On Sunday's episode of the "Pennies: Going In Raw" podcast, hosts Hugh Henne and Dan Knight explore a common annoyance of many newer traders — Pattern Day Trade (PDT) regulations. In addition to PDT, the pair discuss what's been going on in the markets, stimulus checks, Bitcoin and more.
In previous episodes, Henne and Knight talked about different Bitcoin stocks such as Riot Blockchain Inc (NASDAQ:RIOT) and Diginex Ltd (NASDAQ:EQOS) and how those stocks could potentially run if we see Bitcoin hit new all-time highs. On Sunday's episode, Henne said he does believe we will see new all-time-highs with Bitcoin but that we will not know.
"I do think $100,000 [per Bitcoin] is imminent, but I am not buying Bitcoin here because when they do finally want to pull the rug again, which they will, it could drop all the way to $20,000."
Knight added that he was invested in Bitcoin when the cryptocurrency tanked alongside the rest of the markets last March.
"That was one of the first big drops I was ever in, last March I think it was the same day that SPY and everything crashed, so it was already a rough day," Knight said. "I went home and was playing some 'Overwatch'… I saw Bitcoin broke the $9,000 support and then I just looked and saw it go to $3,800 and was like huh… I've got a lot of these."
That was about a year ago when Bitcoin briefly dropped below $4,000 a coin. A year later, the coin is trading for nearly $60,000. Knight added that he is trying to add $10 worth of Bitcoin a day, and hoping that investment accumulates returns in the long run.
"I still really like EQOS," Knight said. "I'm still buying far-out calls for June, July, August. If Bitcoin's going to keep running these Bitcoin stocks are going to stay hot… I'm up 78% on those calls."
Henne and Knight transitioned from Bitcoin into the stock market in order to discuss different methods of day trading. Henne opts to day trade with a small allocation of his portfolio.
"From the day-trading aspect, you're going to see one of the top-five runners… and if it [the stock] is still hanging around those pre-market highs by 10 a.m… that is a really good candidate that can be soaking," Henne said.
Henne describes what he calls a "soaker" a stock that is increasing in volume, while the price stays somewhat constant. He points out that often the increase in volume comes before the increase in price. He used Bionano Genomic's quick rise a few months back as an example.
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