I closed out of my Bitcoin short

Brendan Burgess

Founder
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54,790
I had sold short at $14,600 over two years ago.

I had originally planned to cash when it fell to $3,000, which to be fair I had originally assumed would be within a few months of opening the position.

But I needed some cash and didn't fancy selling any shares in the current market.

So I cashed today at $5,300

So that is probably a sign that it will go to zero shortly.

Brendan
 
Of course, if the Bitcoin price returns to high levels , then I will probably sell it short again.

Brendan
 
Well done.

I think you did it on a spreadbetting site? What were your costs for the transaction over the two years, and how much of your cash did you need to leave invested. (maybe you can do it for a single bitcoin if you don't want too divulge your investment side).
 
Hi SPC

Yes, I did it on IG Index.

I found the costs very difficult to navigate. I have a statement for 2019 but that includes Tesla as well.

This is my rough estimate of the P&L per coin

Profit per coin: $9,300
Costs per coin: c. $ 400
Net profit per coin: $9,000 approximately

Because the profit per coin was large, the costs were not material. If you believe that something is in a bubble, the costs are not material. If you think that a particular share might be a bit overpriced, then the costs would eat up any small profits you would make.
 
SPC100 said:
how much of your cash did you need to leave invested.
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When I sold first at $14,600, I think I put in $10,000 per coin to allow it to rise to $25,000.

Then when the price fell, I reduced the stop loss to $13,000, and that freed up money.

Brendan
 
WolfeTone said:
I think Brendan will always hold a soft spot in his heart for Bitcoin from this day forth!
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Hi Wolfie

I always have had. It has been a very interesting experiment.

If it goes up again above $10k , I will probably short it again depending on my cash position.

Brendan
 
Duke of Marmalade said:
Hot Air Day acometh Boss. You will live to regret this lapse of faith.
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Well done to Mr. Burgess on finally closing out a paper trade to realise a profit. It was the right decision given that this day of bitcoin apocalypse is as hard to pin down as the world's 'end of days' (perhaps they're the very same day).
 
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