On Friday, 15 May I posted an impromptu analysis warning about the imminent price correction or reversal for Bitcoin. The article I published on ZeroHedge got some 7,300 reads and 24 comments.
Although the analysis could not have been more spot-on, reader comments were largely dismissive. One reader called my analysis ‘hogwash.’ Another asked if I also consulted entrails of slaughtered sheep or Tarot cards. Someone mockingly asked when was the last time chart analysis actually worked?
This all once more underscored the unwarranted and unjustified rejection of chart analysis and trend following as a legitimate and effective solution to the problem of uncertainty – the key problem we must address in managing our trades and investment portfolios. For many traders this experience with Bitcoin was extremely painful. Allegedly, over 775,000 traders had their accounts liquidated as a consequence.
This Bitcoin episode was merely the most recent case study underscoring the crucially important lessons about effective and ineffective ways we deal with uncertainty, the most important challenge all investors, traders and hedgers face. I have therefore put together a follow-up commentary in a short YouTube report. I believe it will be worth the 14 minutes of your time: