞ [As of 2019] there are plenty of reasons to think the Chinese system will implode spectacularly without Japanese feeling the need to do a thing. — Peter Zaihan, Disunited Nations (Mar 03, 2020)
It's apparent that two nations have been engaged in a high-stakes military & economy arms race. The current US admin has been hitting China with waves of tariffs, but that was merely a small part of what's actually going on. [1] [2] [3] [4] [5] [6] [7] [8]
On Oct 11, 2019, when they reached a tentative agreement for the first phase of a trade deal, the fact that China made the concession actually made my jaw drop. From where I sit, it was a worrisome scene. Aren't people saying, when challenging situations are bottled up, they will just grow and mutate into another terrible complications?
Admittedly I was not certain how they are going to adhere to the agreement: It left most of the US tariffs (on China's exports) in place, and at the same time, came with an additional USD $200 Billion burden for China over the next two years. This agreement might seem a bit insignificant, but now China would need to purchase almost twice the size of the US products & services they did before the trade war began.
With their current economic climate? I murmured, "No way."
While watching Trump brag and boast around with said agreement, I expected China would soon come out and fling some improvised excuses in order to delay the document-signing process. It wouldn't be their first time. More importantly, even if China does so, there wouldn't be many (real) counterattack options left for the Trump admin during this year, the US presidential election year.
Then, on Jan 16, 2020, the world’s two largest economies actually signed a partial trade agreement aimed at putting the brakes on an 18-month trade war. China would almost surely not sit down but come back to bite, I thought.
Enter the worldwide chaos following so called the COVID-19 outbreak.
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BACKGROUND
☞ Globalists have been heavily investing in China's economy and its components overseas.
• Here are a couple of well known names: the Great Old One; George Soros; Koos Bekker; and Bill Gates.
• For the sake of convenience, from here on, let's call these globalists, who are foreign investors in China's top tier state-owned/sponsored/controlled enterprises, Team-Z.
• Team-Z has adopted big time lackeys like Henry Kissinger or small time ones like Larry Summers, Stephen Hadley, or Bill Browder as matchmakers to court Team-Z for China's top tier enterprises. When Israel's highest echelons chimed in, it has been through Israeli IT companies and the BRI projects.
• Naturally, multinational investment banks have also been employed; such as Morgan Stanley, Goldman Sachs, Royal Bank of Scotland (RBS), UBS Group AG (formerly Union Bank of Switzerland), Blackstone Group, Canaccord Genuity, BlackRock, Hermitage, or Mirae Asset.
☞ Note: The Great Old One didn't use any matchmakers, something peasants would need. Because the Great Old One's power level is over 9000.
• China's Shanghai clique used to keep the nation's state-sponsored enterprises under their firm grip: Enterprises such as Alibaba Group, Tencent, Baidu, Wanda Group, HNA Group, Anbang Group, Evergrande Group, CEFC Energy and Huawei, all of which Team-Z has massively invested in.
Here is how Shanghai clique and Team-Z, esp. Bill Gates, started to get together: [LINK]
• However, in the name of anti-corruption campaign, Xi Jinping & his Princelings have been taking those businesses away from Shanghai clique's hand, and transforming those state-sponsored private enterprises into the state-owned enterprises, declaring the 國進民退 movement.
• Slaying Shanghai clique's control = [1] [2] [3] [4] [5] [6]
• 國進民退 + Slaying Shanghai clique's control = [A] [B] [C]
• Xi's reign didn't arrive today without challenges though: the BRI projects' poor outcome has frustrated Israel's great expectations. And since the US-China trade war has started, the problems of China's economic systems started to surface, not to mention China's economy has long been decaying.
• Coupled with the US-China trade war, the current US admin has been trying to block Huawei from accessing the international financial systems that the US can influence, as well as the US banking systems. This is a good time to remind you again that Bill Gates has had a very close-knit relationship with Huawei.
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TRADE WAR & INTERNET-BASED COMPANIES
☞ It's the trade war, but why were internet-based companies such as Tencent and Baidu suffering losses?
Answer: The state-sponsored companies like Tencent, Baidu, or Huawei have heavily invested in international trade and commodity markets, which are easily influenced by aspects that IMF interest rates, the US sanctions, or trade war can create.
Example: Let's say, Tencent invests in a Tehran-based ride-hailing company. Then, through said ride-hailing company, Tencent invests in Iran's petroleum industry. Now, China's most valuable IT company is in international petrochemical trade. The business is going to make great strides until the US imposes trade embargoes oand economic sanctions against Iran.
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TL;DR
China's economy going down = Team-Z losing an astronomical amount of money.
★ Wednesday, Sep 26, 2018 ★
"Gentlemen, you guys might want to do something before it's too bloody late, no? His speech last night was .... (sniggers) Mr. Gates, now is as good a time as any. Mr. Soros, hm, don't look at me like that."
".... But,"
"Yes, Mr. Soros, your HNA is going down, too. .... Ah, Schwarzman xiansheng, we're very sorry to learn about Blackstone's Iran & SinopecChina situation. So, we're guessing, you'd be happy to join Mr. Gates's operation, yes? Of course, We already contacted Kissinger xiansheng. .... Okay then, Gentlemen?"
• Now you can take a guess why George Soros has recently been sending out confusing messages regarding Xi Jinping.
• Wait, how about Wuhan Institute of Virology? Doesn't this story concern the COVID-19 outbreak? Is the Wuhan Institute also associated with Shanghai clique? Yes, indeed. Here's How Wuhan Institute of Virology and Shanghai Clique are related: [LINK]
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EIGHT OBJECTIVES
☞ Calling for the tide to be turned, Team-Z and Shanghai clique started to devise the plan. The objectives are:
By shutting down international trade, crashing world economy, and exploiting its aftermath, the plan should produce an outcome letting Team-Z earn back their loss from the trade war & the US sanctions, and collect additional profits from China's BRI projects & stock markets worldwide, including the US stock markets.
Don't forget this: This point number also concerns the developing nations on the BRI with the large deposits of natural resources that Team-Z has invested in through China. If everything comes together nicely, Team-Z will pick up trillions of dollars from those nations alone as if they are light as a feather. Ironically this will reinforce the BRI project governance and mitigate fraud & corruption risks inherent to the international development projects.
By utilizing the aftermath in the US, a new US administration consisted of pro-Beijing personnels should be fostered at the 2020 election. In a worst-case scenario, the aftermath should be abused enough to make Robert Lighthizer to leave the admin. Mr. Mnuchin could stay.
Sometime next year, the phase one trade deal must be reassessed with the new US admin. The reassessment should help China take the upper-hand at the second phase trade talk.
The pandemic crisis should yield a situation which allows China to delay the payments for its state-firm offshore debts. With the point number , this will give China a breathing room to manage its steadily-fallen forex reserves.
Since their current turf (in China) is education industry & medical science industry, Shanghai clique will have no issue with earning hefty profits by managing China's export of medical equipments & health care products which can be supplied worldwide mainly by China. People in the west will bent the knees for the clique's support.
☞ Regarding Jiang Zemin's son and medical science industry in China [LINK]
The outcome should weaken Xi & his Princelings' political power considerably in favour of Shanghai clique & Team-Z. This will let Jiang's Shanghai clique (A) reclaim some of political status & business interest controls they have lost to Xi & his Princelings.
• And once this point number , with the point number , is realized, it would be much easier for the clique to (B) recover their huge assets hidden overseas that the current US admin or Xi & his Princelings have frozen.
Combining good old bribery with sex, the outcome should support China to re-secure control over the US governors. Once the plan is executed successfully, those governors would desperately need solutions to local economic problems and unemployment.
Lastly, implementing an e-ID system in the US similar to Beijing's Alipay and WeChat could be the cherry on top of the operation's entire outcomes. Who's supporting such a system worldwide? None other than Microsoft and Rockefeller Foundation. ಠ_ಠ
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OLD COMRADE BECOMES A NEW RECRUIT
☞ They were afraid more talents were needed. The main target was the world’s largest economy with the most powerful military capability, after all.
They ended up asking Mr. Fridman to see Lord Putin about that. The old Vova was going through a lot nowadays, people said. It could be because his nation's energy business to Europe seems to be hitting wall after wall. He is said to have enough on his plate with no end in sight, so maybe he'll join.
★ Monday, Jan 15, 2018 ★
"(pours a drink for himself) I know, but. ... What would happen if Bashar falls? How long you think you can keep it up? .... Erdogan is many things (sniggers) but he's never gentle. (sips his drink slowly) When Benji's EastMed Pipeline starts to actively compete, then what? They got the China money now. .... Vagit and his buddies will be very unhappy. You know that. Not great, Vova."
"...."
"Ah, you mean what are we going to do? Hm? Hm. I'll tell you what we're going to do. This time, we're going to bankrupt the US shale gas sector. Then, of course, we can maybe convince Benji to take their time with the pipeline. Perhaps for good. (sips his drink slowly) Don't worry, Vova, It'll work. You worry too much. We'll come out the other side stronger."
"So, how long until they set it off?
"Hahaa, yes. They'll soon put all things in place. While marching in place, they'll play the tune a couple of months before the next sochelnik."
"Nearly 20 months to brace things here, then?"
"(nod slowly in happiness) Hm. Оторви́сь там, оттопы́рься, Vova"
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USEFUL IDIOTS
☞ When the directive came, these idiots answered claiming they would be gladly "on it." All in the name of rejuvenating China's economy without grasping the real objective prevailing throughout the entire operation. Thing is, they would never realize what they are to Team-Z & their Asian overlord until it’s too late.
Who are they? It's A and B, not A or B: (A) the American corporations that are too big to fail and have suffered a considerable loss because of the US-China trade war. Among those corporations, (B) the ones that have been structured with massive interest-profit relationships in/with China.
"We need China in order for the US as a nation to continue being prosper," they've been shouting. No surprise there, because they've enjoyed the strides of extraordinary profits over the years while the US middle class has continued to shrink.
But, in 2019 when China's stock markets nosedived for the first time since 2015 and China's authorities in financial stability & resiliency fumbled their response; it wiped that smile off their face. Still, they'll keep behaving not to offend their Asian overlord, nonetheless.
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PERFECT PLAN
☞ Many crucial components had to come into play all at once in order to cause World War I. If one of the components were missing or different, it is unlikely that the World War I as we know of could be produced.
The US in 2019: Overbought bubbles + Over borrowed corporations
The US in 2020: It's an Election Year.
Russia has been dumping US Treasuries for the past few years.
Russia has been hoarding golds as if they were recreating Inca Empire.
China in 2019: Immense & long term financial troubles has started to surface.
China in 2020: The phase-one deal has been signed; leaving most of tariffs on China intact and adding another $200 Billion burden for China.
Team-Z sets up a situation in the US where some event(s) would freeze the US supply chains & demand for the next three to ten months.
• Just like the 9/11, the event will be initiated at the clique's own region. However, unlike in China, the US will report multiple epicentres simultaneously.
• And the CDC and the US medical task force will carry on with a number of sabotage acts, to secure enough time for the infected yet untested in those US epicentres to spread plenty. [1] [2] [3]
• Here's a feasible timeline of the operation.
Then, the BOOM: Team-Z (a) manipulates the markets to make sure MM will have liquidity concerns (b) when they need it most. The (c) bottomed out oil price will be an enforcement, which will also wreck the US energy sector as a kicker. The (d) WHO will also join as a disinformation campaign office.
• Then a couple of big name investment managers will lead a movement that (will try to) bring back foreign money back to China. [1] [2]
• Meanwhile, in US, the disinformation campaign will continue to be pushed until the second wave of attack arrives.
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MEASURABLE SHORT-TERM OUTCOME
☞ We're now going through World War III. The global structure laid down by World War II had been shaken by globalization and the rise of China. This pandemic event will shock the structure further. Human history will be divided into Before 2021 and After 2021.
① Outcome pt. 1: Immediate Aftermath [pt.1] [pt.2]
② Outcome pt. 2: The US economy goes deep dive along with world economy, and the only thing Team-Z has to do is to exploit the aftermath which has been thoroughly calculated and eagerly anticipated. — Favoured assessment: There won't be a V curve ever, unless drastic measures taken within the timeframe of four months. Unprecedented market crash, the rapid unemployment acceleration because of the supply-chain shut down, and the near-death security which in turn forces consumer confidence to plummet. We're looking at a super long L shape curve unless the US prepares fast for the second wave of their asymmetric warfare.
③ Outcome pt. 3: Arguably the most important outcome. — Because of the unprecedented shutdown of international trade, the nations heavily rely on exporting natural resources will face the extreme financial threats. What if some of those are emerging markets AND massively in debt to China? What do you think China would do to said nations while the aftermath is hitting the globe hard? [PDF] Something comparable to Latin American Debt Crisis will happen.
④ Outcome pt. 4: Not that significant compared to the others but still notable outcome. — The world will need Shanghai clique's help to get medical products and equipments.
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WHAT'S NEXT?
☞ Several analysts have discussed off the record that next it'd be a proxy warfare not using armed conflicts but with spreading a galaxy of counterfeit-currency across every possible channels.
Coincidently, on Dec 13, 2017, Business Insider reported in an article "A $100 counterfeit 'supernote' found in South Korea could have been made in North Korea" that:
"It was the first of a new kind of supernote ever found in the world," Lee Ho-Joong, head of KEB Hana Bank's anti-counterfeit centre told Agence France-Presse.
Reporting the same news, The Telegraph published an article on Dec 11, 2017:
"It seems that whoever printed these supernotes has the facilities and high level of technology matching that of a government", said Lee Ho-jung, a bank spokesman from KEB Hana Bank in South Korea. "They are made with special ink that changes colour depending on the angle, patterned paper and Intaglio printing that gives texture to the surface of a note".
ಠ_ಠ
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Tale of How Shanghai clique and Globalists Got Together
Wuhan Institute of Virology, Wuhan City, & Shanghai Clique
Feasible Timeline of the COVID-19 Operation
Immediate Aftermath — pt.1.b
Immediate Aftermath — pt.2.a
Remdesivir, Gilead Sciences, Its Shareholders, & Silly Concern
Cases Displaying the Recent Climate of Chinese Economy
Compliance Report by the US State Department on China regarding Biological Weapons Convention — Click "2019 August Unclassified Compliance Report" and see p45.
Jiang Zemin's son & Medical Science Industry in China
What is Guanxi (關係)?
Israeli IT Companies & China
Opinion article "Cancel All Debt to China"
Fun Trivia about Bush Family and China
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submitted by vanillabluesea to conspiracy [link] [comments]

Trump Didn’t Kill the Global Trade System. He Split It in Two.

This article is taken from the Wall Street Journal written about nine months ago and sits behind a a paywall, so I decided to copy and paste it here. This article explains Trump's policies toward global trade and what has actually happened so far. I think the article does a decent job of explaining the Trade War. While alot has happenedsince the article was written, I still think its relevant.
However, what is lacking in the article, like many articles on the trade war, is it doesn't really explain the history of US trade policy, the laws that the US administration is using to place tariffs on China and the official justification for the US President in enacting tariffs against China. In my analysis I will cover those points.

SUMMARY

When Trump entered the White House people feared he would dismantle the global system the US and its allies had built over the last 75 years, but he hasn't. He has realign into two systems. One between the US and its allies which looks similar to the one built since the 1980s with a few of quota and tariffs. As the article points out
Today, Korus and Nafta have been replaced by updated agreements(one not yet ratified) that look much like the originals. South Korea accepted quotas on steel. Mexico and Canada agreed to higher wages, North American content requirements and quotas for autos. Furthermore, the article points out Douglas Irwin, an economist and trade historian at Dartmouth College, calls these results the “status quo with Trumpian tweaks: a little more managed trade sprinkled about for favored industries. It’s not good, but it’s not the destruction of the system.” Mr. Trump’s actions so far affect only 12% of U.S. imports, according to Chad Bown of the Peterson Institute for International Economics. In 1984, 21% of imports were covered by similar restraints, many imposed by Mr. Reagan, such as on cars, steel, motorcycles and clothing. Protectionist instincts go so far in the US, there are strong lobby groups for both protectionist and freetrade in the US.
The second reflects a emerging rivalry between the US and China. Undo some of the integration that followed China accession to the WTO. Two questions 1) How far is the US willing to decouple with China 2) Can it persuade allies to join.
The second is going to be difficult because China's economic ties are greater than they were between the Soviets, and China isn't waging an ideological struggle. Trump lacks Reagan commitment to alliance and free trade. The status quo with China is crumbling Dan Sullivan, a Republican senator from Alaska, personifies these broader forces reshaping the U.S. approach to the world. When Mr. Xi visited the U.S. in 2015, Mr. Sullivan urged his colleagues to pay more attention to China’s rise. On the Senate floor, he quoted the political scientist Graham Allison: “War between the U.S. and China is more likely than recognized at the moment.” Last spring, Mr. Sullivan went to China and met officials including Vice President Wang Qishan. They seemed to think tensions with the U.S. will fade after Mr. Trump leaves the scene, Mr. Sullivan recalled. “I just said, ‘You are completely misreading this.’” The mistrust, he told them, is bipartisan, and will outlast Mr. Trump. both Bush II and Obama tried to change dialogue and engagement, but by the end of his term, Obama was questioning the approach. Trump has declared engagement. “We don’t like it when our allies steal our ideas either, but it’s a much less dangerous situation,” said Derek Scissors, a China expert at the American Enterprise Institute whose views align with the administration’s more hawkish officials. “We’re not worried about the war-fighting capability of Japan and Korea because they’re our friends.”
The article also points out unlike George Kennan in 1946 who made a case for containing the Soviet Union, the US hasn't explicitly made a case for containing the Soviets, Trump's administration hasn't, because as the the article explains its divided Michael Pillsbury a Hudson Institute scholar close to the Trump team, see 3 scenarios
Pillsbury thinks the third is most likely to happen, even though the administration hasn't said that it has adopted that policy. The US is stepping efforts to draw in other trading partners. The US, EU and Japan have launched a WTO effort to crack down on domestic subsidies and technology transfers requirement. US and Domestic concerns with prompted some countries to restrict Huawei. The US is also seeking to walloff China from other trade deals. However, there are risk with this strategy

ARTICLE

Trump Didn’t Kill the Global Trade System. He Split It in Two.

INTRODUCTION

My main criticism of this article is it tries like the vast majority of articles to fit US trade actions in the larger context of US geopolitical strategy. Even the author isn't certain "The first goes to the heart of Mr. Trump’s goal. If his aim is to hold back China’s advance, economists predict he will fail.". If you try to treat the trade "war" and US geopolitical strategy toward China as one, you will find yourself quickly frustrated and confused. If you treat them separately with their different set of stakeholders and histories, were they intersect with regards to China, but diverge. During the Cold War, trade policy toward the Soviet Union and Eastern Bloc was subordinated to geopolitical concerns. For Trump, the trade issues are more important than geopolitical strategy. His protectionist trade rhetoric has been fairly consistent since 1980s. In his administration, the top cabinet members holding economic portfolios, those of Commerce, Treasury and US Trade Representative are the same people he picked when he first took office. The Director of the Economic Council has changed hands once, its role isn't as important as the National Security Advisor. While State, Defense, CIA, Homeland Security, UN Ambassador, National Security Advisor have changed hands at least once. Only the Director of National Intelligence hasn't changed.
International Trade makes up 1/4 of the US economy, and like national security its primarily the responsibility of the Federal government. States in the US don't implement their own tariffs. If you add the impact of Treasury policy and how it relates to capital flows in and out of the US, the amounts easily exceed the size of the US economy. Furthermore, because of US Dollar role as the reserve currency and US control of over global system the impact of Treasury are global. Trade policy and investment flows runs through two federal departments Commerce and Treasury and for trade also USTR. Defense spending makes up 3.3% of GDP, and if you add in related homeland security its at most 4%. Why would anyone assume that these two realms be integrated let alone trade policy subordinate to whims of a national security bureaucracy in most instances? With North Korea or Iran, trade and investment subordinate themselves to national security, because to Treasury and Commerce bureaucrats and their affiliated interest groups, Iran and the DPRK are well, economic midgets, but China is a different matter.
The analysis will be divided into four sections. The first will be to provide a brief overview of US trade policy since 1914. The second section will discuss why the US is going after China on trade issues, and why the US has resorted using a bilateral approach as opposed to going through the WTO. The third section we will talk about how relations with China is hashed out in the US.
The reason why I submitted this article, because there aren't many post trying to explain US-China Trade War from a trade perspective. Here is a post titled "What is the Reasons for America's Trade War with China, and not one person mentioned Article 301 or China's WTO Commitments. You get numerous post saying that Huawei is at heart of the trade war. Its fine, but if you don't know what was inside the USTR Investigative report that lead to the tariffs. its like skipping dinner and only having dessert When the US President, Donald J Trump, says he wants to negotiate a better trade deal with other countries, and has been going on about for the last 35 years, longer than many of you have been alive, why do people think that the key issues with China aren't primarily about trade at the moment.

OVERVIEW OF THE UNITED STATES TRADE ORIENTATION

Before 1940s, the US could be categorized as a free market protectionist economy. For many this may seem like oxymoron, how can an economy be free market and protectionist? In 1913, government spending made up about 7.5% of US GDP, in the UK it was 13%, and for Germany 18% (Public Spending in the 20th Century A Global Perspective: Ludger Schuknecht and Vito Tanzi - 2000). UK had virtual zero tariffs, while for manufactured goods in France it was 20%, 13% Germany, 9% Belgium and 4% Netherlands. For raw materials and agricultural products, it was almost zero. In contrast, for the likes of United States, Russia and Japan it was 44%, 84% and 30% respectively. Even though in 1900 United States was an economic powerhouse along with Germany, manufactured exports only made up 30% of exports, and the US government saw tariffs as exclusively a domestic policy matter and didn't see tariffs as something to be negotiated with other nations. The US didn't have the large constituency to push the government for lower tariffs abroad for their exports like in Britain in the 1830-40s (Reluctant Partners: A History of Multilateral Trade Cooperation, 1850-2000).
The Underwood Tariffs Act of 1913 which legislated the income tax, dropped the tariffs to 1850 levels levels.Until 16th amendment was ratified in 1913 making income tax legal, all US federal revenue came from excise and tariffs. In contrast before 1914, about 50% of UK revenue came from income taxes. The reason for US reluctance to introduced income tax was ideological and the United State's relative weak government compared to those in Europe. After the First World War, the US introduced the Emergency Tariff Act of 1921, than the Fordney–McCumber Tariff of 1922 followed by a Smoot-Hawley Act of 1930. Contrary to popular opinion, the Smoot-Hawley Act of 1930 had a small negative impact on the economy, since imports and exports played a small part of the US economy, and the tariffs were lower than the average that existed from 1850-1914.
Immediately after the Second World War, when the US economy was the only industrialized economy left standing, the economic focus was on rehabilitation and monetary stability. There was no grandiose and ideological design. Bretton Woods system linked the US dollar to gold to create monetary stability, and to avoid competitive devaluation and tariffs that plagued the world economy after Britain took itself off the gold in 1931. The US$ was the natural choice, because in 1944 2/3 of the world's gold was in the US. One reason why the Marshall Plan was created was to alleviate the chronic deficits Europeans countries had with the US between 1945-50. It was to rebuild their economies so they could start exports good to the US. Even before it was full implemented in 1959, it was already facing problems, the trade surpluses that the US was running in the 1940s, turned to deficits as European and Japanese economies recovered. By 1959, Federal Reserves foreign liabilities had already exceeded its gold reserves. There were fears of a run on the US gold supply and arbitrage. A secondary policy of the Bretton woods system was curbs on capital outflows to reduce speculation on currency pegs, and this had a negative impact on foreign investment until it was abandoned in 1971. It wasn't until the 1980s, where foreign investment recovered to levels prior to 1914. Factoring out the big spike in global oil prices as a result of the OPEC cartel, it most likely wasn't until the mid-1990s that exports as a % of GDP had reached 1914 levels.
Until the 1980s, the US record regarding free trade and markets was mediocre. The impetus to remove trade barriers in Europe after the Second World War was driven by the Europeans themselves. The EEC already had a custom union in 1968, Canada and the US have yet to even discuss implementing one. Even with Canada it took the US over 50 years to get a Free Trade Agreement. NAFTA was inspired by the success of the EEC. NAFTA was very much an elite driven project. If the Americans put the NAFTA to a referendum like the British did with the EEC in the seventies, it most likely wouldn't pass. People often look at segregation in the US South as a political issue, but it was economic issue as well. How could the US preach free trade, when it didn't have free trade in its own country. Segregation was a internal non-tariff barrier. In the first election after the end of the Cold War in 1992, Ross Perot' based most of independent run for the Presidency on opposition to NAFTA. He won 19% of the vote. Like Ross Perot before him, Donald Trump is not the exception in how America has handled tariffs since the founding of the Republic, but more the norm.
The embrace of free trade by the business and political elite can be attributed to two events. After the end of Bretton Woods in 1971, a strong vested interest in the US in the form of multinationals and Wall Street emerged advocating for removal of tariffs and more importantly the removal of restrictions on free flow of capital, whether direct foreign investment in portfolio investment. However, the political class embrace of free trade and capital only really took off after the collapse of the Soviet Union propelled by Cold War triumphalism.
As mentioned by the article, the US is reverting back to a pre-WTO relations with China. As Robert Lighthizer said in speech in 2000
I guess my prescription, really, is to move back to more of a negotiating kind of a settlement. Return to WTO and what it really was meant to be. Something where you have somebody make a decision but have it not be binding.
The US is using financial and legal instruments developed during the Cold War like its extradition treaties (with Canada and Europe), and Section 301. Here is a very good recent article about enforcement commitment that China will make.‘Painful’ enforcement ahead for China if trade war deal is reached with US insisting on unilateral terms
NOTE: It is very difficult to talk about US-China trade war without a basic knowledge of global economic history since 1914. What a lot of people do is politicize or subordinate the economic history to the political. Some commentators think US power was just handed to them after the Second World War, when the US was the only industrialized economy left standing. The dominant position of the US was temporary and in reality its like having 10 tonnes of Gold sitting in your house, it doesn't automatically translate to influence. The US from 1945-1989 was slowly and gradually build her influence in the non-Communist world. For example, US influence in Canada in the 1960s wasn't as strong as it is now. Only 50% of Canadian exports went to the US in 1960s vs 80% at the present moment.

BASIS OF THE US TRADE DISCUSSION WITH CHINA

According to preliminary agreement between China and the US based on unnamed sources in the Wall Street Journal article US, China close in on Trade Deal. In this article it divides the deal in two sections. The first aspects have largely to do with deficits and is political.
As part of a deal, China is pledging to help level the playing field, including speeding up the timetable for removing foreign-ownership limitations on car ventures and reducing tariffs on imported vehicles to below the current auto tariff of 15%. Beijing would also step up purchases of U.S. goods—a tactic designed to appeal to President Trump, who campaigned on closing the bilateral trade deficit with China. One of the sweeteners would be an $18 billion natural-gas purchase from Cheniere Energy Inc., people familiar with the transaction said.
The second part will involve the following.
  1. Commitment Regarding Industrial Policy
  2. Provisions to protect IP
  3. Mechanism which complaints by US companies can be addressed
  4. Bilateral meetings adjudicate disputes. If talks don't produce agreement than US can raise tariffs unilaterally
This grouping of conditions is similar to the points filled under the 301 investigation which serve the basis for initiating the tariffs. I have been reading some sources that say this discussion on this second group of broader issues could only be finalized later
The official justifications for placing the tariffs on Chinese goods is found under the March 2018 investigation submitted by the office of the President to Congress titled FINDINGS OF THE INVESTIGATION INTO CHINA’S ACTS, POLICIES, AND PRACTICES RELATED TO TECHNOLOGY TRANSFER, INTELLECTUAL PROPERTY, AND INNOVATION UNDER SECTION 301 OF THE TRADE ACT OF 1974. From this investigation the United States Trade Representative (USTR) place US Tariffs on Chinese goods as per Section 301 of the Trade Act of 1974. Here is a press release by the USTR listing the reasons for placing tariffs, and the key section from the press release. Specifically, the Section 301 investigation revealed:
In the bigger context of trade relations between US and China, China is not honoring its WTO commitments, and the USTR issued its yearly report to Congress in early February about the status of China compliance with its WTO commitments. The points that served as a basis for applying Section 301, also deviate from her commitments as Clinton's Trade Representative Charlene Barshefsky paving the way for a trade war. Barshefsky argues that China's back sliding was happening as early as 2006-07, and believes the trade war could have been avoided has those commitments been enforced by previous administrations.
I will provide a brief overview of WTO membership and China's process of getting into the WTO.
WTO members can be divided into two groups, first are countries that joined in 1995-97, and were members of GATT, than there are the second group that joined after 1997. China joined in 2001. There is an argument that when China joined in 2001, she faced more stringent conditions than other developing countries that joined before, because the vast majority of developing countries were members of GATT, and were admitted to the WTO based on that previous membership in GATT. Here is Brookings Institute article published in 2001 titled "Issues in China’s WTO Accession"
This question is all the more puzzling because the scope and depth of demands placed on entrants into the formal international trading system have increased substantially since the formal conclusion of the Uruguay Round of trade negotiations in 1994, which expanded the agenda considerably by covering many services, agriculture, intellectual property, and certain aspects of foreign direct investment. Since 1994, the international community has added agreements covering information technology, basic telecommunications services, and financial services. WTO membership now entails liberalization of a much broader range of domestic economic activity, including areas that traditionally have been regarded by most countries as among the most sensitive, than was required of countries entering the WTO’s predecessor organization the GATT.
The terms of China’s protocol of accession to the World Trade Organization reflect the developments just described and more. China’s market access commitments are much more far-reaching than those that governed the accession of countries only a decade ago. And, as a condition for membership, China was required to make protocol commitments that substantially exceed those made by any other member of the World Trade Organization, including those that have joined since 1995. The broader and deeper commitments China has made inevitably will entail substantial short-term economic costs.
What are the WTO commitments Barshefsky goes on about? When countries join the WTO, particularly those countries that weren't members of GATT and joined after 1997, they have to work toward fulfilling certain commitments. There are 4 key documents when countries make an accession to WTO membership, the working party report, the accession protocol paper, the goods schedule and service schedule.
In the working party report as part of the conclusion which specifies the commitment of each member country what they will do in areas that aren't compliant with WTO regulations on the date they joined. The problem there is no good enforcement mechanism for other members to force China to comply with these commitments. And WTO punishments are weak.
Here is the commitment paragraph for China
"The Working Party took note of the explanations and statements of China concerning its foreign trade regime, as reflected in this Report. The Working Party took note of the commitments given by China in relation to certain specific matters which are reproduced in paragraphs 18-19, 22-23, 35-36, 40, 42, 46-47, 49, 60, 62, 64, 68, 70, 73, 75, 78-79, 83-84, 86, 91-93, 96, 100-103, 107, 111, 115-117, 119-120, 122-123, 126-132, 136, 138, 140, 143, 145, 146, 148, 152, 154, 157, 162, 165, 167-168, 170-174, 177-178, 180, 182, 184-185, 187, 190-197, 199-200, 203-207, 210, 212-213, 215, 217, 222-223, 225, 227-228, 231-235, 238, 240-242, 252, 256, 259, 263, 265, 270, 275, 284, 286, 288, 291, 292, 296, 299, 302, 304-305, 307-310, 312-318, 320, 322, 331-334, 336, 339 and 341 of this Report and noted that these commitments are incorporated in paragraph 1.2 of the Draft Protocol. "
This is a tool by the WTO that list all the WTO commitment of each country in the working paper. In the goods and service schedule they have commitments for particular sectors. Here is the a press release by the WTO in September 2001, after successfully concluding talks for accession, and brief summary of key areas in which China hasn't fulfilled her commitments. Most of the commitments made by China were made to address its legacy as a non-market economy and involvement of state owned enterprises. In my opinion, I think the US government and investors grew increasingly frustrated with China, after 2007 not just because of China's back sliding, but relative to other countries who joined after 1997 like Vietnam, another non-market Leninist dictatorship. When comparing China's commitments to the WTO its best to compare her progress with those that joined after 1997, which were mostly ex-Soviet Republics.
NOTE: The Chinese media have for two decades compared any time the US has talked about China's currency manipulation or any other issue as a pretext for imposing tariffs on China to the Plaza Accords. I am very sure people will raise it here. My criticism of this view is fourfold. First, the US targeted not just Japan, but France, Britain and the UK as well. Secondly, the causes of the Japan lost decade were due largely to internal factors. Thirdly, Japan, UK, Britain and France in the 1980s, the Yuan isn't undervalued today. Lastly, in the USTR investigation, its China's practices that are the concern, not so much the trade deficit.

REASONS FOR TRUMPS UNILATERAL APPROACH

I feel that people shouldn't dismiss Trump's unilateral approach toward China for several reasons.
  1. The multilateral approach won't work in many issues such as the trade deficit, commercial espionage and intellectual property, because US and her allies have different interest with regard to these issues. Germany and Japan and trade surpluses with China, while the US runs a deficit. In order to reach a consensus means the West has to compromise among themselves, and the end result if the type of toothless resolutions you commonly find in ASEAN regarding the SCS. Does America want to "compromise" its interest to appease a politician like Justin Trudeau? Not to mention opposition from domestic interest. TPP was opposed by both Clinton and Trump during the election.
  2. You can't launch a geopolitical front against China using a newly formed trade block like the TPP. Some of the existing TPP members are in economic groups with China, like Malaysia and Australia.
  3. China has joined a multitude of international bodies, and at least in trade, these bodies haven't changed its behavior.
  4. Dealing with China, its a no win situation whether you use a tough multilateral / unilateral approach. If the US endorse a tough unilateral approach gives the impression that the US is acting like the British during the Opium War. If you take a concerted Western approach you are accused of acting like the 8 Powers Alliance in 1900.
  5. Trump was elected to deal with China which he and his supporters believe was responsible for the loss of millions manufacturing jobs when China joined the WTO in 2001. It is estimate the US lost 6 Million jobs, about 1/4 of US manufacturing Jobs. This has been subsequently advanced by some economists. The ball got rolling when Bill Clinton decided to grant China Most Favored Nation status in 1999, just a decade after Tiananmen.
  6. China hasn't dealt with issues like IP protection, market access, subsidies to state own companies and state funded industrial spying.
To his credit, Trump has said his aim was not to overthrow authoritarian governments, and that even applies to the likes of Iran. The Arab spring scared Russia and China, because the US for a brief moment placed the spread of democracy over its security interest.

UNDERSTANDING HOW THE US MAKES DECISIONS REGARDING CHINA

At this moment, China or the trade war isn't an area of great concern for the American public, among international issues it ranks lower than international terrorism, North Korea and Iran's nuclear program.
According to the survey, 39 percent of the country views China’s growing power as a “critical threat” to Americans. That ranked it only eighth among 12 potential threats listed and placed China well behind the perceived threats from international terrorism (66 percent), North Korea’s nuclear program (59 percent) and Iran’s nuclear program (52 percent). It’s also considerably lower than when the same question was asked during the 1990s, when more than half of those polled listed China as a critical threat. That broadly tracks with a recent poll from the Pew Research Center that found concern about U.S.-China economic issues had decreased since 2012.
In looking at how US conducts relations foreign policy with China, we should look at it from the three areas of most concern - economic, national security and ideology. Each sphere has their interest groups, and sometimes groups can occupy two spheres at once. Security experts are concerned with some aspects of China's economic actions like IP theft and industrial policy (China 2025), because they are related to security. In these sphere there are your hawks and dove. And each sphere is dominated by certain interest groups. That is why US policy toward China can often appear contradictory. You have Trump want to reduce the trade deficit, but security experts advocating for restrictions on dual use technology who are buttressed by people who want export restrictions on China, as a way of getting market access.
Right now the economic concerns are most dominant, and the hawks seem to dominate. The economic hawks traditionally have been domestic manufacturing companies and economic nationalist. In reality the hawks aren't dominant, but the groups like US Companies with large investment in China and Wall Street are no longer defending China, and some have turned hawkish against China. These US companies are the main conduit in which China's lobby Congress, since China only spends 50% of what Taiwan spends lobbying Congress.
THE ANGLO SAXON WORLD AND CHINA
I don't think many Chinese even those that speak English, have a good understanding Anglo-Saxon society mindset. Anglo Saxons countries, whether US, UK, Canada, Australia, New Zealand and Ireland are commerce driven society governed by sanctity of contracts. The English great philosophical contributions to Western philosophy have primarily to do with economics and politics like Adam Smith, John Locke, David Hume and Thomas Hobbes. This contrast with the French and Germans. Politics in the UK and to a lesser extent the US, is centered around economics, while in Mainland Europe its religion. When the Americans revolted against the British Empire in 1776, the initial source of the grievances were taxes.
Outside of East Asia, the rest of the World's relationship with China was largely commercial, and for United States, being an Anglosaxon country, even more so. In Southeast Asia, Chinese aren't known for high culture, but for trade and commerce. Outside Vietnam, most of Chinese loans words in Southeast Asian languages involve either food or money. The influence is akin to Yiddish in English.
Some people point to the Mao and Nixon meeting as great strategic breakthrough and symbol of what great power politics should look like. The reality is that the Mao-Nixon meeting was an anomaly in the long history of relations with China and the West. Much of China-Western relations over the last 500 years was conducted by multitudes of nameless Chinese and Western traders. The period from 1949-1979 was the only period were strategic concerns triumphed trade, because China had little to offer except instability and revolution. Even in this period, China's attempt to spread revolution in Southeast Asia was a threat to Western investments and corporate interest in the region. During the nadir of both the Qing Dynasty and Republican period, China was still engaged in its traditional commercial role. Throughout much of history of their relations with China, the goals of Britain and the United States were primarily economic,
IMAGINE JUST 10% OF CHINA BOUGHT MY PRODUCT
From the beginning, the allure of China to Western businesses and traders has been its sheer size I. One of the points that the USTR mentions is lack of market access for US companies operating in China, while Chinese companies face much less restrictions operating in the US.
This is supported by remarks by Henry Paulson and Charlene Barshefsky. As Paulson remarked
Trade with China has hurt some American workers. And they have expressed their grievances at the ballot box.
So while many attribute this shift to the Trump Administration, I do not. What we are now seeing will likely endure for some time within the American policy establishment. China is viewed—by a growing consensus—not just as a strategic challenge to the United States but as a country whose rise has come at America’s expense. In this environment, it would be helpful if the US-China relationship had more advocates. That it does not reflects another failure:
In large part because China has been slow to open its economy since it joined the WTO, the American business community has turned from advocate to skeptic and even opponent of past US policies toward China. American business doesn’t want a tariff war but it does want a more aggressive approach from our government. How can it be that those who know China best, work there, do business there, make money there, and have advocated for productive relations in the past, are among those now arguing for more confrontation? The answer lies in the story of stalled competition policy, and the slow pace of opening, over nearly two decades. This has discouraged and fragmented the American business community. And it has reinforced the negative attitudinal shift among our political and expert classes. In short, even though many American businesses continue to prosper in China, a growing number of firms have given up hope that the playing field will ever be level. Some have accepted the Faustian bargain of maximizing today’s earnings per share while operating under restrictions that jeopardize their future competitiveness. But that doesn’t mean they’re happy about it. Nor does it mean they aren’t acutely aware of the risks — or thinking harder than ever before about how to diversify their risks away from, and beyond, China.
What is interesting about Paulson's speech is he spend only one sentence about displaced US workers, and a whole paragraph about US business operating in China. While Kissinger writes books about China, how much does he contribute to both Democrats and the Republicans during the election cycle? China is increasingly makING it more difficult for US companies operating and those exporting products to China.

CONTINUED

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The intelligent investors guide to cryptocurrency: Part 3b - Pricing and liquidity

*Introductions: I'm joskye. A cryptocurrency investor and holder. *
...
 
Hi again. This is the third part in our ongoing series on how to trade better and determine intelligent investments in cryptocurrency for the future.
 
 
Part 3b continues where I left off with a discussion about price metrics specifically, what determines the price and the importance of liquidity:
...
 
The day traders:
 
As I mentioned in my previous article, as of writing almost every cryptocurrency is determined purely by speculative value.
 
 
For instance in cryptocurrency Bitcoin is still the biggest player in the game. It carries a per unit price of $900 per coin. There are currently 16,090,137 (16 million) coins in circulation giving it a total marketcap value of [$900 x 16090137 =] $14481123300 or 14.48 billion USD.
 
 
Shadowcash looks even more meagre compared to the total cryptocurrency marketcap with only 0.048% of the total cryptocurrency sphere.
To any Shadowcash holders despairing at this point, relax. There are over 707 cryptocurrencies trading as of writing and SDC holds the 27th ranking in terms of market cap. In such a competitive field, filled with scams that's pretty good. Moreso when you consider that SDC is a legitimate technology and is currently probably very undervalued.
...
 
Lets look at the rich list for bitcoin:
 
Why did I just talk about this?
 
In cryptocurrency I see this happening on the markets all the time. Indeed market manipulation effects every single cryptocurrency eventually.
...
 
Market manipulation!
 
Large holders of valuable, high marketcap coins will often make multiple small volume purchases of less valuable, low marketcap coins. Often this will follow announcements regarding developments in that low marketcap coin.
 
 
Low volume buying in a market with low daily trading volume can gradually drive up the price attracting an influx of buyers into that coin; often they will make larger volume purchases of it which helps drive up the price much further. This will trigger a further chain of buyers experiencing FOMO (fear of missing out, detailed in Part 2) who will drive up the price even further. The price will pump. Often will smaller cap cryptocurrencies this may result in a sudden 20, 40, 60 or even +100% increase in value often over a very short time space (1-2 days, 1-2 weeks maximum).
 
 
The only way to discern if the sudden rise in coin value is due to pre-rigged market manipulation is to look at:
 
You are looking for organic, gradual growth based on a solid value proposition. Sudden large spikes in value should make you pause and wonder if it's worth waiting for a gradual correction (organic drop) in price before entering your buy order.
 
Do not fall for a pump and dump. Stick to the lessons covered in previous parts of this guide (especially part 3a and 2) and you will be much less likely to lose money in the long run trading and investing in cryptocurrencies.
...
 
The pattern of change on daily trading volume, the order book and liquidity:
 
Lets look at SDC and Bitcoin again. This time we are going to compare the daily trading volume (last 24 hours) in USD.
 
 
I'd just like to use this opportunity to point out and reinforce the idea that day traders not holders dictate the daily price of an asset. I'd also like to point out daily global trading volume on Forex is $4800 billion which makes Bitcoin a very small fish in the broader arena of global finance and trade i.e. Bitcoin is still very vulnerable to all the price manipulation tactics and liquidity issues I am going to be describing in this article by bigger players with richer pockets.
 
 
The daily trading volume also gives you an idea of how much fiat currency you can invest into a given cryptocurrency before you suddenly shift the price.
 
 
A sudden rise in coin price heavily out of proportion to the rise in daily trading volume should be the first sign to alert you to a pump & dump scam.
 
Daily trading volume should show a steady increase over time with sustained buy support at new price levels; this is a good marker of organic, sustainable growth.
...
 
For more detail you can now look at the depth chart:
 
The depth chart is very useful to know how much fiat currency is required to cause the spot price of a given cryptocurrency to rise or fall by a given amount.
 
NB the price of most cryptocurrencies is expressed in Bitcoin because it has the largest market cap and daily trading volume of all cryptocurrencies by a very large margin and because with a few exceptions (Ethereum, Monero) most cryptocurrencies do not have routes to directly purchase via fiat currency without first purchasing Bitcoin.
 
Liquidity is super important. People often complain about a market lacking liquidity but that is often because they are trading in fiat volumes which far exceed the daily trading fiat volumes of the cryptocurrency they are referring to. If you are investing or trading in a cryptocurrency, always factor in the your personal liquidity and need for liquidity relative to that of the cryptocurrency you are investing in. In other words don't expect to make a profit next day selling 'cryptocurrency x' if the size your single buy order composes >90% of the buy orders on the market for 'cryptocurrency x' that day (indeed in such a scenario be very prepared to sell at a loss next day if you absolutely have to)!
 
 
There are certain patterns on a depth chart that make me believe a significant, sustained price rise is imminent: One example occurs when there is a very large volume of buy orders (>25% of total buy volume within 5% of current price) very close to the current (spot) price, and a very large number of sell orders close to but significantly above the spot price (approx 25% total sell volume within 10% of current price) and especially if the total buy order volume is a significantly higher percentage than it has previously been. This simply indicates high demand at current price which may soon outstrip supply. Again I stress that these patterns can be manipulated easily by wealthy traders.
 
...
 
The order book is another way of looking at the depth chart and allows you to see the specific transactions occurring that compose daily trading volume by the second!
 
I find it useful because it allows me to identify:
 
...
 
The price charts:
 
Discussions about price charts could be endless. I'm not going to go into too much detail, mostly because I'm an investor who believes the value proposition, good consistent development, decent marketing and communications will ultimately trump spot prices and adverse (or positive) short term price trends in the future.
...
 
The news cycle:
 
...
 
Other interesting points: The 'coin x' scenario and the ridiculousness of marketcap:
 
'Coin X' is an imaginary hypothetical coin. There are only 10 in circulation. It has no value proposition beyond it's speculative value i.e. it will never generate a revenue independent of it's speculative value.
 
 
I'd like to point out the similarities between ZCash and 'coin x' (especially during it's launch).
...
 
Lessons:
 
 
...
 
References:
1. Coinmarketcap rankings: https://coinmarketcap.com/all/views/all/ 2. Coinmarketcap daily trading volumes https://coinmarketcap.com/currencies/volume/24-hou 3. Bitinfocharts - Top 100 Richest Bitcoin addresses: https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html 4. Crypto ID - Shadowcash Rich list: https://chainz.cryptoid.info/sdc/#!rich 
 
...
 
Further articles in this series:
 
"The intelligent investors guide to cryptocurrency"
 
Part 0 -
Part 1 -
Part 2 -
Part 3a -
Part 3b -
Part 4 -
Part 5 -
Part 6 -
Part 7a -
 
"The intelligent investors guide to Particl -"
 
 
Full disclosure/Disclaimer: At time of original writing I had long positions in Ethereum (ETH), Shadowcash (SDC), Iconomi (ICN), Augur (REP) and Digix (DGD). All the opinions expressed are my own. I cannot guarantee gains; losses are sustainable; do your own financial research and make your decisions responsibly. All prices and values given are as of time of first writing (Midday 8th-Jan-2017).
 
Second disclaimer: Please do not buy Shadowcash (SDC), the project has been abandoned by it's developers who have moved on to the Particl Project (PART). The PARTICL crowd fund and SDC 1:1 token swap completed April 15th. You can still exchange SDC for PART but only if it was acquired prior to 15th April 2017 see: https://particl.news/a-community-driven-initiative-e26724100c3a for more information.
 
Addendum: Article updated 23-11-2017 to edit references to SDC (changed to Particl where relevant to reflect updated status) and clean up formatting.
submitted by joskye to Particl [link] [comments]

#liqnet

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Security: LIQNET holds customers’ funds in multiple locations, including hot wallets, multi-signature wallets, and cryptocurrency exchanges. This reduces the risk of theft. Multiple Trading Options: LIQNET supports direct trading from the financial chart and scalping trades (including post limit and stop orders right from the order book). Multiple Order Types: LIQNET supports stop order trades, stop limit trades, TP & SL trades, trailing stop trades, Iceberg, IFD, OCO, IFDOCO, valid till day/time trades, AON, IOC, and FOK trades.
Financial Charts: LIQNET provides a suite of analysis tools. Users can also customize their dashboard with 100+ different trading indicators. Multiple Currency Pairs: Right now, LIQNET lists just four cryptocurrency pairs, including LTC/BTC, ETH/BTC, BCH/BTC, and PPC/BTC. However, they allow users to deposit more currencies, including bitcoin, Litecoin, USD, Ethereum, Bitcoin Cash, DASH, and Peercoin (PPC).
LIQNET Fees A number of cryptocurrency exchanges aggregate liquidity from across different exchanges. So what makes LIQNET special? What kind of fees can you expect to pay? Here are some of the notable fees as listed on the LIQNET fees page: Trading Fees: 0.2% taker fee, 0.1% maker fee Deposit Fees: 0 (0% deposit fees on all deposit options, including bitcoin, Litecoin, USD, Ethereum, Bitcoin Cash, DASH, and Peercoin). Withdrawal Fees: 0.0001 BTC, 0.01 LTC, 0.01 USD, 0.01 ETH, 0.01 BCH, 0.01 DASH, and 0.01 PPC.
The LIQNET ICO LIQNET is expecting to launch a crowdsale in May / June 2018. That crowdsale will consist of a closed pre-sale and an open ICO. Further details of the token sale have not yet been announced. LIQNET has partnered with Como Capital to launch their ICO. It’s unclear how LIQNET tokens will work. However, tokens launched by other cryptocurrency exchanges typically provide a discount on trading fees. You might only pay 0.1% or 0.5% trading fees when paying with LIQNET’s tokens, for example.Who’s Behind LIQNET? LIQNET was created by a team of finance, law, and technology professionals with a proven track record in traditional investments and forex trading.
Key members of the team include Roman Shirokov (CEO), Evgeny Tarasenko (CTO), and Vyacheslav Kasatkin.
LIQNET was incorporated in 2015. The company is registered to an address in Singapore (10 Maxwell Road, Singapore).
LIQNET Conclusion LIQNET is a cryptocurrency exchange that aggregates liquidity from a number of different exchanges across the internet. The goal is to reduce the bid/ask spread while offering users the highest liquidity across multiple order types and markets. Right now, LIQNET is in the early stages of launch. The exchange is not yet available online, although a desktop and mobile app are preparing to launch in the near future.
submitted by Sl1mXgod to u/Sl1mXgod [link] [comments]

Binary Options Trading: What You Need To Know

Binary option trading is a relatively new development in the retail trading world. Five years ago, no one had even heard of it.
Since 2012 however, the popularity of binary options surged as a result of aggressive marketing by binary option brokers, and the promotion of binary trading software by the trading "gurus".
Right now, interest on the topic continues to grow at record levels. Given its current popularity, binary options are likely to be the first "asset" that beginners start trading with.
However, just because something is new and popular... doesn't mean it's worth doing. (Who remembers the fuss over bitcoin trading?)
Opportunities come and go all the time in the retail trading space... and it's important for us to tell the difference between sustainable business models and short-lived fads.
So let's take a moment to examine binary options, and see if it's something we should be paying attention to.
But before we do that, let's first take a quick look at traditional (i.e. vanilla) option contracts.
VANILLA FOREX OPTIONS
Traditional option contracts were initially introduced for people to hedge against future uncertainty.
For example, a German company selling cars in the United States would worry about high EUUSD exchange rates in the future.
Why?
Because then they would be getting revenue in a weaker currency (USD) while having to pay expenses in a stronger currency (Euro) in their home country. This results in a significantly lower net profit, or even worse, a net loss.
Forex option contracts were thus introduced to solve this problem, as any losses stemming from currency fluctuations could be offset by profits made from buying options contracts.
To continue with the example, the German car company may choose to buy EUUSD call options, which would profit from an increasing EUUSD rate. Thus, any operational losses in the future (due to a high EUUSD rate) can be offset by the profits gained from those option contracts.
This is, and continues to be, the main purpose of Forex option contracts.
Now of course, in order for the German company to buy call options, someone has to be willing to sell it to them.
Perhaps, a financial institution in France does not believe that the EUUSD will continue to strengthen over the next 12 months, and so is willing sell call options to the German company.
(This, by the way, is how financial markets work. Participants have varying views of the future, and so trade against each other in line with their own expectations.)
In this transaction, the German company pays a fee (in buying call options) to protect against future currency risk, while the financial institution gets paid to take on that risk.
To summarize:
- The German car company looks to limit future currency risk by buying call options - The financial institution (or speculator) collects a fee from selling call options and assumes the currency risk 
More generally:
- Option buyers pay a fixed fee for the potential of a very large profit - Option sellers collect a fixed fee for the potential of a very large loss 
FOREX BINARY OPTIONS
In a vanilla option trade, the buyer does not know in advance the amount of money he stands to win. Similarly, the seller does not know in advance the amount of money he stands to lose. The amount is ultimately determined by how far the market price moves.
In a binary option trade however, the trader will know in advance the exact amount he stands to win or lose, before taking the trade. Binary options are named as such because there are exactly only two possible outcomes: you either win a fixed amount, or lose a fixed amount.
Binary options ask a simple question: will the price be above [price level] at [time]?
For example: will the EUUSD be above 1.3000 at 4.30pm? If you think so, you buy the binary option. If you don't, you sell.
That's pretty much all there is to binary options.
UPSIDE OF BINARY OPTIONS
As you can see, binary option trading can be simply explained and is easily understood. This is a big benefit to new traders, as they can quickly learn the basic mechanics and start trading right away.
A related benefit of this, is having to make fewer trading decisions.
In spot forex trading, for example, one has to decide:
- Where and when to enter the market - The appropriate trading lot size to use - How to manage the trade - Where and when to close the trade 
In binary option trading however, there are only 2 decisions to make:
- Whether the market price will be above a certain price level at a certain time - How much to risk on the trade 
As such, binary options offer a much simpler trading process. You don’t have to think about (or calculate) leverage and margin at all.
And, since the potential loss on each trade is fixed, you will never get a margin call.
Lastly, options offer traders the unique ability to make money by predicting where prices will NOT go. (This goes for all types of options, not just binary options.) This can’t be done in the spot Forex market.
So… does binary option trading sound good?
Sure it does!
Well... at first glance, anyway.
Now let’s take a look at the downsides of binary option trading. These are the things your binary option broker won’t tell you.
DOWNSIDE OF BINARY OPTIONS TRADING
The most obvious downside of binary option trading is the lack of flexibility.
For example, if the market price moves even one pip against you upon option expiry, you’ll lose your entire stake. You can’t choose to defer your trade exit under any circumstances.
Also, with some binary option brokers, you can’t change your mind and close or modify a trade before expiry. In this sense, a binary option trade is typically an all-or-nothing proposition.
These points on inflexibility can be summarized by the following comment (found in the Forex Factory forums):
"I once traded a forex news item where I closed a wrong call with a 20 pips loss, and ended up making 350 pips on the reverse trade, giving me a net profit of 330 pips. This scenario cannot be replicated in binary options.”
Lastly, the value of a binary option is fixed between 0 and 100, with the broker charging a bid-ask spread and often, a commission as well. The implication of these factors is that the average loss per trade will always be larger than the average profit. This is a structural (i.e. inherent) characteristic of the binary option game.
Thus, in order to break even, a binary option trader would have to win at least 55% of the time. Compare this to spot Forex trading, where a trader can be profitable by winning just 40% (or less) of the time.
MY PERSONAL OPINION
On paper, binary options are an opportunity seeker’s wet dream.
The promise of regular fixed payouts and a focus on short-term profits are exactly the characteristics that appeal to people looking for a quick buck.
Unfortunately for them, what feels good in trading is typically a losing approach.
You see... the only way to keep making money with binary options is to accurately predict market prices at least 55% of the time, AND get the timing right. This is an exceptionally difficult feat to accomplish.
In other words, you can correctly predict future market prices AND STILL LOSE because you got the timing wrong by a few minutes.
HOWEVER
All this said, there may be a genuine opportunity here… and that is to be a seller of binary options.
Why? Because it’s a lot easier to estimate where prices will 'not go', rather than trying to predict where it will. Whenever the market settles at a particular price level, it is not settling at a dozen other price levels.
Does this make sense?
This root concept may then be expanded to form a complete binary option trading strategy that you can use.
Note however, that this is a benefit available to all types of options, not just binary options.
SO, ARE BINARY OPTIONS JUST A FAD?
One reservation I have about binary options is that they do not serve a major commercial purpose. Unlike the spot and derivatives markets that serve to benefit society, binary options exist solely for speculation purposes.
In other words, it can be reasonably argued that binary option trading is not much different than a casino game.
Without a commercial purpose, binary options could be banned tomorrow and not impact anyone else other than the brokers and speculators.
Compare this to spot Forex trading, or Forex futures trading, upon which global commerce relies. These markets are unlikely to be closed or banned, because they serve a useful purpose beyond speculation.
As a retail trader for the past 10 years, I’ve seen all sorts of gimmicks and fads come and go. Some years ago, expert advisors were the hot topic. Slowly but surely, people are now gradually realizing that "automated trading" isn't as amazing as it's cracked up to be.
Will binary options follow suit?
My opinion is yes, I think they will.
Binary options do not provide any major benefit to serious traders, and I think that once the opportunity seekers get bored or lose enough money, they’ll lose interest and turn their attention to the next shiny object.
WHAT DO YOU THINK?
So... do you particularly agree or disagree with any of the points I’ve mentioned? Did I miss mentioning any important points?
Let me know what you think!
The original article is published here
submitted by pipmavens to investing [link] [comments]

[Serious] Is Ameria screwed either way! Which senario will it be? I will let you choose. Leave a comment describing which one that you believe will happen and why? Or do you have an alternative theory. Or even disagree.

poster: Lavinster, original conspiracy link

Warning this is a Serious Thread: No Bullying, Please let people express their thoughts with out the fear of being abused. I will ask the mods up too keep the peace.

Senario 1. There are two things that could happen and so two senarios to prepare for.
If the government steps back and lets the markets run free, Interest rates will Skyrocket and debt will be wiped out over night. All the banks will go belly up and I truly mean all. You will lose your money and your house is one foul swoop. Prices of EVERTHING would plumet especially stocks and commodities like oil. Every man and his horse would be liquidating shares and property and things to pay back debt, nobody wants to pay huge monthly interest repayment on 100,000 dollars!
Next the government would collapse, all the Troops would come home, every Military Base overseas would shut down, Police, Nurses and Firemen would be laid off in droves. Government pensions would go up in smoke! That includes military pensions too. ..... there is much more but... ill explain the second scenario now
Senario 2. We don't know when this will happen but if the U.S. government decides to do another QE5 then foreigners may panick and dash for gold. This could dry up the physical market in a fucking flash especially if normal people cottoned on. Short term traders who like to flip assest would bid up the gold to astronomical heights.
This would be just the beginning, foreigners would suddenly realise that all those billions of dollars in bonds will not keep up with the price of gold or what ever other precious commodity available! There would be a mad dash for gold out of bonds. Rare commodities like gold, silver, platinum, palladium or diamonds will see its prices go absolutely crazy on the black markets just look at the USSR or Argentina or Zimbawae or Pre Nazi Germany or France three time last century! R
Remember! the chinese were buying iphone 6 phones for $4000 a pop, do you know any rich people in the west who wouldn't wait, these people are absolutely LOADED, foreigners could eaisly buy the worlds gold market many times over. I think china can buy all the worlds liquid gold twice over, and that is JUST china, thats not including the other creditor nations with enormous US dollar holdings.
Finally central banks would be forced not to accept the US dollar to save their own currencys from the insane inflation. The value of the US dollar on the Forex market would absolutely tank.
Americans will see oil prices go to the fucking moon, literally if there was enough trees to print all that cash. War would most likely break out all over the entire whole planet.
Hell, globally the troops around the world are already in fucking position. Every one is already at every one elses border. Except for the stupid countries.
If you want to know how protected your borders are then to asia come to some of the free countries in asia!
~~~~~~~~~ People don't actually believe in this second scenario, it just seems too sci-fi, but if you look back at history this is how it all way goes down when a super power collapses BIG wars happen. Remember Britain? She was a super power too! Right up until the begginings of the 1900's, why do you think every one knows about monty python, a lot of brits fled england after and during WW1. Then Germany had a short go at creating a union of countries starting off buy taking Poland, but the Germans were sick cunts we all know that. Every one helped out and squished them along with the the cruel Japs too!
China and Russia was very thankful to the U.S.A for that but then a cold war broke out between the three that resulted in a lot of mini wars all over asia chopping up korea and nearly taking vietnam.
It was not a loss, it was a draw and its been a stand off ever since. The U.S.A slowly being bankrupted from holding Taiwan, Japan, Okinawas and all of its other 100+ bases all over the world.
BUT the REAL PROBLEM IS!! The situation has just taken a turn for the fucking WORSE!! It has now gone fucking nuclear. America's satelite countries are bringing its nuclear 'Missile Shield' right up to both Russia and China's borders.
I could go on and on and on and on and on and on but basically
Either way we're totally fucked!
Discourse level: 71%
Shills: 0%
submitted by conspirobot to conspiro [link] [comments]

[Table] IAmA: I make $5,000+ per month with Google's Adsense program - AMAA

Verified? (This bot cannot verify AMAs just yet)
Date: 2012-04-16
Link to submission (Has self-text)
Link to my post
Questions Answers
I have $500, I'm also a web developer with all the skills required to do this. I still don't see how you can make money off them? Would the plan be to buy up 1 to start, customise it maybe give it a refresh, fiddle with the SEO then leave it for a month and try to see returns of the $500? Or would it be considerably less? Would the ROI be $500 over 3 months? Whats your usual ROI? For the sites I sell on Flippa (quality, aged, established traffic/earnings) You can expect to buy the site for 30x monthly earnings.
How Do you buy a website that has already got an owner? Is there a website market? Do you approach them? You can email them and offer to buy there website.
Thanks for the fast reply, so the ROI is fairly low... I don't see how you can make money this way without somehow getting 30x more traffic to offset the bad earnings. What's the usual strategy when you buy one of these things? Tweak the ad placement/units, mess around with layouts, tweak SEO.
A 2.5 year return on investment isn't bad at all.
I am not sure why you got downvoted, but I think this will be interesting! If I were to get into something like this, how would I start? Thanks If you have $500-$1000 to jump in with, I'd suggest buying some site so that you throw yourself into the deep end. Start looking through sites at Flippa.com. Since they are established websites for sale, they will be disclosing EVERYTHING. Earnings, traffic, how they get the traffic, etc. These are great examples to get you in the mindset of a web entrepreneur.
I've visited Flippa many times, most of the sites that claim to be making money with the classic "I'm focusing on other projects which is why I want to sell" seem like complete BS to me. Aren't the only people making money the guys selling the sites? Not true at all. I actually sold off my inventory of 40+ sites because I'm literally too busy with other projects. The people who bought my websites are now enjoying the cash-flow that I used to have.
Also, there's pretty much no such thing as a "Set/Forget" website that makes you money. Everything needs some level of maintenance, and every site has the potential to stop making money overnight if google changes it's logarithm.
I'm not very familiar with all of this but it does look interesting. Can you break down what exactly it is you're doing? How are you earning money from this? So you buy up websites, place ads on the sites, and get money from the traffic? Am I getting this right? Spot on!
I looked briefly at one of your links and you said that you work around 40-50 hours a week. My hours fluctuate considerably. Some weeks are 10, some weeks are 50.
Is this something I could do on my spare time if I just wanted a little supplemental income? Can I just do 1-3 websites and monitor them occasionally? Is it a situation where unless you spend a lot of time and money on it, you won't see results? I started my business part time while I was a full-time student with another part-time job. You can easily start up with 10 hours a week. Just depends on how big you want to go with it.
Will you be my dad? I'm probably the same age as you but I think we can make it work. That depends. How hot is your mom? And do I get to have sex with her?
Another internet marketer here - congrats on your success bro. :) I never mess around with search or anything SEO related because I feel like it's too unreliable to rely on Google's (constantly changing) SEO algorithm. Just last month, thousands of people lost their entire income through that BMR debacle. Do you think you'll be able to keep up your income forever? SEO can be unreliable if you are trying to cheat the system. I pretty much follow Google's golden rule of creating quality content for the user, and they have had my back so far with every update.
Can I have $200? What are you going to do to earn it?
Do you have a background in graphic/web design? What niches did you find that pay the best and what the worst? How much traffic do you get a month? How do you market the site and generate traffic? SEO, social media, PPC, etc? Approximately how many hours do you put into the site a week and how long has the site been around? Do you need any additional help? If so would you be open to a possible partnership? No, I actually studied Construction Management in college. - Best paying is like forex, mortgages, foreclosures, mesothilioma (sp?) etc. Worst are education, kids stuff, etc. But it doesn't matter what the niche is, you can still make money in any. And the higher-paying niches have MUCH more competition. - I get over a million visits a month. - SEO, Social Media, no PPC. The sites I buy, I do no marketing since they are already getting traffic. - My main site has been around 6 years. I probably put 10-30 hours a week into it. - Not interested in partnerships. I've got a few employees but don't need anymore.
I own loser.com ...there must be a way to monitize that. Any thoughts? Probably sell it. I'm sure someone will pay a small fortune for it..
I make around $450-$500 a month off two sports forums. Forums are better to get more user generated content. It's usually lower quality, but you get it for free. Forums are also typically harder to monetize because forum browsers know not to click on the adsense units.
Are forums or blogs better for adsense earning? Should I concentrate on bringing in more posters to the forum, or more readers to the blog? Blogs can be tough because you have to do ALL the writing, however you can have higher quality content and probably more clicks since blog readers aren't quite as internet savvy as the interactive forum users.
Fuck dude, did I read that right? One hundred thousand pages of unique content? How much content constitutes a page, on average? Are we talking several hundred word articles? I can hardly think of any sites that approach that size, except social networking sites or forums. Did you create fmylife.com or something? Reddit probably has several million pages of content. Many of the pages are forum threads. Not all the highest quality content.
If I were to buy a site from flippa, for example one of yours (to make things easy), what happens after I 'win' the bid? I get the domainname, the site, the hosting? Do I just need to replace your adsense-ID (and/or others) with mine, or do I have to place them manually? Exactly. You can just replace the adsense ID with yours. You'll have to get your own hosting account, but that is relatively easy. I don't currently have any sites for sale though.
Be sure to look through Flippa for a while to get a feel for what is out there. There's a lot of junk, so it might take a while to find a diamond in the rough.
I'm kinda hesitant about buying one in the first place, I kinda read these horror stories about G banning these sites after the transfer was complete. Just make sure you aren't buying some crappy site. Look for history of traffic/earnings.
How can you tell if they post legit traffic and earnings information? They could pad their stats a lot or a little, or the info could be legit -- but inflated because the owner buys traffic through Adwords, etc. You can ask for access to their Google Analytics account. You can't fake that.
Is that what you usually do when buying a site? Can you describe your due diligence when purchasing? I researched site flipping, domaining, affiliate marketing etc etc ad nauseum a few years ago, but I didn't want to just throw my money away. There's a lot of devil in the details. Also, use SEMRush.com, Quantcast.com, Compete.com, Alexa.com to verify that their site actually gets traffic.
Would you mind to give detailed practical tips to earn a 10th of what you earn? I understand the whole process might be complex, but I am sure there are certain tricks or considerations you could share. Finding a nice niche is the main thing as it appear... What cms do you use? -Where do you host your websites? vps, dedicated server? -Do you consider it "easy" to make a couple hundred a month? I am a computer science student, and I feel comfortable with administering servers, cms and programming. I've been thinking for a long time to start some useful website that could bring me some earnings, and I have a couple of ideas. But when I search for something like what I want to create, it seems everything is already invented, and I am late. One of my "brightest" idea, was to copy the concept of some rather simple foreign website which I liked and create the "spanish" version. What kind of website do you recommend? (forum, social website, a kind of wiki) I prefer Wordpress for sites where I'm writing the content. - You can use any host. If you aren't a high traffic site, then anything will do. - It really depends how you spend your time. - Forums are easy to set up, and once you have a userbase established, they typically grow over time. You don't have to do all the content for forums as well.
People actually click the advertisements on websites? What the hell..... Seriously! Just watch some internet newb surf the net. Literally ask them to google something, and stand behind them silently as they try to figure it out.
What's the advantage to doing this rather than say, buying domains that are typos of other major sites and putting a shit load of ads on them? You aren't really creating any value in the internet by doing that.
My Adsense account has been disabled due to "false clicks" or however they put it. I never clicked on ads myself, and asked for proof, but they have never responded nor have they ever reinstated my account. Have you ever had this issue, and if so, how did you solve it? Create a corporation, get an EIN and use that to sign up again. Or sign up as a friend/relative.
Where do you find outsourcers to write content for your lessor properties? Do you do any SEO at all to your sites or just hope for the best by having great content? Are you a BHW regular at all? I find contractors through ODesk. Some are crap, but sometimes you do find a diamond in the rough. I also don't do much content creation at all.
I do basic SEO things, but other than that I hope for the best with great content.
Don't know what BHW is.
How do you feel about flash game portals? I've owned one for a few years, only spent 2 days making it, and haven't advertised it since. It's only making $5-10 a month, but I've been thinking about upgrading it lately and advertising again. Worth it? Tips? Don't have much experience, but I know that flash games portals typically have low-quality traffic. Unless you are seeing huge traffic numbers, the traffic probably isn't worth a terrible amount.
Did you buy any cool "toys" with your earnings? 2000 BMW M5.
And the rest just sex toys.
I know the best way of getting into it is to jump head first, but what all is required for the maintenance? I'm sorry i'm totally ignorant to how this works but is it programming (more so what language i think it would be html?)? Or do you just alter the info of the website. I've answered this several other places. I'll probably add an FAQ to the body of the post.
Do people ever buy specialty retail sites on Flippa? Or would they only be interested on autonomous ones (drop shipping, etc)? What is the value rate on such sites? All types of sites are sold on flippa. No idea what the value rate is for those.
Can a brotha get a loan? Try prosper.com or lendingclub.com if you are seriously interested in getting a hard money personal loan.
Did you just make this to piss off $500 a month guy? Hahaha, yes, that is what inspired me to do this today. Although I'm not making it up.
How to best estimate what to pay for a website? I found some abandoned websites that I would like to buy, both without analytics and without adsense, but with great content. How to decide what to offer the current owner? Use Alexa.com, SEMRush.com, compete.com, quantcast.com, etc. to estimate traffic then go from there.
So do you just sit at home and make a shit ton of money? please teach me? It is my full time job. Read this thread - there's a lot of info I and others have been sharing.
What is adsense? Google "Adsense"
I apologize if someone has asked this already, but how many unique visitors do you get a month on your main site? Over a million.
I'm going to manage an affiliate program soon. Do you know of any good books with email templates? I'm looking for ideas for contacting potential affiliates. Any information on managing affiliates would be great. I'm in NV also. I don't read any books. Too short of an attention span. When you contact potential affiliates, make sure that you are offering them value and have a customized email. I get emails for affiliate programs all the time and just ignore them because they are either recycled letters or don't fit my site at all.
NV rocks for business!
I've been interested in creating a site about something I am interested in. The only problem is that since I am interested in it, I've found many online resources that pretty much suffice. Is it worth making an online resource (for say, a hobby/sport) when there might already be some decent but not prevalent info out there? Definitely, especially if you can do it better than the other sites. There are 10 google positions on the first page, so even if you have competition, you can still nudge your way in. Also, there are billions of search terms that people use to find different stuff...
Hopefully I didn't get here too late. I could put about $3000 towards a site. How much traffic do you think an average $3000 site would generate and how much would you expect to make monthly doing the things you've suggested in this thread? If you bought a quality site for $3000, you could probably be looking at a starting cash flow of ~$100 a month. You could probably increase it, but there are too many variables so it really depends on what you buy.
What about if you made a domain that was the same as another other than the extension? Ie. "startknitting.com" exists but sucks balls and is out of date. Would "startknitting.org/net" still be a good idea? You'd probably run into some legality issues there. I'd start with a different name and then try to blow them out of the water. Will take time though.
All right, I'll bite. I'm a graphic/web designer with far more coding experience than I'd like, and in that same vein I've ended up spending a good chunk of my time on SEO/staring at traffic graphics. How easy would it be for me to buy a site, flip it, and start earning money? Given that you already have the skills, pretty good. My strategy was never to buy/flip. It was always to buy/hold, but eventually I decided to change that strategy to just holding onto one site.
Is there any particular industry I should be looking at for this venture? Or is it just "pick whichever site looks promising?" This wouldn't be something I'd want to focus on full-time, but I'm a freelance designer so I would be able to allot hours to work on it between projects as needed. What does typical maintenance work look like for you? Pick something that looks promising, and also something that interests you at least somewhat.
What do you have to learn in order to start out doing this. Like, which books, websites should one read/study? I just jumped in head first. Learned along the way.
I never read books. Just figure stuff out as you go along - Googling things works best.
Could you explain what affiliate links are? For example, a link to a product on amazon with my Affiliate ID on it. If you click it, and then buy that product, I get a commission.
Could you please draw and post an image of how you have your google ads placed around / inside the content. Also, what link color schemes do you find works best? Color schemes that match the site are best. I typically put my adsense units in the top left, above or in the middle of the content.
I have an established (10 years) useful user-generated content site that gets ok traffic (1500 uniques a day) but only generates 800-1000 a month between AdSense and TextLinkAds. I've had no luck whatsoever with Affiliate programs, very few clicks and no sales at all, with thousands of views. Any advice to increase my earnings? Take a look at the FAQ. I don't give personalized advice. I've already answered questions like this all throughout the thread.
Are you, by chance, a local mom? Hahaha, nope. I see those scammy biz opp ads all the time too. Freaking gives making money on the internet a bad name.
Can you give an estimated "$/pageview" on some of the sites you've had ? :) All over the board. Sometimes a fraction of a cent, sometimes 10 cents.
Do you need to live in NV to have an S-Corp in NV? You should be a resident or else it might look suspicious.
Wait, isn't it against the Adsense TOS to say how much you've made? Already answered this a dozen times.
Do you actually make/work on/improve sites you own (other than your blog) to make money or just buy sites that are already making money? Yes, I work on my own site.
Spare change? Can you do a dance for me?
How do you actually make money though? Sorry i just wasn't sure by what you wrote on your blog/ Google "Adsense"
Are you a single mom that earns $5,000 a day from Google? Stay at home mom.
So every once in a while someone comes along and says "hurr durr guys I make X thousand dollars / month off ads". "Invest Y thousand dollars and get 50% return within months!" How full of shit is this on a scale of bullshit to horseshit? I don't see where I said anything about investing...
I didn't say you did. I'm not sure I understand what you are asking then.
Other than buying a site, are there other significant costs involved in getting started right away? Time!
How do you get a website to the top of the google results? SEO.
Can I get my friend to write me a script or code for this? Not sure if troll Or just extremely lazy.
Would I be able to sell my site, DominateDominion.com for anything? Getting tired of the game. It has a sponsorship from the creators of the game for weekly tournament prizes if that increases the value. Check the FAQ. I don't offer personalized advice. You could try listing it on Flippa.
Alright, well are the sites that claim to value it accurate at all? Hit or miss. Sometimes they get lucky and happen to be correct, but otherwise are pretty outlandish.
These are almost as bad as the "what you need, when you need it" spam sites. Thanks for polluting the Internet with your shitty web sites. That is not at all what I do. I actually run a very helpful online community. My success is partly attributed to the fact that my site is extremely helpful for people.
You may be able to fool some people with that description, but it's a load of crap. These sites are, in your own words, "hands-off" and "auto-pilot". I'm willing to bet the content of most of those sites have changed very little, if at all, over the years. How does that make it low content?
Have you ever thought of of shoring yourself and your employees to increase profit, there is some great talent out there in parts of the world where the average wage is significantly lower than the US. I've used some overseas contractors with limited success. I do business primarily in the US, so going overseas would just complicate things in terms of taxes.
He got downvoted because he's a parasite. It is SEO at its basest, simply there to make ad revenue. Microsites provide nothing of value. I don't have any microsites. Thanks though.
Um, you might want to watch out. It's against the TOS to post your adsense earnings, and with those exact figures it's fairly easy for them to trace it back to you.. Last thing you'd want is your adsense account blocked because of this :) Do some more research. You can't post more details like the click-through rates, etc. It is perfectly fine to share your total earning dollar amounts.
As a 14 year old, AdSense is also my main source of income. I'm pretty sure they don't want us to disclose how much we make, but it's great that someone my age can make money on the internet. I get it through YouTube, personally, but it still pays with AdSense. Nice man! Its great to see kids doing something productive! Don't let it get to your head though. Stay in school. Enjoy your young age.
I don't mean to be a party pooper, but 3 friends of mine were making $20-30k/mo on adsense per month, one day Google changed their rules and they are now ruined. Just be prepared, don't count on this success for life, and save money. Thanks, but Adsense only accounts for about 20% of my income. I'm also not doing anything sketchy or against the rules, so I'm not too worried about it.
Looks good man. I was making $2k a month up until 2 months ago when my adsense got banned. Some guys who I had a bad business deal with decided to sit there for hours and click my ads over and over. This turned into google thinking that I was cheating the system and banning me :( Sucks! Try signing up again under a different EIN.
How do you build sites with user generated content. Perhaps give us an example, real or made up. The tools you liked are good for proving and tweaking, but making something that generates its own content seems difficult, and key to the process. Reddit.com....
I'm currently making ~$400 in a small niche where I have the #1 position. Any advice on scaling (general advice) in an attempt to get rich like a playyaaaaaaaaa. Rank #1 for more keywords! Go broader.
Congrats srnc! I'm very pleased for you. I wish I was pulling in that kind of revenue. I have a site that does about $10 a day with a .23 click rate. If I could get that up to 5% I'd (theoretically) be doing $200 a day. But I've tried everything and it's just not an Adsense type of site I guess.. The only advice I have is to move your adsense unit around, try different sizes and different colors.
Man, I have tried everything, including compete site redesign. This is a site I developed myself, so changing look and feel isn't easy.... I just don't think it's an Adsense site.... Might not be. Try some CPA offers or affiliate promotions?
I think you broke Google's Terms of Service by telling us all this. Nope. Look more closely. You can't share some of the finer details... clicks, impressions, CTR, CPM, etc.
In before the next dot-com bubble bursts. Hurry! Why do you think I'm selling everything?
there was spam, now there is googleadsense, and a labyrinthine expanse of well-indexed garbage websites that clutter the google results. Using google now is like wading through a septic tank filled with liquid waste and floating shit so that parasites like 'srnc' can have their little payday. Not at all true. My main site is an authority site because it has been providing quality content to visitors for years.
'Quality content' produced by others, for you to exploit and parasitize. Someone is a little jealous!
Is reddit exploiting and parasitizing the content you create for them?
Sorry mate, you've already described your modus operandi in how you acquire these websites and set them up as cashcows/google clutter. There is no real contribution that you make, or any added value to be found in your net activities. You're basically the equivalent of a spam-sheister. Again, jealousy/ignorance coming through. You have no idea what I do and are just upset that I make more than you do.
Money for nothin' and chicks for free. False on both counts.
Nice try, google ad. = . = I can't imagine that Google is trying to spam Reddit...
I make you zero money by blocking ads. Ask me how! Oh fuck you, just use adblock plus. Thanks. Glad that not many people have that. However my affiliate links which make the bulk of my money are never blocked by your addon! Muhuhahahaha.
Commenting to come back later cause im stuck at work, and want to learn how to make 5 grand a month doing this shit. Cool. Be sure to read through this thread. Already answered a LOT of questions.
Keep working at it. Join us at the 4-5 figure daily profit club. It's pretty damn nice. Think more affiliate related stuff for expansion. Thanks man! I want to hit 1M/year soon.
Could you go into more detail concerning the SEO work. This seems like the most important and time consuming aspect of making a website get the traffic it needs. I just do basic SEO stuff with my main site. Keywords in the title, fresh content linked to from the home page, etc.
Last updated: 2012-04-20 22:59 UTC
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[Table] IAmA full-time Bitcoin day-trader, blogger, and explainer. I was a pro TCG player. Here until Midnight EST. AMA!

Verified? (This bot cannot verify AMAs just yet)
Date: 2014-02-20
Link to submission (Has self-text)
Questions Answers
Let's say someone was looking for a stay at home computer job, would you recommend doing what you do? Is it something you can hop into, or is it something a lot of time must be put into before considerable income comes? You handle risk and pressure well, and you don't let your emotions guide your decision-making. Professional Poker and TCG players often develop this skillset.
You have experience working with stocks, bonds, derivatives, foreign exchange, or other financial instruments. If you have a strong mathematical background, that would also likely fulfill this.
You can invest significant capital into trading while remaining financially secure if it all suddenly vanishes.
You are capable of constantly monitoring a situation, waking up in the middle of the night if an alarm goes off, etc. It requires serious dedication.
You are good at keeping up with news, understanding market psychology, and "feeling" shifts in attitude and perception among other market participants.
Of those, I'd be most cautious if you don't meet no. 3. Going bust is a real possibility--day-trading a volatile commodity is inherently extremely high-risk. Nos. 2 and 4 are the easiest to learn or force through routine. No. 1 requires a person who approaches things in an emotionally detached manner. No. 5 is something that comes with investing enough time.
Second question: I'm answering this after that big block of text because this answer will come off like a get-rich-quick scheme. Yes, you can hop into it very quickly, and you can start making very high profits very quickly. I put in a small initial investment to test the waters, and made 10% on it in a few days. If you have the right skillset, composure, and resources, yes. It is a potentially very lucrative and exciting stay-at-home job. It is not for everyone, though.
As much as it would be beneficial for me (being in the industry and all), to tell everyone it's easy and that it will help them provide for themselves I feel that people need to know the real risks that are involved. Regardless, that's all a little irrelevant. We're not playing the house, and we're not flipping coins. We're playing other investors, and we're making actual decisions. You keep saying things like "98% lose money" and "Go onto any FOREX forum, and you will see from the users posts that they pretty much all lose money" but you don't back it up. Cool, yeah, it's a zero-sum game with a rake: a little more than half of the players will lose. That's expected. They'll probably complain about it, too, huh?
Retrospect can have a very positive effect. Got any real account trading statements I can have a look at? Let's see how fast you can come up with excuses not to show me ;) I only have and need one: I have chosen not to disclose my personal valuation for privacy reasons. Same reason I've had all along. I instead publicly disclose my trades, as they happen, on my website. The posts are timestamped, and the ones that are the start of a position contain the price I entered at. Go check the posts, then go check the charts, then go check my archive. But feel free to continue to arbitrarily call my credibility into question--that makes your argument better!
What leverage do you use? In Australia the leverage is typically 100:1, perhaps that's why your not seeing how risky I deem it to be. First, our argument so far has had nothing to do with risk. Second, I told you I am leveraged 2.5:1, two posts ago. Third, you realize I'm trading Bitcoin, not ForEx, correct? And that no one in their right mind would offer 100:1 leverage on Bitcoin due to its volatility?
What's your last year's hourly salary? A year ago I was finishing up college and extricating myself from the TCG business I'd co-founded. I took very little in take-home pay over that period, but kept part ownership of the continuing business. Money isn't just about the number on your bank account--it's also about residual future income.
How many hours a week are you typically on a computer? On a computer, probably 50-55, if you add in time I spend on my phone, I'd say 65-70. Day trading takes constant watchfulness. I imagine it's like an easier version of taking care of a baby.
What are your favorite to sources of news besides waiting for it to get to the front/hot page of /Bitcoin when it's several hours old? I have an IFTTT for /BitcoinMarkets and /Bitcoin that notifies me early on about some posts.
What's the weirdest thing about your mom? She started a bookselling business online in her 50s and makes more money than me.
Or.
She's a little old lady who loves gadgets and technology.
What are your thoughts on Dogecoin and other bitcoin competitors? Do you think any have staying value? LTC.
DOGE.
NXT.
VTC.
Coins that offer something different or that have a strong community to them can be valuable prospects.
LTC is the first-mover scrypt coin - DOGE has the most non-techies interested in its success and is spreading quickly as a result - NXT is a cool generation two coin that has a lot of features BTC doesn't have - VTC is ASIC-resistant
Ok, let me spell it out to you. The retail forex market only makes up 5% of the total forex markets liquidity. The other 95% is from hedge funds and institutions. Therefore, 99% of the retail market losing their money is very possible, as that only makes up 4.95% of the whole market. Is it possible that 4.95% of the market generally loses? Yes. How is that infeasible? Nope. That's a false equivalence. It is possible that 4.95% of the market loses. It is not feasible, that, say, 99% of people with blue eyes lose. What, exactly, in empirical terms, is the difference between retail investors and hedge/institutions that causes this INCREDIBLE disparity? Would you care to respond to my above empirical argument that demonstrates that a zero-decision system is flipping a losing coin? Do you consider it feasible for 99% of people playing a 45-55 game to lose?
Are there options and/or futures markets for Bitcoin? Not really yet, but there will be more prominent ones soon. I hear about a new one pretty regularly, it seems, but nothing that seems truly legitimate has come out. I'm certainly excited for them, though.
Eventually, once Mr. Lawsky and co. get things sorted out, I'm certain we'll see a big-name investment bank start offering them.
From the time you started trading until today, what is your overall percentage return? In USD, my percentage return calculated from investment to current valuation is about 300% over a little more than 2 months.
In BTC, my percentage return calculated from investment to current valuation is about 425% over a little more than 2 months.
Using my average per-coin buy-in price, if I had just bought-and-held, I would have lost about 27% of my initial investment value.
Ben, i told you I'd be here and asking about Hearthstone first. If there's one class that needs a bit of tuning, up or down, which is it and why? I think Mage needs basic, class-level tuning. I'm not sure what needs to be done exactly, but I don't like what the Mage class power does to gameplay. I've thought some about how different it would be if it could only hit minions, and I'd want to know if Blizzard had tried that out. The Mage power is too versatile, and over the long-term I think it will prove to be problematic.
What's your favorite card? Lord Jaraxxus is my favorite card. He has a truly legendary feel to him when you play him, but your opponent can still win, even though he's very powerful.
So, where do you think we go from here? I'm currently short, but I don't expect to be so for a lot longer. I don't think we'll get past 550. I also don't expect this drop to hold on for a really long time.
I haven't seen a good, substantive rationale for what the MtGox situation really has to do with Bitcoin price. Yes, it looks bad, it certainly doesn't help with our legitimacy, but is it really worth the incredible price declines we continue to see? I don't think so. I think we are seeing these impressive declines because the price on MtGox (which is a reflection of trust in MtGox relative to Bitcoin price, not just Bitcoin price) has been declining heavily. I don't expect it to continue forever, especially not with things like the Winkdex and the accompanying ETF launching.
MtGox is basically dead to me, for now at least. The sooner everyone stops paying attention to it, the sooner we can all get back on track, which I, for one, will be quite happy about.
Do you think that it's a good thing for a game when the developers of that game discourage certain playing styles (e.g. mill decks or decks that try to win in unconventional manners) whether in hearthstone, MTG, or other TCGs? It can be. I don't want the developers metaphorically over my shoulder outlawing strategies, but I don't mind if the strategies that are "less fun" for your opponent (Draw/Go, Mill, or Hard Combo from MTG, for example) are also less powerful. Most players prefer a game where the best decks are also among the most fun, because it means that they are playing against fun decks more often. Clearly the 2-cost 3/3 will be played most often. If you fix this by making both 2-cost guys 2/2s or 3/3s, or by making one a 2/3 and the other a 3/2, then you've done something--but it's not that interesting. If you instead make the 2-cost 2/2 have text that says "While you control the 3-cost 3/3, this gets +2/+2" and you give the 3 cost 3/3 text that says "While you control the 2-cost 2/2, it has Taunt" you now have more complex cards that reward players for doing something other than just playing the best stand-alone card.
Which do you think is a better option to encourage diversity in TCGs; improving/buffing cards/decks that hardly see any play versus weakening/nerfing cards that are overwhelmingly played? This is obviously a very simplistic example, but I hope it makes the point. Games are more fun when you give players more relevant choices: buffing and nerfing cards tends not to do that as well as promoting synergies does.
Where/what is the actual money behind bitcoin? If it does exist. You might need to rephrase your question for me to understand what you're asking. If you're asking why a Bitcoin has value, the answer is the same as any other good: because someone is willing to pay it.
If you're asking why someone is willing to pay that amount, my answer would be utility.
I just got started on Bitfinex (using your referral link) and am a little intimidated. What types of trades would I recommend I try as a beginner? From there, just keep careful watch, and see what happens. Be neutral and objective toward your own hypothesis, just like in science. Don't be biased by your hopes, be focused on the reality.
So far I've only done a liquidity swap offer to try it since it seemed (nearly) risk free. Have you done any liquidity swap or is it too low in profit? If I'm not going to be able to check my computer for a day or two, or I'm uncertain of what's going to happen the next few days, I do use the liquidity swap function. It's actually very profitable, relative to traditional investments. And you're right, it is low-risk. I'm a fan. Good job selecting it if you were intimidated--that's a good place to start. As far as actually starting trading, do science. Start with a hypothesis. If you were up at 5 AM today when MtGox published their announcement, a good hypothesis might have been something like: "This announcement is going to be a blow to their credibility, and might panic the markets. We'll probably drop by some amount as a result." Invest based on it, figure out around what price you want to take profits, and at what price you'll cut your losses and get out. Stick to those determinations unless something substantive changes. The time you tell yourself you can afford to not close your position because it will "rebound" back to where you want is also the time you lose your shirt.
Is it true that you like Balloons? No, I <3 them.
Lol to the question about your mom... Ben, from my understanding Bitcoin is anonymous, does this mean that you can avoid taxation when receiving payment? Bitcoin isn't anonymous. That's actually a common misconception. It's actually pseudonymous, like Reddit. You end up with an online identity--a wallet address--that you use with Bitcoin.
If I walk up to you on a street corner and buy Bitcoin with cash, then I'm pretty much anonymous. If I buy it from a large institution like Coinbase or some other company, they will have records of the address my Bitcoin was bought for. As a result, you can trace them down, generally speaking.
As for avoiding taxation, that's a general no.
What do you think Bitcoin's biggest hurdle is and how do you think it can be overcome? Are there any misconceptions about Bitcoin that you think people have? The biggest hurdle for Bitcoin to overcome is governments. Governments have a variety of reasons not to want an alternative currency. We seem to have done pretty well on that front here in the US, but for other countries (China) that is not the case. Past that, the other major hurdle is something I consider an inevitability: consumer adoption. Business adoption has begun in earnest, consumer adoption hasn't. It will when enough businesses take Bitcoin to give it sufficient utility for the average customer.
What trading platform do you use to daytrade Bitcoin? What is the standard margin that Bitcoin brokers offer? what's the typical ask/bid spread? I primarily use Bitfinex.
Very few Bitcoin brokers currently offer leverage, Bitfinex offers 2.5:1. Over time, I anticipate it will become more like current Forex, where 10:1 or greater leverage is common.
It varies by exchange depending on their fees. Huobi charges 0% fees, so their spread is generally tiny. Some exchanges can be as wide as 1.5%. Typically, I see spreads between .5 and .7%.
Do you invest in any other type of cryptocurrency? if so, which is your favorite besides bitcoin? I currently have no other holdings, but I've held DOGE and LTC at points and am considering VTC and NXT. DOGE is probably my favorite, because if the community can keep this up for a little longer it will snowball into amaze.
Can you trade me a Jace? TMS WWK, TMS FTV, Beleren, MA, or AoT?
Beleren. M10, M11, LOR, JVC, JVCJPN, or Book Promo?
M10 and if not possible then M11. Sure.
I've been reading your blog for quite some time and especially like your summaries for recent events. Keep up the good work! Do you use strict stop-loss orders for your trades? When do you decide to close a trade? Especially in situations where you can basically see you profit/loss grow by the minute. When is enough? Do you have a longterm bitcoin investment you don't touch or do you use everything you have for trading? I do use relatively strict stop losses, but they're not stop loss orders. My conditions usually aren't just the price hitting a certain point, but instead it sustaining for a brief period, or hitting it with a certain volume, or with a certain amount of resistance to retreat. I don't want my stop loss to be triggered by some idiot who dumps 300 BTC and temporarily drops the price 15, but only ends up really dropping it 3. I am very strict with myself about this, though, generally speaking--if I can't trust promises I make to myself, what good am I?
Let's say for example you have a sum x dollar and a sum y bitcoin on your trading account. How much % of x or y do you risk at every trade? I've seen a formula for the max. amount of investment and read numerous times that traders shouldn't risk more than one or two percent of their "bankroll". Do you generally have dollar and btc or just one of them at any given time? 100% of funds in every trade, so long as all funds are easily moved into the position. Common exceptions are lack of liquidity and funds being on other exchanges. My reasoning for being all-in all-the-time is that it's a profit-maximizing move. It is also risk-maximizing. My risk tolerance is infinite; most people's isn't. Only ever one. Generally BTC if I'm long, dollar if I'm short. I prefer to double-dip, as otherwise it would be in contradiction to the 100% plan. I use everything I have for trading. Again, profit-maximization, infinite risk tolerance.
I decide a closing price when I'm near either my stop loss or my profit aim. I place a limit order or multiple limit orders wherever I need to. I avoid market orders whenever possible. Enough is when I hit my goals or my loss tolerance. I decide these at the start, but I frequently re-evaluate them as news and market conditions develop.
What is a typical bid/ask spread for Bitcoin? It depends what exchange you're looking at, but generally .5-.7%.
What's the best way to popularize Bitcoin among the masses? Add your own but would love your thoughts on: -microtransactions developing nations -gift economy (tipping) I would suggest just running around shouting "You get to be your own bank" is probably the best way.
In all seriousness, though--we don't need to try. It's going to happen on its own from now on, as the news media slowly starts to pick up the story. People will start appearing on TV talking about it with more and more frequency. Things like the Dogelympic teams are great PR and help boost it up, as well, of course, but in general it's just going to follow the adoption curve of every other technology.
If it picks up in a few developing nations that have stable internet, it will be a massive revolution for them. Self-banking can do a huge amount of good for an economy like theirs. We might see reports on that. If a major newspaper decides to run a permanent paywall like what the Sun-Times tested recently, that could be big as well. The slow PR from tipping on Reddit is another way, to be honest. Every bit helps, but the cryptocurrency community is now large enough that we're going to do a significant amount of organic, word-of-mouth style growth.
Do you think that a magic game could beat harthstone? If they do a good job, absolutely. They have to focus on the right things. It needs to be mobile-available, easy to pick up and play, and fun.
Is there a good crypto currency to get in on now, before it explodes like bitcoin did? There are plenty of options. Check out coinmarketcap.com. Fair warning, there are plenty of horrible things there--treat it kind of like penny stocks. I like BTC, LTC, DOGE, NXT, and VTC.
Also, why is it such a pain in the ass to buy them with actual money? Like you have to have bitcoins to buy other crypto currency. It's such a pain to buy them with USD because no one has made a good system to do it on, like Coinbase. If you think there's a desire, go do it!
Well the way I look at it, is how the hell else would you be able to buy them? Not everyone has piles of bitcoins lying around and I really don't want to spend $600+ on a single bitcoin just to buy some other currencies. Ah, I see the problem! You can buy fractions of a Bitcoin using Coinbase--I think .01BTC (~$6) is their minimum.
The March 2013 appreciation was from American and European investors and November 2013 was mainly from Chinese investors. Which group of people do you think will be the next to buy (I hate using the word invest when talking about bitcoin) bitcoin for investment purposes? American institutional and hobby investors. That is, Wall Street and people who pay attention to Wall Street.
Which do you think will be a better long term (~5 years) investment, Bitcoins, Litecoins, Dogecoins, Fetch Lands, Shock Lands, or Original Dual Lands? Does it change for ~10 years? Either Bitcoin or Fetch lands for 5 years. For 10 years, Bitcoin. I'd be worried about the 10-year view for paper MTG.
Ive been mining Bitcoins for years now, i have a good sum im my wallet but i never plan to use them. Does this make me a bad person? Approximately yes.
Ben, I should've simultaneously copied and pasted all of my questions from the Spreecast over to here but here are a few... It seems like the conspiracy crowd has really latched onto the idea of Bitcoin as being a discreet form of currency. If Bitcoin is backed up by the internet why would people choose having a currency that's being tracked over say cash, gold, different commodities? Having a currency be tracked has negatives and positives, but it's overwhelmingly positive for the average consumer. Because it's tracked, you don't need to pay someone to move your money for you. There also are no chargebacks, which means merchants aren't getting scammed and passing those costs onto consumers. Theft costs everyone money. It's also very fast--transactions confirm in just 10 minutes, regardless of size or where it's going. Transferring dollars from here to China is very difficult--transferring Bitcoin? Just as easy as from anywhere else to anywhere.
My job is a mix of voodoo, intuition, science, and news. In USD, my percentage return calculated from investment to current valuation is about 300% over a little more than 2 months.
No, just gambling. In BTC, my percentage return calculated from investment to current valuation is about 425% over a little more than 2 months.
Anyway, how have the profits been from start to finish compared to the market? Using my average per-coin buy-in price, if I had just bought-and-held, I would have lost about 27% of my initial investment value.
Are you willing to disclose how much you have in your trading portfolio/what kind of profit you turn both % and $ wise? In USD, my percentage return calculated from investment to current valuation is about 300% over a little more than 2 months.
In BTC, my percentage return calculated from investment to current valuation is about 425% over a little more than 2 months.
Using my average per-coin buy-in price, if I had just bought-and-held, I would have lost about 27% of my initial investment value.
What would you say is the easiest method of shorting bitcoin or any other coin? For shorting Bitcoin or Litecoin, check here.
For other coins, there isn't really a good way yet, to the best of my knowledge. A few exchanges have plans to add short-selling, but Bitfinex is really the only one I know of that has.
What did you have for breakfast today. Didn't breakfast, was delicious.
Hey Ben, I know next to nothing about Bitcoin. I went to /bitcoin after seeing this AMA on your FB, and I noticed that everyone is going apeshit over "Gox". I have no idea what that means or why everyone is so sad/angry/suicidal. MtGox (which originally stood for Magic the Gathering Online eXchange) was the first prominent Bitcoin exchange. They've been going through some rather rough times lately, some of which I was an early cataloguer of here. In short, everyone is freaking out because the exchange may be insolvent. It's not really a big deal to Bitcoin as a whole, but it's certainly an obvious blow to credibility. In my view, people are primarily upset because MtGox has been a part of Bitcoin for a very long time, and it can be hard to let go of what we're used to. I expect that they will either fix the issues or will go out of business officially very soon.
Please explain what happened.
Tell me every artist in your iTunes. Daft Punk, detektivbyrån, Kid Cudi, Matisyahu, The White Panda.
Spotify for life, yo.
Follow up question, what % are you in BTC vs Fiat and when you are on the losing side of a trade do you find your self dumping in more to get right or do you pull the cord Unless my positions are on different exchanges or in different coins, they're all always 100% of what I'll put into that trade at entrance and exit. As a result, I end up with a binary choice: stay or reduce/close. I very rarely reduce position size, nearly always preferring to just end the position instead.
Last updated: 2014-02-25 04:57 UTC
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Forex: Bid and Ask Trading Forex - Bid and Ask price, pricing for the Forex ... 01 The Bid and Ask Price in Practice - FXTM Trading Basics ... What is Bid, Ask Price and Spread in Forex Trading - Hindi ... Basics of Bid price and Ask price - Foreign currency ... 89. Forex Trading - Understanding the Bid/Ask Spread Dealing with Bid/Ask Spreads in Forex Trading by Adam Khoo

The Forex bid & ask spread represents the difference between the purchase and the sale rates. This signifies the expected profit of the online Forex Trading transaction. The value of Bid/Ask Spread is set by the liquidity of a stock. If the stock is highly liquid, it means many stock units are being bought and sold, and the Forex bid/ask spread will be lower. Traders prefer foreign currency ... Bid-Ask spread. There are 2 types of currency prices at Forex are Bid and Ask. The price we pay to buy the pair is called Ask. It is always slightly above the market price. The price, at which we sell the pair on Forex, is called Bid. It is always slightly below the market price. The price we see on the chart is always a Bid price. Ask price is ... Bid and Asked: ‘Bid and Ask’ is a two-way price quotation that indicates the best price at which a security can be sold and bought at a given point in time. The bid price represents the ... The bid-ask spread benefits the market maker and represents the market maker’s profit. It is an important factor to take into consideration when trading securities, as it is essentially a hidden cost that is incurred during trading. For example, if a security received a bid of $10 and an ask of $11, an investor would expect to lose $1 or 9% of their investment if they bought at the asking ... Like any financial market the Forex market has a bid ask spread. This is simply the difference between the price at which a currency pair can be bought and sold. This is what accounts for the negative number in the “profit” column as soon as you place a trade. Before we go any further let’s define the two terms, “bid price” and “ask price”. Bid Price – Used when selling a ... A Bid/Ask spread exists in virtually every freely traded market. In currencies for example, if you receive a quote for a EUR/USD currency pair of $1.2750/52, the first figure is the “Bid” price of $1.2750, the second figure is the “Ask” price, and the net of the two, $0.0002, is equivalent to a spread of 2 “pips” in forex slang. In a market that is moving quickly upward or downward ... bid-ask spread; bid-offer spread; or usually just the spread; How to read a Quote . Forex quotes will sometimes just display the bid price, and the last digits of the ask price. For example, if the bid price for EURUSD is 1.1200 and the ask price is 1.1205 the short version will be quoted as: EURUSD 1.1200 / 05. This quote means you can buy at 1.1205 and sell at 1.1200. Looking at it from the ...

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Forex: Bid and Ask

Understand how to deal with Bid Ask spreads in trading forex. Learn how to factor in the bid ask spread when placing trades in forex trading These are essent... A lesson on the two way quote in forex trading referred to as the bid ask spread and what this means to us as traders of the forex market. Loading... Autoplay When autoplay is enabled, a suggested ... 01 The Bid and Ask Price in Practice - FXTM Trading Basics - YouTube. 01 The Bid and Ask Price in Practice - FXTM Trading Basics. Watch later. Share. Copy link. Info. Shopping. Tap to unmute. If ... This video explains pricing for the Forex markets, and the difference between Bid and ask / offer prices. Learn what is BID and ASK price on Forex. Negotiation Skills: Former FBI Negotiator Chris Voss At The Australia Real Estate Conference - Duration: 45:53. The Black Swan Group Recommended for you Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube. In this Video Edward Ji explains, in simple terms, What is Bid Price, what is Ask Price and what is Spread in forex Trading. The video also explains, how to ...

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