Newbie looking for some strategic advice

[rvdz2002]

Hi all - I'm now to the forum and new to crypto trading. For the last couple of weeks I have been studying various charts and patterns using TradingView.com and reading lots of blog posts, articles, news, videos, etc. There is quite a steep learning curve to it - especially the technical analysis, but I think I'm slowly getting the hang of it - I've (fairly) accurately predicted a few trends on some crypto currencies I have been watching - I'm just trying to gain as much experience as I can.

I understand about spreading risk/hedging bets, and have a budget of about $2,000 which is what I could afford to lose (although I'd rather not!) and have created a bitcoin wallet and have opened an account on Binance.

Anyway - having read lots of articles I'm thinking of three, maybe four, possible strategies and I'm wondering what you guys would recommend a newbie like myself should focus on;


1. Long term trades - buy into various currencies where I believe they will increase in value in the long term. I have identified a few and think they may be profitable in 6-12 months or so.

2. Short term trades - I have seen some people describe this as "swing trades", where with some technical analysis I try to buy currency at a low point with an aim for it to increase in value and then sell it. Timescales being a lot shorter; maybe days or a couple of weeks.

3. Identify new and upcoming coins - the idea here is to research coins that are fairly newly launched. I need to do some more research if this were a viable option, but picking the right coin to buy into early could be very lucrative.

4. Short selling (margin trading?) - This is probably not a good idea at this point, I understand the concept of short selling but don't think I'm ready for this yet.

- Or if I'm completely on the wrong track or have missed anything, just let me know!


Looking forward to reading your views. Thank you in advance.

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[Ucy]

Try weekly trading. Volatility is quite low in day trading thesedays. You have to be an experienced trader to succeed in day trading. If you must day trade, focus more on the little known volatile coins. They are very risky to trade and very rewarding too.

The weekly trade is more profitable.

* Not sure if Number 3 works often thesedays.

Have you tried demo trading? . There are couple of websites where you can trading with Bitcoin and other Cryptocurrencies without risking your $1000. Demo trading basically allows you to trade the real market but with fake cryptocurrencies. Great for anyone who wants to experience real trading without taking risks.
Demo trading sites:
https://altcoinfantasy.com/
https://niffler.co/
https://hitbtc.com/
https://www.cpaytoday.com/trialbitcoinexchange/
https://testnet.bitmex.com/

[arpon11]

After reading op post I concluded that he no much about the trading. You just need to perfect your knowledge and developed strategy that will put you ahead of others. Remember that you may not need to learn all the indicators in other to become a successful and skillfull trader! For me, I completely build my trade around pin bar in candlesticks formations and using volume indicators to know the reversal level and the strength of the trends. It has been helpful to me. Another very important things you can add to your strategy is patient. Without patients, you will keep losing money in trading

[Slow death]

let's go to the practical example:

1-) You have  $2000 and buy bitcoin now for the price of $9500 and Hold until the end of next year. I estimate that by the end of next year the bitcoin price could exceed $20,000 which would give you a very decent profit with little risk of losing money.

or

2-) You buy a lot of shitcoins and at the end of next year you get big losses.

which option will you choose?

[leowonderful]

It's really up to you and your personal preference in the end. The strategies you've listed can all potentially be profitable if done correctly, but everyone's trading style is different and you won't really know what you're best at until you try. I'd also agree that your third strategy's likely not going to work as well as the others considering how most alts have been doing in the last few months, though. Most alts have been in a slow bleedoff for months, and it doesn't seem to be getting any better yet.

Short selling and longing with leverage can be profitable if you're sizing your trades properly and setting good stops, but there's still significant risk involved, but my favorite's shorter and medium-term trading. I don't have to spend a lot of time setting up swing trades, and they can be plenty profitable if things move in your favor.

[harizen]

Since you now have at least an idea what you are dealing with, I believed you can manage your plan along the way. Test those and see for yourself what will be the result. Even you saw others suggesting this or that, we might have a different result in the end.

However, since you are new or should I say undecided on what to do, I suggest to refrain doing the number 2 to 4 "for now" but instead focus first on number 1 on which Bitcoin is your main coin on your portfolio (which also has a large quantity).

Lastly, don't play with new coins. Just consider dealing with them if you understand the risks or totally ignore them at all.

Well then, goodluck.

[andreibi]

1. Long term trades - What you meant here is hodl. Your portfolio should be diversified like 40% Bitcoin 30% fiat 30% altcoins you think will mewn.
2. Short term trades - The altcoin market has zero liquidity now. The only market to trade is Bitcoin and margin trading is the best way. See https://oliodigest.com/why-just-holding-bitcoin-wont-make-you-rich/

3. Identify new and upcoming coins - Ah, buy in early?  If many have the same idea like yours, it will shoot up quickly but alts are still in bear mode, might as well look for coins with fast development.

4. Short selling (margin trading?) - You can do demo trading first. Check the url above.

[GreatArkansas]

Welcome to the forum and I am glad you are interested to learn to trade.
First, you are right, you should first explore by yourself, like you said, reading some blog posts and exploring some chart providers like tradingview.

For me, you should try some basic first in technical analysis, like supports and resistances, different tools in charts, like the trendline, and Fibonacci retracement (very important).
Although, we can say that maybe we have a different style for trading, like if you are planning to do some Elliot wave trading, but you still gonna need to learn how to identify the supports and resistance in different timeframes for sure.

Risk Management - you should study this also, like you are going only to allocate particular of your funds in every trade you does, like 10% of your available funds in the trading account. Risk reward ratio also, which you gonna need to put stop loss on every trades you do.

[nydiacaskey01]

Start with making your first trade being a day trader and see if that strategy fits you. It will ask you for a lot of your time since you need to monitor the price movement a lot.For me, I switch from day trading to long term, it depends with the market condition. There are times I am forced to sell even at loss if I see better coin or one with better potential of gaining profits.

[Ararbermas]

I suggest play some demo first .so that you can obtain strategy and to enhance your skills.  , and also bear in your mind to always follow the basic rules because that's the most important here when it comes doing trading.  .if you have problems with it then make a research,,in fact all of the information could be easily found on google using the simple research. So before asking here in forum make your own technical analysis also.  Regards

[Janation]

I suggest play some demo first .so that you can obtain strategy and to enhance your skills.  , and also bear in your mind to always follow the basic rules because that's the most important here when it comes doing trading.  .if you have problems with it then make a research,,in fact all of the information could be easily found on google using the simple research. So before asking here in forum make your own technical analysis also.  Regards

This is a good idea not just for newbies but also for the platforms that have this.

I knew a trading application that already has this and it is really amazing since you will be able to try out your plan in order to see whether you will be having a good profit or not. Though it might not happen the same with the real ones, at least you have the idea of how it might work. Since most of them are said here, the only suggestion I had in mind is to keep reading. A lot of books out there written by famous and experienced billionaires, you might be able to pick up some tips and tricks you can use.

[michellee]

You say that you have budgeted $2000 to start trading, how if you use $100 to try trading? You can try with short term trading, or you call "swing trades" so you can know the feel of trading. The important thing here is you should practice what you learn so you can get experience in trading. You can use $100 to buy various coins but don't buy the expensive coins because the increase in the price will not be too high as the cheap coins price. If you can do that over and over, I think you are succeeding for learning to trade, and you can move to the next level of trading. But if you cannot make a profit in every time you trade, then you should continue learning and practice.

[Hypnosis00]

I suggest play some demo first .so that you can obtain strategy and to enhance your skills.  , and also bear in your mind to always follow the basic rules because that's the most important here when it comes doing trading.  .if you have problems with it then make a research,,in fact all of the information could be easily found on google using the simple research. So before asking here in forum make your own technical analysis also.  Regards

I believe OP has their own TA's and a knowledge of trading but only don't have enough trading experience which lead her/him to ask some sort of. advice fron the community.

It has to think that most of the successful traders starts at small capital. How is it good to do what they are doing before? Not to be so much excited and think instant profit in trading, yet it takes for a while.

[binhvo1505]

In each of these fields, there is a need for different human factors. and this only you can understand.
For example, for me, I'm a person who likes instant results and I really belong to short trades. After you've identified the type of work you want to do, learn from the previous ones. Then there were the tests with a few hundred dollars.
That's how I grow every day in the crypto market. You can refer to me.

[MonsterV]

You say that you have budgeted $2000 to start trading, how if you use $100 to try trading? You can try with short term trading, or you call "swing trades" so you can know the feel of trading. The important thing here is you should practice what you learn so you can get experience in trading. You can use $100 to buy various coins but don't buy the expensive coins because the increase in the price will not be too high as the cheap coins price. If you can do that over and over, I think you are succeeding for learning to trade, and you can move to the next level of trading. But if you cannot make a profit in every time you trade, then you should continue learning and practice.

Right, a newbie should not have too much capital to trade. Well I used to also capitalize $100 to trade and increase amount as my analytical skills increase. It is very risky when directly with large capital because we will never know what we have not learned. If it is felt that knowledge is enough then increase investment capital gradually, I think that learning to trade is quite safe.

[Questat]

I may say not only newbie have looking for strategic advice but also those who just started already. Not really have fun in trading and it seems to be difficult when we suffer losses and as well as trading decision. Strategies will vary in every market situation we had, not all the time we should stick into old and genuine strategies, yet to find it obsolete and we need to escalate our strategies to the most effective and applicable one. 

[voltesbit777]

Most of the strategic tips was day trading, only things is not that easy to get the technique of it. Because even me
I'm not fully expert in it, although, I made a profit but not that huge unlike what other traders did, every time they do the
actual activity in the exchange site platform.

[rvdz2002]

Thank you all very much for your advice, it's been really helpful reading through the comments and some of the other posts on this forum.

Some of you suggested to start with day (short term) trades using small amounts of money. I think that's how I will start and see how I get on.
Just some practical questions now - assuming this is all regarding day trades:

- On TradingView.com, when you analyze a chart, do you look at the hourly chart, 2 hours, 4 hours?
- I know it's called "day trading" but how long should I expect to hold on to a currency on average - hours, days?
- What's an acceptable and sensible target profit percentage and stop-loss percentage?

Thank you again!

[sana54210]

It depend on the level you have build yourself to in the trading system and how conversant you are with it. If I am to advise you as a newbie, I would advise that you go for a long term trade but on the basis that you are not yet familiar with trading and you have not built any strategy to support you for short term trade, but if you feel that you are already an expert, you can go into short term trade.

It is better as newbie to just buy and hold coins, then use the period that you are waiting for your long term investment to yield result to learn more on trading, at least within that period you would have become a guru to start trading on a short term trade. For now, just stick with long term investment but make sure that you research those coins first before buying them.

[Herry Toms]

I think there would be no problem if you are accepting your risk in advance. Now you can trade from an natural perspective which is always best for traders. If you really want to learn Price action charts, then study Nail fuler searis "Learn to trade the market" and wrote a book named "The Discipline trader" by Mark Douglas. These are good sources to gain some knowledge about Crypto.