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lovebts
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April 19, 2018, 02:34:16 PM
 #1

Bitcoin and a couple of alts (ETH, XMR) have quickly become a huge interest of mine - after reading and thinking for some time I got in approximately 6 months ago, approximately 80% in BTC. Since I truly believe in the fundamentals I will definitely hodl the majority long term, buuuuut I am also tempted in adding some extra money for more frequent trading. Any gains would go to hodl... So far my most advanced strategy has been ""buy when it feels low"" (which has been accurate about 33% of the time...), but I would like to improve somewhat and both buy/sell with the new money I'm planning on adding.
Where should I start? What should I learn about? Even though I'm somewhat sceptical towards TA, does it work? Should I learn more about ""trading psychology"" and try to play bear/bull sentiments? Should I slowly start getting my feet into margin/leverage trading? Other advice?

Unfortunately (?...) I don't have time for fullt time day trading, so my goal is to be moderately active.
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TomCrypto
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April 20, 2018, 01:06:11 PM
Last edit: April 20, 2018, 02:14:38 PM by TomCrypto
 #2

Everyone has its own strategy considering how to distribute its investing between day trading / short term trading / medium term trading / long term trading / holding. Each strategy of distribution could be good and depend on the mind of the trader and how he want to trade. But diversification is indeed a key element : diversification in term of different time period trading (it's good to hold a percentage of your asset and to trade the other portion) but also in term of coins/tokens, "don't put all your eggs in one basket".
Concerning your question about what to learn :  Technical Analysis is just a part concerning price forecasting in crypto.
And there is many ways to perform TA : you can try to search patterns in the price (triangle, double bottom, double top, head&shoulder, Cup and handle, channel, pennant, diamond...), find some repetition of a scheme (fractals), use indicators (MACD, RSI, ADX,....) , use some Fibonacci mathematical tools (in term of price level, of time period,...) ,... There is a lot you can do and you can always find something that will support your price prediction.

In addition to TA, in order to try to do more accurate price forecast you have to take into account market sentiment (what you call trading psychology) : how the crypto enthusiasts will react to the market will depend on their confidence into the market, on the news on mainstream media, crypto media, twitter, influencer, on how the price is increasing/decreasing....
But also fundamental analysis (how solid is a crypto project, does the team is capable on delivering, marketing, finance, token economy, ...) is important (you seem to know about this part)
Those three tools must be combined to allow better understanding of what is driving the price.

But as always, those three tools are not perfect, and you are not away of one unexpected move from several whales or some price manipulation. "Shit Happens" Smiley
Never take someone investing advice blindly without doing your own due diligence that the main advice I can give in trading.

For my experience, Technical analysis in crypto is stronger than in forex market. Indeed, more people in the crypto world seems to have knowledge of TA and they try to follow some pattern. In forex it works also but I find it less effective. On the other end, fundamental analysis is less efficient in crypto than in forex (when you see so much scam project having huge market cap there is a problem!). Market sentiment seems to work equally on forex and Crypto for me.

If you want to learn more about TA, there is several platform that could help you : investopedia have some good reading about it, there is a lot of video and tutorial in youtube. Tradingview is also great for learning : follow the top trader in this platform and you will learn from their post. But as always Never take someone investing advice blindly

One last piece of advice : Don't touch leverage trading! Long and Short trading is great but leverage is really reserved to people who know what they are doing and that are able to sustain big losses. You can try it if you really want but limit yourself to really small portion of your investing

Good luck in your trading!
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April 20, 2018, 04:49:43 PM
 #3

Going off what TomCrypto said regarding youtube tutorials, check out Coinmastery and DataDash channels--you'll find tutorials, tips and lessons geared for traders--from beginners to more advanced. Might be worth a look.

Cheers!
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April 20, 2018, 05:10:29 PM
 #4

I'd like just to add some few stuff, for the previous answers where fabulous.
First of all, I consider the Bitcoinwiki to be a really nice and complex place to seek for information: https://en.bitcoin.it/wiki/Main_Page
There you will be able to understand many complex concepts related to blockchain, which I find to be essential to achieve a full panorama related to how the crypto world works. Why it matters? Well, if you are going to use something, why not understand fully how it works? Maybe you can get some nice ideas from it.

Secondly, in my experience, day-trading can be something exhausting. So, to me, there are several points to follow:
1.- Never invest non-expendable money. If you are investing the money you need to eat, then you won't be able to have a cold-mind.
2.- Choose well and learn as much as you can about the coins you are interested in, but never fall in love with one. Investing is not about being "loyal" to any project, but to try to get the best profit. So you don't need to love any coin, you don't need to have any kind of feelings towards a coin.
3.- Make some proofs even before putting in there your very first dollar. Why? Because you can be wrong, as everybody in a training process. So just play for a few, enjoy yourself, watch the market...
4.- Distribute your time. You don't need to be all day thinking about trading, this is insane, and you can be obsessed and, with that, unable to maintain a cold-mind. If you decide to invest, then maybe it is better to stay away from your investments (mentally) few hours per day, so you can go back to them with the clearest view. To me, it was one of the most difficult lessons I have ever learn, 'cause I'm a really obsessive person. But when I understood it, my investments were much better.

All the things that have being said to you are really good points,
I hope you have the best of the lucks. Trading, somehow, can be little like gambling, so consider you can fail sometimes, but, with time, surely you will succeed.

Best of lucks, man!

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April 20, 2018, 07:58:47 PM
Merited by Micky25 (1)
 #5

Bitcoin and a couple of alts (ETH, XMR) have quickly become a huge interest of mine - after reading and thinking for some time I got in approximately 6 months ago, approximately 80% in BTC. Since I truly believe in the fundamentals I will definitely hodl the majority long term, buuuuut I am also tempted in adding some extra money for more frequent trading. Any gains would go to hodl... So far my most advanced strategy has been ""buy when it feels low"" (which has been accurate about 33% of the time...), but I would like to improve somewhat and both buy/sell with the new money I'm planning on adding.

be careful trading on your own sentiment alone. that leaves you prone to emotional trading (which might account for your accuracy). often the mind works like this: price rises, which causes your blood to boil as you're waiting for entry. price then reverses, filling your bids as you "buy the dip"---price felt low, etc. but then, price keeps falling. Wink

Where should I start? What should I learn about? Even though I'm somewhat sceptical towards TA, does it work? Should I learn more about ""trading psychology"" and try to play bear/bull sentiments? Should I slowly start getting my feet into margin/leverage trading? Other advice?

the above is why it's worth learning technical analysis (TA). you need to learn how to recognize tops and bottoms to give you an edge in trading. left to emotions alone, you'll probably be left bagholding.

TA is not a crystal ball. it gives you some tools to recognize setups that have a probability of working out. nothing works 100% of the time, or even 80-90% of the time. that's why trading is hard work. TA is about providing setups to trade. then you need to employ risk management to ensure that you don't let your losses run. over the long run, if your setups are valid, then you should be profitable.

babypips is a good resource for learning TA and risk management basics. it's aimed at beginner forex traders, but the principles all apply to trading crypto: https://www.babypips.com/learn/forex

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