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## Cryptocurrency Podcast Episode #39: Bitcoin & Altcoin Trading Talk - Summary
1. Narrative Summary:
This episode of the "Bitcoin & Altcoin Trading Talk" podcast, a substitute broadcast due to the regular hosts' travel disruptions, dives deep into cryptocurrency trading strategies and market analysis. Featuring regular guest Brian Behmich and special guest DaVinci, a blockchain developer and active trader, the discussion centers around a bot trading setup on Auger, initially explored through paper trades. The hosts emphasize the importance of practice, risk management, and understanding the psychological aspects of trading, even when using automated tools. They explore concepts like harmonic trading patterns (AB=CD), finite risk, and the potential for identifying "ground floor" opportunities in emerging cryptocurrencies. The conversation also touches on the ease of creating new cryptocurrencies, the potential for horizontal growth in the crypto space, and a cautionary perspective on chasing hyped-up "Dutch coins." A significant portion of the episode is dedicated to explaining the intricacies of the Augur prediction market platform and its REP token.
2. Main Topics Discussed:
- Bot Trading Strategies: Detailed explanation of a specific bot setup on Auger, focusing on key levels and risk management.
- Harmonic Trading Patterns: Visual demonstration and application of AB=CD patterns.
- Risk Management: Emphasis on finite risk, limiting losses to 5% of capital, and psychological resilience.
- Trading Psychology: Handling losses, maintaining discipline, and the importance of consistent execution.
- Identifying Ground Floor Opportunities: Recognizing early-stage growth patterns in cryptocurrencies.
- Coin Fundamentals & Creation: Understanding the use case of cryptocurrencies and the ease of creating new coins.
- Horizontal Crypto Growth: Speculation on the future of the crypto market, with a focus on the proliferation of new coins.
- Augur (REP) Prediction Market: Explanation of the platform's mechanics, roles (bettors and auditors), and the REP token.
- Bitcoin Price Predictions: Discussion of potential Bitcoin price movements during a "fear cycle," with references to historical price points.
3. Key Quotes:
- "Let's go kick some crypto." (Host - expressing enthusiasm)
- "The more setups you practice, the more you just keep practicing your craft." (Host - emphasizing the importance of practice)
- "If I take a short at the 25 level, then this is my finite risk." (Host - illustrating risk management)
- "The hardest thing to do is to handle the losses... If you can't handle that, you'll end up freezing up and don't trade." (Host - highlighting the psychological challenge of trading)
4. People Mentioned:
- Alex: Regular host, unable to attend due to travel issues.
- Williams: Regular host, unable to attend due to Hurricane Matthew.
- Brian Behmich: Regular guest, trading class instructor, considered a "cornerstone" of the show.
- DaVinci: Special guest, blockchain developer, active trader, and TRI member.
- Rob: Student in Europe/Holland, involved in database tagging.
- Host (unnamed): Led the discussion and provided explanations.
5. Bitcoin Price (Mentioned):
- $1,000: Referenced as a historical price point in the parking garage analogy.
- $5,000 - $10,000: Speculated as a potential peak price during the current "fear cycle."
- $250: Referenced in relation to the Silk Road reversal.
- $100 - $300: Referenced as historical low price points.