In the first part that we studied, I simply explained to you the basic idea to understand Crypto trading or Trading easily. Now, what I am going to teach you is the different trading styles used by different traders in the world of cryptocurrency.

Anyway, you already know the concept of basic trading that you buy at a low price and sell at a high price in a short period, easy. But there are many types of trading strategies that can be chosen, Every trader has his preferred style and it depends on their availability. So in this part 2 that I will discuss you will discover which trading strategy suits you, Let's get started.

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1. DAY TRADING
     What is day trading? This is the way to trade in just one day. For example, A is a day trader, he will buy an asset today and after an hour or 2 hours, he will sell it. In short, in a short time A was able to profit from the market, easy money, isn't it? If you look at it, it seems very easy, but in reality, it is not.

It is only suitable for experienced traders, but many novice traders are allowed to enter it. A day trader is kind of in or out of the market within the day. That's why day trading is quite stressful. Mostly because they trade in the lower time frame between 5mins - 1hr.

It is also applicable to people who do not do much and can monitor the market movement at all times. Because execution is fast in this style like winning fast and losing fast. But the profit obtained here is not that big, unlike swing trading.

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2. SWING TRADING
      The idea is to capture the swing, the trade can last a day or a week. This means that if I am a swing trader and I enter the trade now, I will not immediately exit the market later. Because it can take one, or two days, even a week before I exit the market.

A swing trader also often trades in a higher time frame such as 4 hours or daily. It is not insignificant that the profit of a swing trader is greater because the trend that it follows is greater than that of a day trader. It's also not too stressful because they don't have to watch the market minute by minute. They can enter a position now and they will return to it tomorrow or the next day.

This strategy applies to people who don't have time to watch the market minute by minute, it can be done part-time.

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3. POSITION TRADING
     This is long-term trade, they are the traders who follow the trend. They aim for much higher profit, their trading takes a few months or a few years. They make the trade on a higher time frame daily to the weekly chart.

What these traders look at is the big picture of the market. They use Fundamentals and Technical analysis in their trades. They also ignore price fluctuations in the lower time frame or what is called market noise. Because they believe that this is normal and that the value of their trading position will continue to increase.

If the profit obtained by the swing trader is large, the profit obtained by a position trader is greater, because they ride while the market is trending. Position traders are patient people, they will not sell their assets immediately even if their value has increased, they aim for a higher price. And it is suitable for people who are busy in life and have a full-time job.

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4. SCALPING
     Just think of this as the day trading extreme version, because these are the scalpers who participate in the smallest time frame like 1 min. or 5 minutes time frame. The motive of scalpers is to get a small profit but a lot, so if you combine the small profits it will be big. Anyway, scalping is not advisable for beginners. Because of this, you need to make quick decisions, and you also need to be well-versed in technical analysis. But many beginners trade as a scalper. You can't blame them either, "People like to get rich quickly" they are wrong here.

Trading is not a quick rich theme, it takes time before you become a profitable trader. In today's time, especially in crypto, beginners can become scalpers, their experience will even be faster if they do scalping style. But they have to pay a higher price.

As I mentioned, you must be well-versed in technical analysis. Because if you don't know anything about technical analysis and you enter scalping, you are not called a trader, but you are a certified "Gambler".

These are the four trading styles, and they each have their pros and cons, some people are suited to day trading and there are also swing trading. It is based on a person's personality and situation. If you have a full-time job and want to trade, then you can start swing trading.

If you don't do anything and just hang out at your house and you have a lot of money, then you can start day trading. Although this trading course is about trading, it is also important that you know the basic Investing strategy. So I included it here. Because most successful traders also have hidden investments, and the most common strategy in Investing is what is called Diversification.

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5. DIVERSIFICATION
      This is the "Don't keep all your eggs in one basket"
That means if you invest in something like Stocks, and you put all your money in it, then suddenly there was a market crash and the value of the stocks dropped, and you lost money immediately because you only invested in one asset.

The idea of diversification is to diversify your money into different asset classes. Meaning, your investment is scattered, for example, if you have 100k$ capital and you want to invest, instead of investing in just one asset you invest in different asset classes. In stocks 10%, in Gold 30%, Bitcoin 50%, bonds 10%. In this example, you used the diversification way. If Gold crashes, stocks, and bitcoin may rise. Meaning, you can't be zero, This is your protection in unexpected scenarios.

In the cryptocurrency market the idea is the same, you choose coins that you think have strong fundamentals. And the price may fly up in the future and you will divide it. It could be a combination of large-cap, mid-cap, or low-cap coins.

When it is said Large cap, it is the one with a high market cap like Bitcoin and Ethereum. In the large market cap, the risk is lower, because it has been tested over time. So, here it is better to allocate a larger percentage of your investment.

The Mid-cap is playing coins from 1Billion to 10 billion, For example here are Monero, Stellar, and others. Midcap coins are riskier than large-cap coins.

Low-cap coins are anything below 1B market cap, these are the high-risk and high-reward coins. Because here the chance of the value becoming zero is higher than in midcap and large-cap coins. But the low-cap coins have a bigger growth opportunity, so this is what they call "Moonshot coin", there are also many scams in the low-cap area. So, be very careful in choosing a low-cap coin, as I mentioned in diversification, you can divide it into the asset you want, depending on your tolerance.

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6. BUY AND HOLD
      This is the common strategy of investors, and the most famous for using this strategy is Warren Buffet (The greatest investor of all time) This is one of the richest investors in the world. His strategy is very simple, it is Buy and Hold, like he will buy stocks that are undervalued, then he will hold them for 10 years or more, and when he makes a profit, he will sell them.

It's one of the easiest to do, it's not stressful, you don't need to pay attention to the fluctuation that happens in the market, and it's for people who have a lot of patience.

Holdings are also a trend in cryptocurrency, crypto is very profitable when it comes to holdings. And the best example here is Bitcoin because its value in 2010 was only about a cent, just kidding, if there was bitcoin at that time, how much would it have been, so its variation today, it is indeed the best-performing asset in the decade, and another example is Ethereum, in 2015 its price was only about 1$, but look at the price now, so if you only invested at that time in ETH and held it until now, I'm sure it's profitable that and he's probably a millionaire. Trading and Investing are almost twins, and you can combine them as others do.

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Now you have an idea of the basics of trading and the basics of investing, which one suits you best? So, see you on the next part episode of this course.

Part 1 episode Basic understanding in Trading

Hello to all the community in this forum,

    Many people request a basic tutorial here in this industry. And I also have other friends who are asking how to trade. so I made a topic here for those interested in learning crypto trading. If you have no idea about the financial market and trading, well, this can be your stepping stone, I will explain simply the things you should learn about trading. And you don't have to think that this is paid because I will do it for free and without asking anything in return, just to share my knowledge about it that's all. There are many parts to this that I will teach but for now, we will start with Basic Trading.

I know many people have made such topics, even on various social media platforms, but most of those who have seen or read it did not immediately understand it because of the depth of the words being said. So when I do this I will make sure that anyone who wants to learn crypto trading can understand it.

If people are teaching, coaching, or mentoring, there is a fee for the mentorship. But why to pay when you can study for free, It depends on the person, because there are people who find it difficult to learn something without focusing. And if you can learn it on your own and you are determined, it is not impossible because you can become a profitable trader one day.

The other trading tutorials that I see are basic but right away in trading, so people who think it's easy to trade will immediately enter the war without even a basic foundation in trading. And what will happen? they will pay a higher price, that's why in the beginner's guide I will teach all of you what you need to know about trading, So let's start.

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What is TRADING?
Personal view: All of us are probably familiar with the word "Trading" we do it almost every day of life we have and we just don't notice it. When it is said Trading it simply means "One item for another" When we bring it to the financial market such as Stock, Forex, and Cryptocurrency, it means as a trader we exchange money, shares, or coins with various traders worldwide online. But our motive why we want to enter trading is to make a profit or get money. We will buy at a low price and we will sell at a high price, a simple BUY and SELL and we will do it in the financial market. But why does the price of an asset go up and down?
Simple economic SUPPLY and DEMAND, when the demand for something increases and its supply decreases, the price will increase. When the supply of something increases and the demand for it decreases, the price will decrease. And this happens in any market in Stocks, Commodities, and Cryptocurrency.
Because of the rapid increase of an asset, traders see opportunities to buy and sell in a short period, and this happens on a daily, weekly, and monthly basis or even within a minute that you can participate in trading. In other words, Trading is making money in the short term and Investing in the long term.

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Let's go to Investing,What is INVESTING?

Personal view: This is the way of buying an asset in the belief that its value will increase in the future, in the form of income payment or capital gain. In many things we use the word Investment, like investing time in something is a form of investment.
But in financial words, this is the purchase of securities, real estate, and other things that can provide income or capital gain to an investor.

What investors usually look at in a particular asset is its fundamental value, if there is a potential for the value to increase in the future, they don't care about the daily fluctuation that occurs in the market, unlike traders.

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What is the difference between trading and investing?



Personal view: Simple Trading for short-term gains or a small profit, and investing for long-term gains or large profit. Although Investors and Traders have the same motive in entering the financial market to generate profits, they have different approaches. A trader actively participates in the market and an investor does not. A trader takes advantage of the daily fluctuation of the market to make profits while Investors is aiming for larger gains. So who is better Trader or an Investor? the answer is, it depends, do you want to be a trader or an investor? It's up to you to decide, when you expand your knowledge of the market you will discover for yourself where you fit in, be it as a trader or an investor?

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What is FUNDAMENTAL ANALYSIS?

Personal view: This is the analysis of the intrinsic value of an asset, good investors know if an asset is under value or over value. They study things that affect the price evaluation of an asset, such as the state of an industry. When an investor notices that the asset is undervalued, they will buy in the belief that this asset will increase in the future through a simple BUY and HOLD strategy. So far how is it doing in the cryptocurrency market? In the case of cryptocurrency, the process is different, what is measured here are the on-chain metrics such as the network hash rate when it is at an all-time high, when the addresses of a cryptocurrency projects increase, and many others. Fundamental analysis is also often used in Stocks, commodities, and Forex, but so far it has not materialized much in the cryptocurrency world because it is new to the financial world as far as I know. Right now the market is mostly driven by speculation and narrative.

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Let's go to the technical analysis.
What is TECHNICAL ANALYSIS?

Personal view: This is the methodology used to get an idea of where the price direction can go in the future by studying past data. Because traders believe that historical price actions in the past can indicate what may happen in the future if the price will increase or decrease. It can also be said that it is a study of mass psychology that is a combination of science and arts, technical analysis consists of studying price action, volume, chart patterns, technical indicators, and many others.

It also helps a lot in the framework of risk management. All traders use technical analysis in any market, stocks, Forex, and cryptocurrency, so if you learn it, for sure it can be used not only in your cryptocurrency, but you can also trade in other markets.

Now you wonder why it applies to all markets, they have one thing in common, Human in a world meant, the market lives on the Fear, and Greed emotions of the participants. Because when traders or investors fear the uncertainties of the market, they sell their assets at a low price, which in turn causes their prices to fall. And when they are excited because they see that the price of an asset is increasing, they don't want to be left behind and they buy it thinking that its price will increase. This is why an asset goes up or down in the market.

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The Next is Market Trend,

WHAT IS MARKET TREND?
Personal view: This is the overall market that can go up and down, and there are two types called the Bull market and the Bear market. So, what does this mean?

Bull Market - this is the period where the increase continues, there is fluctuation but the overall trend is still up. This is the time that investors and traders are waiting for because the assets they hold continue to increase. The more greed and excitement, the easier it is to profit in the bull market and this is what most people are waiting for.

Bear Market - This is the opposite of the bull market, this is the period when the market falls, and continues to fall. This is the dreaded event of investors and traders. Because during this time the value of the assets they hold has decreased.

There are times when the market does not run up and down, sometimes it is flat and moves sideways or back and forth, or this is the so-called sideways movement of the market.

MARKET CYCLES - we have a saying "The World is Round"
this is also how the market works, sometimes we are in a Bear market and sometimes we are in a Bull market. The market will not stay in a bear market. It may take a while but everything has a limit. After a bear market, there is always a bull market. in the study of technical analysis we can easily know the trend of the market as a trader there are certain indicators we look at so we can identify them. Part 6 of this is what we will study, so far I have shared and explained only Basic ideas and understanding about trading.

So I hope this helped somehow, See u on next part

Thanks for this things Sir, at least since this is my first post I am thanksful that I  read this reminders of yours to any newbies like me.

I will do follow all the rules that this platform has. Good day