Got shaken out of my KR1 position by large falls in Krypto prices coupled with news China were restricting Crypto.
Bought back a 2.4% portfolio weight first thing this morning – this is nicely up already. Not the smartest way to trade – going in and out of stuff like this at a 20% spread just makes market makers rich, even if you are trading profitably…
This has turned out not to be fatal to the cryptocurrency market. I have also been convinced by an excellent piece written by wexboy. The way to look at this might not be as an investment trust trading at a discount to assets (even though it is) it might be better to view this as a compounding machine on a relative basis rather than the stand-alone basis I looked at it.
On the other hand this sort of thinking leaves you more vulnerable to a pullback – the premium evaporates and you are eventually left holding the baby.
Coupled with this were good results released at 16.50 on Friday. As a result this creates a small opportunity – market makers / other pros have a routine of reading RNS’s between 7-8 AM so I could get in cheap first thing….
Potential upside here justifies big balls….
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