The recently listed crypto stock Galaxy Digital has been added to our radar of blockchain and cryptocurrency stocks to keep our eyes on. The reviews (by traders) we have read so far are not encouraging, but it is early times for this stock. Before sharing the possible opportunities (that may or may-not be there) with this stock, we wish to share a few scenarios about the trading activity since listing.

Tomorrow, we will be sharing our thoughts on trading Galaxy Digital.

Galaxy Digital is a cryptocurrency-focused full-service digital assets merchant bank that was launched back in November 2017. The stock has been largely backed by the notable former Goldman Sachs macro trader Michael Novogratz.

On 1st August 2018, Galaxy Digital was listed on the TSX Venture exchange under the ticker GLXY (TSXV:GLXY). The company was able to get listed by buying Canadian crypto start-up Coin Capital, and then a reverse-merger with Canadian shell company Bradmer Pharmaceuticals. The company surely didn’t receive the warm opening it was hoping for. However, by the end of the week, the stock managed to sneak out a close above the listing price, as can be seen by the chart below.

Lets revisit some stock trading fundamentals to begin assessing this stock. Whether you are a trader or investor, when you purchase a stock, you likely have a stop loss range/point. That is, whenever the stock touches that number, you simply close the position.

It can be a nail-biting experience buying a stock on its listing day, such as Galaxy Digital (TSXV:GLXY). As a Trader, your motivation could be the to desire to lock in quick gains. As an Investor, your motivation could be the opportunity to get in early with a winner company. In the case of Galaxy Digital (TSXV:GLXY), your stop loss would probably be less than 20%; meaning that it has triggered and you closed the position. Now, from the 2nd day onwards stock started moving up and passing past the opening price.

With hindsight bias (Hindsight bias, also known as the knew-it-all-along effect or creeping determinism, is the inclination after an event has occurred to see the event as having been predictable, despite there having been little or no objective basis for predicting it.) you try to convince yourself that you were right. You knew-it-all-along.

Assuming you purchased Galaxy Digital (TSXV:GLXY) at its opening, and then closed your position, you would currently have a loss. So regardless of what you were expecting about Galaxy Digital’s movement, purchasing and then selling this stock over it’s initial trading week, wouldn’t have worked out well.









What if You Didn’t Sell?

Assuming you purchased Galaxy Digital (TSXV:GLXY) at its opening, and then continued to hold your position, you would currently have a small gain. Building on the decision to continue holding this stock, the determining force for a continuing rising in profitability or a decline, is likely subject to the same forces we have seen with other blockchain and cryptocurrency stocks are: company fundamentals and direction of the overall cryptocurrency market. We will keep our eye on this stock and continue coverage we believe may be important to know.

We share this type of trading scenario because it is very common among many retail traders and so that we can use our mindset positively for profiting. Do share your psychological shortcomings when come to trading. If you believe that you do not have any limitations, then surely you have the Overconfidence Bias.

Tomorrow we will be sharing our views (and trading possibilities) on Galaxy Digital Stock Trading.

Disclaimer