Bitcoin Forum

I've just get back in trading, and I'm still on the process of learning but here are the topics you should look for to help you in your trading journey.

1. FVG (fair value gap)
- this is the first thing for me, it is important since it always attract prices, either for pump or dump, you just have to figure out your bias.

2. Bias
- this is very important, for you to avoid doing a counter trend trade. You should always know if the market is bearish or bullish.

3. Bitcoin Dominance
- this is also very important, because as of now, wherever bitcoin goes, everything follows. So even your technical analysis on some alts are giving you chart pattern for a reversal, trust me, it won't go that way.

These are my main three topics, and I have a lot more but it's all minors and I bet most of you guys know about it, like support and resistance, candle stick patterns, etc.

For traders, their most important task is to defend their capital.

It is very easy to lose capital in trading so to defend their trading capital, a trader must learn about most common mistakes in trading and compare the list of common mistakes to their trading practice.

Detecting their most common trading mistakes and correct these bad practice will help them to defend their trading capital.

Common Trading Mistakes to Avoid (https://www.schwab.com/learn/story/common-trading-mistakes-to-avoid)

This is more like Inner Circle Trader Price Action model using fair value gaps. But what's most important in this concept is liquidity. According to ICT, price moves because of two things. Price hunts liquidity through taking buystops and sellstops and rebalancing imbalances in form of inefficiencies and fair value gaps. That's how you conceive a bias, or the narrative where price is likely to go to next. Bitcoin Dominance or intermarket analysis where you compare other assets to come up with fundamentals. Here you can also compare BTC with the Dollar Index.

They are also very important and not minor. One of the most important in trading in trading is risk management and lowering your trading risks. Some traders keep failing because they do not manage their trading funds appropriately and also because they are using to much leverage and going for other too risky trades. Another important thing are indicators, technical and fundamental analysis which soke traders neglect and not studied very well.

I think that this is also imbalance.

In my estimation one cannot learn FVG before learning technical analysis. Technical analysis is the foundation for it. You cannot understand FVG unless you have learned how to identify trends, identify patterns, and also potential future price movements. Therefore, it should be added as one of the topics to also look out for when starting trading.

I will add that when starting trading, the trader should also learn about these topics:

- Order flow
- Market structure
- order blocks

That's why it's important to know what you're doing, my point is, the more you know the more you're capable of doing a good trade to protect your funds. Though sometimes, losing is inevitable since the market is always unpredictable.

You can't expect to not lose anything in trading, besides, you should expect it especially if you're just a beginner. Especially in futures, risking 2-5% of your portfolio using low leverage is a very good practice of risk management.

In starting something, especially trading, we have to expand our knowledge so that we will get something that we need to learn first before starting trading, we don't only need capital but knowledge of how the market rises and falls, what risks will occur which will cause us to fail in that matter.

When starting trading, what we must pay attention to first is broadening our horizons by studying first because knowledge is very important to do something new before starting, so that we will know what conditions will occur in trading.

For me FVG (fair value gap) works the best rather than mapping every supports and resistance level, whether it's minor or major. It offers so much information, in my opinion, since it might vary on different traders. I only do swing trades so it's much valuable for me using FVG as my support and resistance.

I initially started using support and resistance but it only makes my chart very confusing whenever I draw lines that indicates support and resistance.

And yes, most of the newbies are going to neglect proper risk management because they wanted to have a good PNL overnight but that rarely happens.

Not just about that, someone who don't know what bias is. This is also about the hype that's being seen in the market, everyone has their own bias and hype that's being done to each project that we see. If someone is a fanatic of the project that they've invested, you'd see them being biased on it and will continue to make hype on it until people that are reading their thoughts finally gets the hype on it and start buying due to that influence that investor got.

Bitcoin Dominance is useful in trading, but knowing the market direction does not necessarily guarantee profits in trading. If liquidity moves from Bitcoin to altcoin, the challenge remains in knowing which altcoin will attract that liquidity after Bitcoin.
Bias is a dangerous thing in the market because it makes you see things from a different perspective, so it is essential advice.
FVG (fair value gap) is an advanced market analysis that a beginner cannot know without technical analysis.

      -      Of course, if you are just starting out as a trader, the first thing you should take care of and don't let disappear is your capital. You should grow
it as much as possible, and don't sell it at a discount. Even if the price falls, if you have potential and the altcoins you are holding are on the top list,
just hold.

Then, while you are doing trading activity in the field of crypto, as long as you never forget the basics, always practice the basics as traders.

FVG (Fair Value Gap) is important and for traders, FVG is familiar because this indicator helps traders identify price gaps.
Emotional control and risk management are also more important to prioritize in trading because these are determinants of making good use of capital.
Other indicators expressed by many professional traders and experts in many spaces are also no less important to put into practice. For me, it all depends on the trader's readiness and consistency in doing so.

Market sentiment (bearish vs. bullish) is usually irrelevant for trades because traders work on a lower timeframe (minutes) or medium timeframe (hours). Sentiment has far too little effect here to be relevant.

This is of course different for larger timeframes (1 day, 1 week, ...), where the current market sentiment can actually decide on profits and losses. In a bullish phase, for example, I would not open a short that lasts more than a week.

agree, its impact on timeframe (minutes) or average timeframe (hours) will be very limited or even when it does happen it is rare compared to variables that occur on a daily basis.
Trading also needs to develop a general vision of the market, and Bitcoin Dominance may help with this.

Not true always, sometimes even when Bitcoin gets dips the altcoins that are pumping at that day won't get affected by the dip to huge levels. I have personally traded altcoins during the huge dips of the market and those altcoins which were pumping to high levels weren't affected during the dips.

I believe that a trader should always follow a good trading plan with his/her own strategy. One's own strategy is way better than someone else's strategy and when it's combined with a good trading plan then the chance of having profitable trades get higher.

Yes agree not all coins are affected by Bitcoin but most of the major coins are affected for every Bitcoin price action that is why there is a chart in tradingview related to BTC.D meaning dominance as you can see it is currently around 50% above meaning it still dominates most of the altcoins including memes.

That is why when you trade always analyze the BTC price action first because it can increase your validation and probability that the position you just placed has a high chance of winning that is why there is a bias included in the list above to increase your chance to win a trade.

@OP I just want to share this. Learn how to read the order book and liquidation map because it can also help where to entry and where to exit always be careful of stop-loss hunting other traders keep monitoring the market I already experienced this because my stop-loss is always hit by stop-loss hunters so beware you need to analyze price in high time frame because low time frame is usually manipulated by stop-loss hunters.

It would have been better if these topics were more like terms that can be defined accordingly, because one truth is that a trader may soon forget all these and does what works best despite any pump or dip seasons.
There's much that revolves around BTC also and am sure that the market trend at a time may also affect other altcoins and trading pairs simultaneously, while demand and supply may be a result of innovations and whale investors movements.

It would be okay as a newbie trader to also follow well established traders in the game and learn or study the strategies they adopted that works best for them. Even on social media and  real world,  being keen would direct one to the right people or mentors or posts that would help the potential trader grow.

The impact of Bitcoin on the altcoin market is of course there, yes. Mostly even in such a way that the alts reflect the price reaction of Bitcoin more clearly, e.g. falling or rising more strongly. However, this has hardly any effect on trading, as the time windows in which one trades are usually so short that neither the general market sentiment nor the current Bitcoin dominance (can) have an influence.

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What trades are you talking about here? On short time frames (minutes, hours up to a day) you don't need to analyze or consider this, as the time frame is far too short and other factors (e.g. trading volume) have a much greater impact.

For longer-term trades (days, weeks, months) it is of course different, but the respective market sentiment (bullish vs. bearish) plays a much more important role.

Knowing about risk and practicing to defend yourself and your capital from risk are different. It's big different between knowledge and practice and if you can not use your knowledge for your practice, you fail.

I am always against leverage usage because when you use leverage, you are greed and the risk is you can not control yourself to be greedier in future. If you fail in control, become greedier, from low leverage, you will change to higher leverage.

This is bad practice and you can not pray that the market and exchanges will not liquidate your positions.

There are many topics to pay attention to when you start your journey to becoming a trader. With these many topics and important things to look out for, learning to trade can become totally overwhelming for a new beginner because they can begin to wonder when they will learn and understand all the topics to be able to become very good traders. The truth is that not all profitable traders have a perfect understanding of all the topics, but the few that they know, they have made sure to have a very good understanding of them, which has made trading profitable for them.

You do not need to be a master of all the topics before you become a profitable trader, understanding a few very well can increase the profit you make from trading.

I don't think fair value gap in an advanced market analysis or a way to determine where the price should go or go back. It's just we're too familiar on support and resistance.

Also, bitcoin dominance always determine where the market should go, if I'm not mistaken, that's why it is important to monitor as well. It's called "dominance" for a reason, and so far it never disappoint me in my trades.

Introducing new terms and ways in trading is not bad as well, because we need growth, we need something more effective and easier to understand. Mapping the chart from 1M>1W>1D and using 4H>1H timeframe for confirmation will change your life. There's nothing wrong to try other things, in my opinion.

Very true, Bitcoin's price is the best indicator for the traders who want to open altcoin positions, but only when the altcoins that aren't getting highly pumped would be affected by the peaks or dips of Bitcoin. The pumped coins are often not affected by Bitcoin's value, but the rest of the coins will get highly affected by Bitcoin's value. If Bitcoin gets a major dip then the whole market will get impacted by that dip without any doubt.

I think it would be tough for a newbie to determine that who's a good trader and who isn't a good one. That's why when they follow a trader blindly and if that trader isn't a good trader but shows himself as a good trader then the newbie won't learn anything good by following that trader.

Having these type of things that look like it is a big deal, seems so important to read and learn, when in fact they are quite simple stuff. Like something as simple as "if bitcoin goes one way, most coins will go that way too" is not really a shocking thing to learn, it is literally the most common thing.

I personally believe that we just need to make sure that we do the common sense stuff and in return we are going to be doing fine as well. I know that it doesn't always feel that way, but that is how you should approach these things, I am feeling like the best way to go would be just making sure that we are on the right path and not doing anything crazy, as long as we can arrange that, we should be able to make good profit.

That's actually very easy to determine. A trader who shares every single trade, or lets you connect to their API just to see every trade history (watch only). That's a good trader.

Tell me one guy who does this and I show you 1000 guys who don't. Why? Simply because most out there are just lying about their 'successes'.

A profitable trader. Lol that is even harder to find.

Every other tips you’ve mentioned to keep a close watch on during trading are valid and more of them are there to look into before placing any trade in the market. Your technical analysis will work for you and all this tips can be used in order to get good results. But when it comes to bitcoin dominance, you’ve to respect it and follow its trend because if you don’t do that, you stand losing more money in trading. Bitcoin as the king of all cryptocurrencies is still being obeyed by all and that shows how important bitcoin is in the financial markets as well as when taking a trade in a counter direction to bitcoin.

For me, this is very helpful if you really trading altcoins because sometimes you need to take a look and analyze Bitcoin's dominance especially sometimes even Bitcoin is pumping altcoins are just sideways and not pumping also.
Bitcoin dominance also will help you to identify how strong Bitcoin currently especially during pumps on Bitcoin, volumes are being used in Bitcoin instead on altcoin  market.

Before entering any trade determine your net liquidity which is the total amount of cash or cash equivalents you have available for trading. Then determine the percentage of your account that you are willing to risk on a single trade. Many traders only risk 1% or 2% of their capital on each trade to ensure that a single loss is not devastating. However technical analysis is often associated with this style of position sizing because by its nature it provides somewhat objective chart-based action points.

It will be really difficult for a newbie to trade immediately on an exchange platform, whether it is CEX or DEX, when he has no understanding of trading. That's why what we know here is actually different.

Or if we have something to copy, we must also make sure that the trader also has a deep understanding so that we can also get a profit on the thing we hope for on the day we do it.

Accepting the fact that there are a lot of things that a trader must know and learn about trading and we are right, there are no shortcuts in learning about trading as it takes time longer than we expect. Perhaps, it was just three and a lot of more and some will just happen when we are in the set. Even experts can't tell everything about trading because some people may experience different scenarios than what they experience as well.
But all of these things OP help beginners to guide themselves on what they do first and what is next.

It is always going to be difficult for someone to begin trading when they haven't done it before. The online trading especially crypto trading is much different than trading of goods. That's why someone should first learn trading by reading trading related books, watching trading related videos, and observing the market's ups and downs.

Once someone understands that how the trading thing works then he/she should begin trading with small amounts. I know some people suggest newbies to start trading with demo accounts but I don't prefer demo accounts as they aren't helpful to make profits as a trader. Many of the traders who mastered trading with demo accounts have lost money when they begin trading with actual money.

Even though trading of goods is still a kind of trading, I think yeah I can agree with you that crypto trading is still different. It is because they are currencies and the more they depend on price. That is why we have extensive charts and market analysis for them. Doesn't matter what type of trading we pick up, learning is always a must and the basic, before we start on the actual thing.

Demo accounts are fine for a newbie but it can be optional once you already gained enough experience. Crypto markets are very volatile. This might be the reason on why we can master the demo trade but when it comes to the real trade the results changes quickly or vice versa.

Aside from learning everything about trading, setting aside of you capital is also advisable so you wont be exposed that much.
Beginners will always be emotional, and if you have bigger capital at first you might be tempted to trade everything that's why its ok to start at a small capital first and when you are already learning and know how to timing your trade, then that is the only time for you to review if you can still afford to increase your capital or you'll stick with your current liquidity.

Apart from fro having the capital to trade in the market, it is also important for us to know why we are trading.
It is true that we an make lots of money in trading but also we have to be prepared and learn the necessary things that would aid us to be some a success trader not just being in the trading markey making profits and losing it at the same time. This is one of the problems many traders have been facing and they have no option than to stop trading because they can not keep a consistent profits.

And if you have invested such amount of money, and you refuse to exercise patience in your hodling in the bear season, you will going to experience loses in your trading because professional traders use to trade their coins when the price is high in the market.

Trading determine knowledge, and if you have the knowledge of trading, it will allow you to take profits from your risk because in every risk you face in trading,there is a big reward waiting to happen to change your story.

Try to consider your research before trading because it will help you not to miss it like other traders, who don't carry out research before trading which is not advisable to traders.

Trading is not just about profits and losses but how you manage your capital wisely without the slightest mistake, in trading.. your emotions, thoughts, time and money are sacrificed so when you fail to manage your capital well that is the beginning of your downfall as a trader, needs years of practice to be able to have good emotions and also good instincts in managing finances in trading, so do it and learn as soon as possible.

True, other than learning or focusing on profit, a trader should always invest and also give time and effort to widen their knowledge and skills when it comes to trading. As we know, markets are very volatile, and anytime there might be a new movement, so in order to cope, a trader should always and constantly learn and hon their skills when it comes to trading. In that way, a trader will have little to no problem earning through trading. Remember, it's good that you are earning in trading, but it's more fulfilling if you have a little problem coming up with a technical analysis with ease, executing the analysis, and, of course, earning. Don't let the profit or loss go through your head; it's part of the process. If you will not learn from those losses, then it's your own problem; not being able to grow or be more skilled despite those mistakes means there's something wrong with what you are doing.