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!
I think it starts showing improvement after Oct 25, but the real spike would be after the second BTC fork. December 2017 is the XRP month.
There are many reasons for that including:
- XRP 55 billion XRP lockout by end of year
- Ripple Exchange Startup
- Ripple complete decentralization by end of year
- Shifting from BTC (after forks) to XRP instead of fiat, for tax purposes
- 300M incentive accelerator announcement
- The results of Swell conference will show up soon. I mean the "Behind the closed doors" private meetings.
Ripple != XRP. I don't how many times it has been said already but it needs to be said again and again till everyone gets it. Success of Ripple Labs and Ripple Network does not equate success of XRP because the Ripple Network can work without XRP and it has been clarified. XRP is used to simply ward off spam attacks. If banks adopt Ripple's tech, they will need to hold 1 or 2 XRP to process millions of transactions throughout the year since the fee is insanely low. Considering a max supply of 100B coins, most of which under the control of Ripple Labs and the fact that even nodes are centralized and run exclusively by the company, I would stay far away from this coin. This coin has always been used as a pump and dump by the whales and will remain so.
goldbug1
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@nginx, 100Billion coins is not much when you are talking about money transfers between financial institutions. Swift transfers 1.25 quadrillion dollars a year (or facilitates them). Chips transfers 1.5 Trillion dollars a day ($550 Trillion a year) And those are just two entities that transfer money or facilitate them between domestic and international banks.
so 100 billion coins would be to the wire transfer industry what a $10 bill would be to bill gates.
That's like being upset that Jeff Bezos owns 80 million shares of Amazon.
The board is amazing and full of executives not kids with computers.
Backers include accenture google ventures, seagate among others.
I know there are haters but I stack this every dip! I want 100,000 coins. Think it gets to $5 or $10, your rich! And they will lead global wire transfers.
Thank you for commenting nginx, alternate views are greatly appreciated!
nginx
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@goldbug1, No mate problem. We all have our likes and dislikes. I am also open to alternate views. I held 40k XRP at one point but I sold off everything because I didn't want to support a centralized coin when crypto is all about decentralized economy free from the control of banks.
neerajniccu
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Until Ripple does not buy back most of its coins to stabilise price, it wont succeed. These whales use it as a parking lot and that will cause headache for adopting banks. Plus they are selling a product thats so easy for any of the big banks to emulate. Bitcoin is a brand and a household name now, and thats the value. Dont get me wrong, the business case of Ripple is miles ahead of BTC, although business case of XRP is kaput. I will wait for Ripple to get listed on proper stock exchange through an IPO and that will be a big event. XRP coins itself is a small piece of the technology and some days some bank is going to ask Ripple to throw it out.
goldbug1
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@neerajniccu, Yes but XRP allows the smaller banks to compete with them. This is why I like it as well. I would love it to be listed, that could literally buy me the farm I have always wanted! Thank you Neer for the comment. Appreciate your insight as always!
zakgottlieb
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@goldbug1, Agree with this. they are going after the longer-tail of banks with less liquid trading corridors. Perfect play to get XRP in the door.
There are many reasons for that including:
- XRP 55 billion XRP lockout by end of year
- Ripple Exchange Startup
- Ripple complete decentralization by end of year
- Shifting from BTC (after forks) to XRP instead of fiat, for tax purposes
- 300M incentive accelerator announcement
- The results of Swell conference will show up soon. I mean the "Behind the closed doors" private meetings.