RE: Borrow HERO and Short it by full-steem-ahead

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· @full-steem-ahead · (edited)
$5.61
Yep, I'm in the same boat. For reasons I'm uncertain of (I blame it on decades of financial indoctrination by the oligarchs that seems to have implanted a subconscious resistance to such knowledge), the concept Bill perfectly described here just doesn't sink in as deep, intuitive knowledge. I don't see how it could possibly be explained any better though. I just need to meditate on it and put it into practice and through repetition "pound" it into my psyche -- so as to "indoctrinate" myself. 

It's very important to emphasize -- again -- that the strategy described here is based on the belief that ***in the long run*** the value of BTS will increase. I am also certain there are complementary strategies one can employ to profit when the value of BTS is declining. I don't know the mechanics of that either, and of course the two methods can't be used simultaneously as their premises fundamentally conflict. Timing is everything, but rather than trying to guess the market and switch between those strategies I think it's best to look at the fundamentals of why BTS provides value and pick the strategy that best fits your assessment of that in the long run. 

Fundamentals can be enhanced or negated by marketing however, which complicates choosing the correct strategy to employ. BitShares hasn't had much good marketing for a long time, but that is now changing and only serves to improve my optimism for the future of BTS. I'm a terrible chart reader and short term speculator so the strategy Bill described so well is my perfect HERO.
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vote details (2)
@billbutler ·
$5.11
This is a strategy that works well on BTS dips. It also works when BTS is in a bull market, but probably best to execute this strategy at the beginning of a bull market, not after it's been running for a bit.
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@jelasalyn ·
Although it is explained well I think I need someone to make a chart to visualize how this works. I do understand how to make a profit when BTS is declining in value. Buy, not borrow, a Hero. The Hero price is relatively stable and as BTS decreases in value you will get more BTS back when you sell. It takes more BTS to buy a Hero. If you watch for the Call Margin price and sell when it shows up in the order book you can make a tidy profit.
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