If you're not earning, be learning. From one noob to others.
So I am trying my hand at trading on Binance and let me say for someone with no market trading experience - except for Magic: the Gathering cards (link to sales post) - the last couple of weeks has been a really big learning time for me. Trying to wrap my head around Elliot Waves and Bollinger Bands has been, well... interesting. I thought I'd share a couple of observations I have found whilst fooling around with it a bit.
- Look at different time charts. This helps you get an idea the overall trend of the coin in question. On a one or five minute chart it may be looking to go up but if you miss the mark on your stop it could head down lower than you want, locking up liquidity unless you take a loss. Looking at the 30 minute or one hour charts can act as a safety net; if you miss the mark on a short trade you might be able to pick it up again on a longer trade without copping that loss.
- Work out what your aim is. If you want to cash out what you make for the day on the day then you might be looking to reference your trades in USD (A). If you are looking to accumulate BTC, ETH or other base coins (B) then it's best to check out the current charts for those coins also. If those are trending up faster than the paired coin it may be hard to get the quantity of base coin you are looking for.
- Understand the indicators. Read posts and watch webcasts on indicators such as Bollinger Bands, Elliot Waves and EMA Lines. These are not necessarily foolproof wins but they do help you gauge trends. @haejin has some wonderful videos to help learn the basics of Elliot Waves and they have been very valuable to me. By all means like and his stuff for your friends to learn (I don't know haejin, just stumbled on him and found value).
- If it doesn't work out, wait out. You may just have to wait a bit. I have decided buy into coins at a target price but once filled it has continued to tank. For me I just set a stop limit at the value I wanted and went and did something else for a bit. If you looked at the longer chart and recognised an up trend in the 30 min or one hour charts before placing the buy then you might just be going for a longer play rather than a quick flip, and you may even be able to up the stop limit in accordance with that trend instead of the fine minute chart, but don't get too greedy.
- Don't stress. If you are stressing about your decisions you may be gambling and not investing. To me investment allows a certain amount of control; gambling relinquishes that control. You have to be willing to lose the money you have invested, but not think like it has already been kissed goodbye. If you are feel stressed it may help to reevaluate what you are doing, why you are doing it and how you do it. Everyone should be in the game to enjoy their time and profit while doing it.
Take care of yourselves peeps and enjoy the roller coaster.
Got any other tips for noobs out there? Feel free to drop a comment and start a discussion. Got any criticisms or thing you think I got wrong? By all means voice those too, I am learning and may not be onthe right track with something. These are just my observations and not rules to work by.
Thanks for reading.
I definitely agree with not stressing about fluctuations. If you keep a cool head then you can wait and see if what you invested in needs to be recouped or if you can keep it on an exchange to spring on an opportunity later. Great post
Thanks mate. I only bought in as the January dip was happening. All I have known is lows so I think that has helped me get some context about this. Thanks for the support :)
Good luck, keep a level head! Know when to take your profits and play safe.
Thanks for the reinforcement, good psychology is important.
I don't know how you keep track of your trading, but I use blockfolio. I'm just a dabbler in day trading, more of a hodler myself. But maybe you have a better system?
I have been using the Delta App on my phone. I don't do too much at any given time so I can keep track of it. The rounding starts putting figures out a little though so when it gets a bit too far out I manually adjust it to correct quantities.
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