Bitcoin Gets Launched

December 8, 2017 8:45AM CST

On December 10 and December 17 the CBOE and CME will finally launch the long awaited Bitcoin Futures contract. This will add a new element to bitcoin changing it from a buy side only trade to having the ability to go long or short. This should bring new larger and institutional participants to the market.

Anytime a new contract gets launched you want to get a gauge of the type of movement to expect, so take a look at the average true range of the last 30 days, week, day and hour.

Last 30 days – High $18,464 – low $5,868

Week- High $18,464 – Low $10,797

Day- High $18464 – Low $14,610

And the last hour as of this writing - High $15,564 – Low $14,796

As one can see based on the wide ranges this is a volatile contract so using a stop loss order is going to paramount.

The question is, will this just be a short lived contract like single stock futures, real estate futures or binary futures, no one knows. Two pieces of advice I can offer when diving into trading this product. Remember, markets tend to fall twice as fast as they rise. This occurs when investors catch a long trending bull move and then when they see their profits start to slip a “panic” occurs and everyone runs for the exit. The second is to remember to plan your trades and trade your plan.

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