As I write this post, I have an open long position on Bitcoin that I started at 810 earlier today. When I put it up, I wrote in the note section:
“Speculating on an expected return to the mean. BTC-e was oscillating 12-15 higher than Stamp when I initiated the position. I expect the gap to close due to natural market movement and arbitrage. I did not place a limit sell, but anticipate selling between 827 and 831, though I may hold as high as 860 if upward momentum materializes, especially if it is due to news.”
It’s very minor right now, but this is exactly the sort of thing that can propel a lot of upward momentum very quickly. The news has barely been ingested by the market at this point, and we’re sitting at 819 on Stamp and 823 on BTC-e. I’m certainly holding past 830 with this news, but may still sell at 860–might get greedy and try for more, though. That will depend on how the climb up looked, and where this story goes.
Free lunches are much tastier than those you pay for. Similarly, good news when you already have a long position might be the most delicious thing imaginable.
In short, it’s a great day for HODLING.
EDIT: I updated this update here.