Hello. Here on the forum i always find a lot of topics like "hodl or trade" or "i lost everything"(as a result of bad trading strategy) and i decided to write some basic, important and useful tips about trading.
At first, i should say, that trading is definetely better than hodl, because you can forsee the situations like the current strong correction and save your funds (or loose less, then with hodling). However, when you start working with your depo, you take risks, that`s why, if you are not ready to do it or you dont need stable profits, you can just hodl and you`ll definetely become rich, but in the future.
Now, let`s start with the basics. At first, you should understand, that majority never wins, that`s why triangles, indicators and other basic instruments should not be the your main choice.
The best way to trade is to watch for the bare graphic and volume index.
Lets set two notions - sellers and buyers. Sellers are always at the top of the graphic, buyers - at the bottom. Both groups are used to create their own zones and levels. They are shown at the picture.
https://www.tradingview.com/x/7XE5K3rY/ Zones appear when several candle sticks lies in some price range and and all the movements toward this price range cause volume, bigger than usual.
That`s why the price will move in the price range between buyers and sellers. Sometimes, price can brake those zones and consolidate above it, and if it was seller zone, after braking it will become new buyers zone. The same works for buyers. Also, consolidation creates the potential for the continuation of the movement.
https://www.tradingview.com/x/6h8OMDB3/The goals for the movement can be detected on the higher timeframe with consideration of the previous zones.
https://www.tradingview.com/x/n9erB3MG/If the price broke all zones in any direction and you have no zone for detecting a goal, you can use fibonacci extension (trend based fib extension in tradingview instruments). Set the first point at the beginning of the movement, the second point at the previous top, the third point at the beginning again. In settings choose boxes with 1.272, 1.414 and 1.618 to display them. Usually, price aims to those indexes. Example:
https://www.tradingview.com/x/1Iq8ycIV/Using these strategy, you can trade inside those price ranges and trade the breakouts after the consolidation. This is quite conservative and rarely used working strategy.
But dont forget to educate, and if you add, for example, eliott waves to this one, your trading will be even more effective.
These were the basic tips for trading, that may help you someday:)
I will be glad if you share merit with me:)
Have a nice day!
