Let’s do this week’s Live Q&A Chat in our new and improved Trading With Cody Chat Room: https://tradingwithcody.com/chat at 2pm ET today. You can also just hit reply to this email to send me your question.
One of the most amazing things about bitcoin and a true testament to how Revolutionary Bitcoin and Blockchain truly are is the fact that it’s survived all the shady dudes, big name arrests and several 90% crashes in the past.
That said, I admit I’m pretty amazed at the mania around Bitcoin and cryptocurrencies right now.
The supposedly bitcoin-related stock (I don’t think the company will ever generate much revenue on bitcoins or their biotech businesses) I tried to buy puts on yesterday has crashed 20% from where I started trying to bet against it. Didn’t get filled on the puts, but if it spikes again, I’ll put some bids on those puts again.
I mentioned yesterday that there are a lot of penny stock scams out there related to bitcoins and cryptocurrencies, just like there have been a ton of penny stock scams around the marijuana industry in the last decade.
Yesterday I spoke to an 52-year old investor who was lamenting that he had kept 1/3 cash on the sidelines for the last year or so. I reminded him how easy it is to look back and do the woulda/coulda/shoulda thing. How would you like to be one of the many “smart” money dudes who has been betting against the market for the last five years and have lost tons of money in the markets while you’ve been riding some great stocks to amazing new highs.
More importantly though, I told him to remember the last time the market was down 15-20% and he wished that he didn’t own any stocks.
I do think it’s important to be defensive when there are so many asset classes like stocks and bitcoins going parabolic. Remember that we might be the only investors on the planet that got out before the crash of 2008 and then actually got back in and called for this ongoing Bubble-Blowing Bull Market back in 2010. Fast forward to late 2017 with the stock markets up 300% from their lows and Bitcoin up 17,000% in the last five years, and NOW you can hear people everywhere explain that extremely low rates, a steadily growing global corporate economy and all the other factors have made this Bubble-Blowing Bull Market a reality.
Let’s strive to stay ahead of the curve and those people.