[Hive talk] Understanding crypto trading - Episode 9 by davidke20

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hive-175254 · @davidke20 · Apr 14 '20

$4.97

[Hive talk] Understanding crypto trading - Episode 9

Today, we are jumping 1 chapter back, will be continue study Part 7 [here](https://peakd.com/hive-175254/@davidke20/hive-talk-understanding-crypto-trading-episode-7) 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".

![image.png](https://files.peakd.com/file/peakd-hive/davidke20/zQnTZ6Ty-image.png)

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.

![image.png](https://files.peakd.com/file/peakd-hive/davidke20/8TTkj5tO-image.png)

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.
https://images.hive.blog/0x0/https://files.peakd.com/file/peakd-hive/davidke20/6UGw8cCe-image.png
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?

![image.png](https://files.peakd.com/file/peakd-hive/davidke20/xb4lJS45-image.png)
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.

https://images.hive.blog/0x0/https://img.esteem.app/xdv3gn.png
This table was posting back in Episode 7 [here](https://peakd.com/hive-175254/@davidke20/hive-talk-understanding-crypto-trading-episode-7) 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?

![image.png](https://files.peakd.com/file/peakd-hive/davidke20/dvqx0p8c-image.png)
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](https://peakd.com/hive-175254/@davidke20/hive-talk-understanding-crypto-trading-episode-8)
Part 7 [here](https://peakd.com/hive-175254/@davidke20/hive-talk-understanding-crypto-trading-episode-7)
Part 6 [here](https://peakd.com/hive-175254/@davidke20/hive-talk-understanding-crypto-trading-episode-6)
Part 5 [here](https://peakd.com/hive-175254/@davidke20/hive-talk-understanding-crypto-trading-episode-5)
Part 4 [here](https://peakd.com/hive-175254/@davidke20/hive-talk-understanding-crypto-trading-episode-4)
Part 3 [here](https://peakd.com/hive/@davidke20/hive-talk-understanding-crypto-trading-episode-3)
Part 2 [here](https://peakd.com/hive/@davidke20/hive-talk-understanding-crypto-trading-episode-2)
Part 1 [here](https://peakd.com/hive/@davidke20/understanding-crypto-trading-episode-1)

👍 project.hope, tipu, wherein, hingsten, redpalestino, ripperone, aellly, crypto.piotr, cwow2, livinguktaiwan, deathcross, wilhb81, abitcoinskeptic, erikah, robmolecule, sbi9, catwomanteresa, tvb, bitrocker2020, arcange, superoo7, htliao, retinox, lovelemon, pwny, cn-malaysia, jagged, face2face, happycrazycon, fbslo, danielwong, dapeng, iamjadeline, beverlyjoe, chipdip, happy-soul, brage, verasj, dses, themanualbot, yasu24, janicechua, julian2013, fun2learn, abcallen, joannewong, kimzwarch, sunai, king-cobra, sinochip, reverseacid, dxn, liuzg, itrmarcusliew, francesaw, aaronleang, muntaharaceh, sugarsugar, minloulou, good2believe, celo769, monajam, windowglass, gbenga, and 35 others

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properties (23)vote details (99)

voter	rshares	pct
redpalestino	1,287,097,606,098	25%
arcange	67,821,436,704	3%
raphaelle	2,285,465,590	3%
themanualbot	15,367,195,029	10%
dapeng	34,782,989,210	100%
ripperone	1,123,468,407,152	20%
gbenga	3,518,129,970	30%
vaelriey	2,366,400,122	10%
sokha	1,464,783,246	12.5%
htliao	62,840,927,054	25%
pwny	49,730,716,762	50%
khussan	1,183,582,959	55%
jagged	46,559,837,846	15%
bitrocker2020	73,118,808,717	5%
monajam	3,719,079,875	100%
francesaw	7,979,205,780	80%
livinguktaiwan	111,352,856,768	10%
face2face	42,248,076,128	100%
catwomanteresa	76,354,656,344	30%
saifmmc	437,196,458	100%
yasu24	14,519,857,198	10%
aaronleang	6,302,798,968	5%
tvb	74,339,553,288	100%
tipu	3,165,618,195,471	7%
kimzwarch	12,236,302,267	5.5%
fbslo	38,263,783,687	30%
minloulou	5,928,437,745	25%
windowglass	3,607,786,979	100%
jacktan	3,020,571,381	50%
angelina6688	943,198,684	30%
joannewong	12,499,064,504	5%
danielwong	36,340,585,737	100%
abitcoinskeptic	93,496,984,878	18%
dxn	9,033,320,538	100%
iamjadeline	33,630,694,919	20%
fun2learn	13,711,907,279	6%
happycrazycon	40,462,853,217	100%
sinochip	11,014,536,997	40%
superoo7	63,498,203,863	50%
yumisee	1,630,169,721	100%
verasj	24,393,674,896	50%
wilhb81	93,785,578,046	100%
beverlyjoe	30,944,575,002	50%
felixgarciap	1,473,593,678	6%
moeenali	1,494,602,246	1%
happy-soul	27,867,390,185	3.5%
celo769	3,881,155,983	100%
abu.bus	1,598,629,262	50%
pizzapai	597,696,029	100%
retinox	61,146,317,869	27.41%
erikah	92,584,025,085	25%
rosmadirazali	2,928,220,649	85%
irmeyhamidi	965,932,767	100%
itrmarcusliew	8,546,559,047	100%
aellly	526,890,849,621	100%
liewsc	3,043,330,903	50%
tanzy	1,418,126,201	50%
miszeda	1,237,253,580	100%
dvdwritter	722,791,909	100%
janicechua	14,386,650,849	20%
robmolecule	88,898,206,058	25%
littledrummerboy	635,328,808	100%
liuzg	8,756,973,224	40%
crypto.piotr	214,495,747,062	55%
archisteem	3,312,419,805	7.5%
johnsonlai	596,601,655	100%
cn-malaysia	46,988,674,722	100%
dses	19,125,628,107	60%
moneybaby	947,538,684	2.5%
abcallen	13,488,786,881	80%
nailyourhome	1,275,944,821	6%
cyberspacegod	538,235,181	30%
sunai	11,651,233,450	100%
china.mobile	2,921,800,577	50%
julian2013	13,766,781,578	5%
deathcross	96,182,051,574	100%
sbi9	78,871,552,987	97.3%
reverseacid	10,576,450,504	55%
bsfmalaysia	1,750,804,884	100%
cwow2	173,710,253,814	55%
lizachong	2,022,660,918	50%
sugarsugar	6,020,361,005	25%
king-cobra	11,417,523,870	100%
chipdip	28,776,471,751	25%
wherein	2,203,401,453,665	100%
agritecture	1,100,514,904	50%
muntaharaceh	6,176,433,498	100%
ashuisme	557,439,279	90%
junnel123	605,377,136	27.5%
hingsten	2,102,895,546,073	70%
good2believe	4,238,112,855	100%
lovelemon	58,504,462,948	100%
jalentakesphotos	2,657,436,415	10%
project.hope	3,457,859,380,265	30%
lottotoken	1,592,112,129	100%
mister.reatard	553,804,096	12.5%
awah	2,123,229,966	11%
brage	25,702,441,807	70%
teach-me	1,369,808,319	38.49%

@crypto.piotr · Apr 15 '20

@tipu curate

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@davidke20 · Apr 15 '20

Thanks for curation 🙏

properties (22)

@tipu · Apr 15 '20

<a href="https://tipu.online/hive_curator?crypto.piotr" target="_blank">Upvoted  &#128076;</a> (Mana: 0/40)

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@joelsegovia · Apr 16 '20

Ok, lets fast forward this story a little bit to make sure I got it all... picture that you start trading with an initial balance of 100 Hive and 100 HBD, the market favors HBD over Hive right know and also, you sell like 100 HBD for Hive... you also put back some sell orders using the Hive you're getting from your selling HBD, actually you said that you sell 100 Hive as well... IF the market moves favoring Hive instead in a manner you cover both your 100 HBD sell orders and your 100 Hive purchase orders, what was the end result? you will end up with more Hive tokens than those you got from the beginning, but you also have now less HBD than the initial quantity, if I am to ignore the ration how I'm supposed to balance the trade?

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@davidke20 · Apr 16 '20

You will not balance, but that's what the market tells us 😂 the upside is, if the ratio stays below 1, that means we will have more hive then HBD. But if ratio above 1, dude that is going to be very sad. It can be 100:1. When you need to pay 100HBD for 1 HIVE 😂😂😂

Under what circumstances it will be 100:1 ratio? I don't exactly know, may be hive worth 100 dollars whilst HBD maintain at 1 dollar? Or, hive is 1 dollar whilst HBD fall to 0.01. what do I do by then? Trade for more HBD and sell my HBD for fiat.

This strategy is simple, don't count on how much you starting with, but keep on trapping both side with the same amount. Treat them as equal 1:1 and you shall never fall.

properties (22)

@joelsegovia · Apr 16 '20

So at least I got your idea, do you have some kind of Excel data on which I can see how this is working for you in a timeline window of at least a year? I'm very curious at the math behind this assertion of yours and might even go and create a simulation model for it 😜

properties (22)