The stance on Bitcoin day trading is a highly debated topic. Some view Bitcoin as a "long hold and use" currency; whereas, others find it to be more profitable as a day-traded investment. One of those day traders is Andrew Cook, founder and CEO of Cook…
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[dropcap size=small]O[/dropcap]n June 2, 2014, Cook posted “How to Make Money Trading Bitcoin | Day 1 of 5” on the popular Bitcoin trading discussion subreddit BitcoinMarkets under the username “Racingdrew3.” BitcoinMarkets is a small reddit community with only 15,921 subscribers; a very small portion of the Bitcoin community to say the least.
“Over the next 5 days I will be showing people how to trade Bitcoins. Everything from how to read charts, which we’ll cover today, to how to make educated predictions about the market. We will only be covering the basics; just enough to get your feet wet,” Cook explained first and foremost, “I am not recommending you to do anything with trading, just friendly advice.”
He then went on to explain everything related to Bitcoin charts; from price indexes and buying and selling, to line and candlestick charts. Cook also went on to explain volume and order books. To some, this is all tedious and basic information. But to those experiencing Bitcoin, let alone day-trading, for the first time, it seems overwhelming.
However, Cook breaks it down. He explains each concept with pictures and examples. He makes it look easy, even though everyone knows it’s not.
On Day Two, Cook clarified his reasoning on these guides again, “We are not asking you to invest with us, nor suggesting you should, we just want to help out the community. I am also not telling you when to trade, just simply how to trade, I cannot express this enough.”
Day Two delved into more complex facets of the trading process: Moving averages, moving average convergence divergence, stop and reversal; along with all of the other basic indicators.
These guides have not been met without a hint of skepticism though. The comment sections are littered with reminders not to “invest” based off of these posts. Some users claim that this is all a marketing ploy to gain attention for Cook’s firm.
“Investing isn’t easy,” one commenter said, “If it were easy to make money investing, everyone would be rich now. Do you think five Reddit posts explaining basic trading concepts will help you make a lot of money? Not a chance.”
Regardless of the skepticism though, the information and advice Cook is giving out holds truth. It doesn’t seem as though he’s trying to sway people with trends or move the market in a certain direction. He’s truly, honestly explaining the basics in a highly complex field.
The key is for the reader to separate themselves emotionally from the teacher and focus on the homework. Cook does attach his investment firm to each post and it’s important to realize that the end goal may very well be for Cook Investment Firm to gain business.
In the latest post, Day Three, Cook is explaining short term and long term trading, as well as momentum trading and technical trading. Day Four and Five look to be posted on June 5 and 6 respectively. Each post is available for review at BitcoinMarkets.
Featured image by Shutterstock.
Last modified: January 25, 2020 10:03 PM UTC