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My trading in bitcoin
03 Aug 2021 (289 views)

I trade bitcoin in the COMEX Futures market. Each contract is for 5 bitcoins. It requires a margin of US$100,000 or more. 

The price of bitcoin jumped to a high of US$62,000 in mid April 2021. I did not take any position at that time. I felt that the price was insanely high. There was optimism that it would go up higher. 

Two events caused the bitcoin price to crash. China decided to crack down on the mining of bitcoin. Elon Musk announced that Tesla would not accept bitcoin due to the high consumption of energy in its mining.

When bitcoin price dropped below $40,000, I decided to take a short position in bitcoin. I made many trades.

On most occasions, I closed my position when the price moved up or down $1,000 or more. The impact on my trade was $5,000 or more. It could be a gain or loss for me, depending on the price movement.

The price of bitcoin dropped to $29,000 in late July. During this period, I made a gain of about $20,000 on my bitcoin trades. 

The price trend reversed and went to a high of $42,000 on 1 August. As I held a short position, I saw a loss of $17,000 at the worse point. 

The price dropped again to $39,000, reversing my loss to a small gain of $4,000. It was a wide ride.

I will be holding my short position on bitcoin, as I expect it to go below $30,000 in the next one or two weeks. 

However, it may not happen. Who knows - it may go up to $50,000. Trading is difficult.

Do note. The price of bitcoin has fluctuated within a range of $30,000 during the past four months. This would cause a gain or loss of US $150,000 on 1 contract of 5 bitcoin.

Tan Kin Lian


My trading in bitcoin
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I trade bitcoin in the COMEX Futures market. Each contract is for 5 bitcoins. It requires a margin of US$100,000 or more. 

The price of bitcoin jumped to a high of US$62,000 in mid April 2021. I did not take any position at that time. I felt that the price was insanely high. There was optimism that it would go up higher. 

Two events caused the bitcoin price to crash. China decided to crack down on the mining of bitcoin. Elon Musk announced that Tesla would not accept bitcoin due to the high consumption of energy in its mining.

When bitcoin price dropped below $40,000, I decided to take a short position in bitcoin. I made many trades.

On most occasions, I closed my position when the price moved up or down $1,000 or more. The impact on my trade was $5,000 or more. It could be a gain or loss for me, depending on the price movement.

The price of bitcoin dropped to $29,000 in late July. During this period, I made a gain of about $20,000 on my bitcoin trades. 

The price trend reversed and went to a high of $42,000 on 1 August. As I held a short position, I saw a loss of $17,000 at the worse point. 

The price dropped again to $39,000, reversing my loss to a small gain of $4,000. It was a wide ride.

I will be holding my short position on bitcoin, as I expect it to go below $30,000 in the next one or two weeks. 

However, it may not happen. Who knows - it may go up to $50,000. Trading is difficult.

Do note. The price of bitcoin has fluctuated within a range of $30,000 during the past four months. This would cause a gain or loss of US $150,000 on 1 contract of 5 bitcoin.

Tan Kin Lian