[Steem talk] Understanding Crypto Trading - Episode 9

Today, we are jumping 1 chapter back, will be continue study Part 7 here) why are we bias to HIVE? But before we go any further, I would like to show you I am NOT bias to HIVE at all. It's just how the market behave and it is time for me to fetch some HBD on it's way "UP".

We've been always focusing on buy, and therefore people start to get the idea of why David has always been buying hive? No I'm not, I didn't sell HIVE because market did not go "UP" on the HIVE/HBD exchange, therefore my order did not trigger. However, it's going to change today, because the 0.15 has been broken and we'll have to somehow buy it back with the same "NUMBER" of HIVE.

So, I'm not so bias to HIVE afterall. If you remember few days back we have study on the spreadsheet. I'm just telling you, fix the number of exchange, that will in the end fix your greed and fear and throw them out of the equation. When you having too much numbers stuck in your head, you'll start to get confused. So, the best is, fix it 10. If you buy HIVE with 10HBD, then sell it back 10HIVE to the market from your previous buy.

This was happened few days back when the 10HBD were paid for 66.667HIVE. Notice there are buy backs at the bottom with all the Paid 10.000HIVE for certain amount of HBD? Trust me, I have all those orders in place waiting for the market to take sweep them away. If not, how do you think I will have HBD to play with?

Clearly, it looks like David is heavily bias on HIVE. And the table above shows how heavy HBD can exchange with HIVE. My answer to you is, no I never was. That's just the nature of these two crypto works. It's the denominator cheat code. If you can't set yourself free from keep on thinking why, you'll have trouble to understand the following.

This table was posting back in Episode 7 here in case you missed it. This part is very important, because this is HIVE/HBD more than 1.000. This reminds me in 2018 first season, after the SBD run, and we seen STEEM picking up speed racing up all the way to 8 dollars whilst SBD were left at around 6 dollars. That is exactly what happened here. Can you see where is this sitting on the table?

It's somewhere around 1.35 ratio. If someday, HIVE really rally all the way up, will you be able to pay 10HBD to get only 7.407HIVE? Or the other way round, will you be paying 10HIVE for 13.5HBD? By that time, I encourage you to come back and challenge my, David why would you BIAS HBD?

The idea is simple, the evil ratio is not an evil. It's the HUMAN perception that is evilish, greedy, and fear that causing us to lose money to trading. Mathematics equation never fail. Those who failed, is because they THINK the maths fail. I'm just a nobody in trading, and decided I don't care about how to maximize my profit, I just wanted every little bit of everything here and there. We're in the blessed era when the core token(HIVE or STEEM in our case since we're actively involved in either or both HIVE and STEEM blockchain) is cheaper than the pegged dollar(HBD or SBD in this case). It will be less fortunate when the pegged dollar being cheaper than the core token, you'll start to cry and seeing people NOT utilizing their pegged dollar to purchase core token anymore.

Due to heavily involved in #hive #blockchain explanation for the trading dynamic, this post is originally authored in #hive network, and will be cross posting at #steem later for the readers there, to understand the possibilities of STEEM become more valuable than SBD

Previous Episodes
Part 8 here
Part 7 here
Part 6 here
Part 5 here
Part 4 here
Part 3 here
Part 2 here
Part 1 here

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oneray (73) · 5 years ago

As always, an excellent explanation.
Congratulations

$0.00

1 vote

davidke20 (74) · 5 years ago

Thanks for stopping by buddy! I hope these article brings more value to all of us.

teamcn-shop (69) · 5 years ago

davidke20, thanks for your kindness to gift SHOP to 2 steemians, you have been received a 33.33% upvote from me~
@tipu curate

fucho80 (71) · 5 years ago

Hello friend, very careful about the details, I must confess that I do not have that kind of delicacy for the markets, but I admire your skill in all this.

Hey buddy, the idea is, don't spend time on it. Just park blindly on all the positions 🤭

edgarare1 (69) · 5 years ago

Hello @davidke20

I´m not an expert on trading but I can say that all those predictions are changing because many people are buying the token, It couldn´t be possible to run higher because this token is a part of Steem, If there are a lot of miners "users" writers who are making blocks on the chain, possible it would be cahnge a bit.

Personally, I´m not into "H" I respect the new chain but I only see how Steem is moving now...!!

Good publication, impress numbers there...!!

Well, in the end it's only a crypto. It's like games money, but under the control of blockchain itself to determine the value. So I don't really care how it move. All I care is, how much can I get from each move. Thanks for stopping by.

gbenga (73) · 5 years ago

I have been trying to look at the hive market to see how it moves and i must confess that you have done a good one bringing out this details.

Thanks for stopping by. Park your orders and start to get more and more in to your pocket

zulma (54) · 5 years ago

This seems very simple the way you explain it.
Thank you :)

It is, as long you know 10 steem is always equal to 10 sbd, nothing more, nothing left. When you want certain amount of SBD, you know you'll only give maximum 10 steem. When you need some steem, you'll only give maximum 10SBD. Automatically you will have balance each time.