THE GRID CRYPTOCURRENCY MARKET TRADING
Hello to everyone in this wonderful community and in this great platform at large today. I greet you all in good spirit and I want to believe that we all are doing just great today and if so we give God the praise for the sustenance of life and good health.
I welcome you all to yet another beautiful week of the month of December and I hope we all are set for the holidays and we are in the season of Christmas. It is a pleasure to be here once again to discuss with this great family, trust me I am honored.
Today I am here again to talk about a particular subject with you all regarding cryptocurrency market trading. Cryptocurrency has divers methods of trading and as such it is very broad and we can't talk about all of them in a single day and this is why we bring them in little by little to discuss for a better assimilation and understanding about the cryptocurrency market trading.
We are going to be looking at a different aspect regarding cryptocurrency market trading and I have titled the discussion for today as THE GRID TRADING IN CRYPTOCURRENCY MARKET I know this might be new to certain users especially newbies but do not worry because I will be doing justice to this topic today. The only thing that is expected of you is to sit tight and relax as I begin the discussion for today. I wish you a happy reading.
Before I begin the teaching for the day, it is crucial that I define the concept of the topic for today as this will facilitate more understanding as we begin the teaching bit by bit in other to be right on track.
WHAT IS GRID TRADING
Grid trading is a particular method regarding cryptocurrency market trading although it is most common in forex trading and it can also be employed in different makers trading regarding cryptocurrency.
Grid trading is a different ball game entirely and this is done by setting your triggered price either a bit above the current price or setting the price below the current price so as to take profit when the price of the said currency hits the triggered price that was set by the trader and when this happens, the trader will be in profit when the price is triggered.
We all know that the cryptocurrency is highly volatile and because of the volatility regarding cryptocurrency, traders who are more familiar with this particular method of cryptocurrency market trading which is known as the Grid trading, take advantage of it to make profit in the market as they set their entry others to take advantage of the volatility regarding cryptocurrency to make profits in the trading market.
The grid trading is done in two major ways just as in the spot trading and the futures trading, the grid trading trading had two different ways of executing trades. It has the Buy entry order trade and the sell entry order trade. I will be discussing about the buy entry order trade and the sell entry order trade respectively for more emphasis regarding the grid trading.
THE GRID BUY ENTRY ORDER TRADE
In grid trading, the buy entry order trade is executed in the market and this is done carefully by the trader. When a trader wants to execute a buy entry order trade in the grid trading, he carefully looks at the current price of the asset he intends to trade in the market and having seen the current price he then place his trigger price slightly above the current price and this is done at intervals.
This reason why the trade is to be executed at intervals is because we all know that the cryptocurrency market move from up to down and vice-versa and this is because of the volatility regarding cryptocurrency assets.
So as price moves to upward direction, the triggered price is being placed at intervals and when the price of the asset gets to the triggered price, the trader then begins to make profits and as it continues to move on an upward direction that signifies more profits for the trader.
Although there are certain criteria that are expected to be met before this trade is executed by the traders and I will be talking about that as soon as we are over this but for now let us talk about the grid sell entry trade order.
THE GRID SELL TRADE ENTRY ORDER
The grid sell trade entry order is the second pattern of grid trading in the cryptocurrency market. This is very tactical and just as I said earlier, it is important that traders takes proper consideration of the market before executing their trade.
The grid sell trade is done and executed by the trader after a careful fundamental analysis of the market. He or she then set the trigger price at intervals and since it is a sell order, the trigger price should be beneath the current price though not too far way but a slightly below the current price.
This is done for a sell trade as the price goes down and eventually gets to the speculated price of the trader, the price is then triggered and the trader begins to make profits in the grid cryptocurrency market trading.
Note that care should be given to this particular method of trading and it is always advisable to make use of a good fundamental analysis before executing your trade. The grid trading is the most risky trading especially when a trader set his triggered price and then the price value of the said asset begins to rise and fall simultaneously.
When that happens, no matter the particular trade that has been executed, it can result to less profits as the price keep going upward and downward and this can cause a huge loss of a traders funds in the market when the price value eventually takes a different direction which contradict the initial expectation of the trader before the execution of the trade.
CONCLUSION
In summary, one needs to be very careful when using this particular method of trading as it is very risky. Although it profits traders in no doubt but it also causes greater loss of funds and asset.
In a nutshell it all bounce back to performing a good market analysis and making sure of the activities in the market before executing your trade to avoid losses and increase your chances of making profit in the market.
Thank you all for having me today. I look forward to discussing more about this trade with you when next I am here. Bye for now!
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