In last days I seen people that never touched a screen to share they're idea about crypto trading, when or what to buy and why....
Trading or Crypto Trading is a serious job, and has to be taken as that. But if you want to start to trade, keep in mind that last moment guru has no idea what he is doing.... we can never predict the price, or be certain 100% of next direction...
Now , if we go back in time, analyze graphics, we can see that some pattern repeat with time, there is some psichological price that show precise action but there is always exceptions...
Most important things when we take a trade, we know what we are doing, before of a single click of mouse...
we want to leave our emotions out of the game, like this we can analyze in better way and have clear idea of what is going on..
For trading at least for start trading, we need 3 things
- Action Plan
thanks to the tool we can analyze and prepare our action plan, with perfect risk managment we will keep our loss small and our win big
we have to stick to a plan and go with it whatever it's happen, like this we will not be in trouble o get bad surprise that will crash our bankroll
now let's go on with a real example:
as we can see the blue lines shows the prices direction and that price didn't go under that line (support)
we take this as good entry point, this give us less risk as often price will pullback up.
so in this particular moment we can think of entry position
where do we take profit or put stop loss??
Stop loss goes just undr the blue line
and take profit on previous support /resistance
in this case with a $10.000 budget and 2% maximum risk we can go with buy position
Our stop loss is 8% of trade , so here we can open a position with $2500 * 8% is exactly $200 , 2% of our bankroll
for take profit we have 2 spots
first is shorter term and psichological price 25000 satoshi this gives us $ 825 profit here is up to us take off some, or total or let it run
second medium term gives us $1775 profit or we can go long time or holding time for $5900 profit or 308% $7700 profit
considering we stop at first target, we risked 200$ for $825 profit is definitly a greate trade to take
as you seen we used tools for create a plan witch gives us rules and actions to take
Note: i do analysis on bitfinex most of times because there is longer history
please let me know if you liked the post and how I can improve it