There is a good reason options traders buy puts going into earnings season or large events. It's because normally leading up to the event you get an increase in the stock price. We see this with Apple all the time along with many others. But the simple facts are stocks and or equities in general tend to drop much faster than the go up after such an event. Even if the event is positive. I learned this trading options that even if a company reports great earnings the stock is often sold off after the earnings release. For a good risk to reward it's always best to buy puts going into these events as the buildup seldom carries afterwards and equities drop faster than rise.
But now that we have had the event XRP is trading down where we can consider adding to our core. I am looking to add some here and will add some down between 16-18 cents. I like XRP and it is really in my opinion the best in breed in this sector. Not only does it have a working product and market penetration, it has a great Team and a solid Board of Directors. Also numerous banks are involved. People do not like change, so I doubt another coin like XLM will compete in the long run. Of course you never know.
The chart is rather clear. XRP' is trading in the lower end of the linear regression channel, and also around the longer term trend line I like. It can go down from here as the market is uncertain but if you are looking to add a position this is not a bad place to start.
But why XRP and why does market penetration matter? Let's go back 30 years ago when the VHS tape came out. Betamax was a much better product and actually I believe they were first to market. But VHS gained popularity, as it gained market penetration quickly, because it was cheaper. Everyone had one in their home. Market penetration because it was cheaper not better. It wasn't long before Betamax (even though it was better) was obsolete! But the key was market penetration!
So this is why I like XRP, they have great market penetration and is already being used by numerous banks. This is the future of bank transfers and I want to be in for the long term.
I can name others such as Windows, Cisco, Amazon, Google that once they had market penetration and market adoption they soared. I know you can name better products for at least 3 of the 4, but mass adoption leads to long term winners, and businesses do not like change. This is why windows and cisco still chug along!
This is also a reminder that you buy the rumor but sell before the event! It dropped sharply and gains were lost. I didn't trade it but many did and going into these events everyone is already expecting something spectacular to happen. So the announcement cannot be spectacular it has to be earth shattering. Well it wasn't and we see this all the time in the markets, yet people still pile in to the trade. Let me think AMD comes to mind recently! Ohh there was GoPro that shot up after but is now down by 50%. AMD dropped 20% after beating estimates and increasing guidance last quarter. I could go on with a list, but be careful buying into events! (Remember MCO's big event?)
The oldest saying in trading! BUY THE RUMOR SELL THE NEWS!
THIS IS A LONG TERM ADD HERE, I DO NOT CARE ABOUT THE SHORT TERM MOVEMENTS AS THIS IS NOT A TRADE!
But now that we have had the event XRP is trading down where we can consider adding to our core. I am looking to add some here and will add some down between 16-18 cents. I like XRP and it is really in my opinion the best in breed in this sector. Not only does it have a working product and market penetration, it has a great Team and a solid Board of Directors. Also numerous banks are involved. People do not like change, so I doubt another coin like XLM will compete in the long run. Of course you never know.
The chart is rather clear. XRP' is trading in the lower end of the linear regression channel, and also around the longer term trend line I like. It can go down from here as the market is uncertain but if you are looking to add a position this is not a bad place to start.
But why XRP and why does market penetration matter? Let's go back 30 years ago when the VHS tape came out. Betamax was a much better product and actually I believe they were first to market. But VHS gained popularity, as it gained market penetration quickly, because it was cheaper. Everyone had one in their home. Market penetration because it was cheaper not better. It wasn't long before Betamax (even though it was better) was obsolete! But the key was market penetration!
So this is why I like XRP, they have great market penetration and is already being used by numerous banks. This is the future of bank transfers and I want to be in for the long term.
I can name others such as Windows, Cisco, Amazon, Google that once they had market penetration and market adoption they soared. I know you can name better products for at least 3 of the 4, but mass adoption leads to long term winners, and businesses do not like change. This is why windows and cisco still chug along!
This is also a reminder that you buy the rumor but sell before the event! It dropped sharply and gains were lost. I didn't trade it but many did and going into these events everyone is already expecting something spectacular to happen. So the announcement cannot be spectacular it has to be earth shattering. Well it wasn't and we see this all the time in the markets, yet people still pile in to the trade. Let me think AMD comes to mind recently! Ohh there was GoPro that shot up after but is now down by 50%. AMD dropped 20% after beating estimates and increasing guidance last quarter. I could go on with a list, but be careful buying into events! (Remember MCO's big event?)
The oldest saying in trading! BUY THE RUMOR SELL THE NEWS!
THIS IS A LONG TERM ADD HERE, I DO NOT CARE ABOUT THE SHORT TERM MOVEMENTS AS THIS IS NOT A TRADE!
