Do you want to be a technical analyst yourself?

[sana54210]

I would like to interest people with another book, which is related to investment but not trading or not technical analyst at all. Intelligent investor, that books is by Benjamin Graham and it is literally "intelligent investor" and it is about value investing and it would help you out a lot.

Maybe not so much in crypto considering we do not have a "value" like stock prices do, they are based on companies and if you read that companies books and basically do a small audit of it and you check the price of that company's stock you can decide if it is undervalued or overvalued and make your moves based on that. However it will not be too huge for crypto investment, you could still decide on some things there but it will not be that much worth for your time if you only care about crypto.

[exstasie]

Wouldn't a neural network be better suited to be a technical analyst than any human? Technical analysis tells us that the market is full of patterns and it's only a matter of recognizing them, and neural networks are exceptionally good at recognizing patterns if you just feed them the data. How well do the trading bots actually perform compared to humans? Is it worth trying to train a bot yourself, or is it too complicated for someone without a strong background in neural networks?

I know a couple people who program their own bots. For pure price action traders, that route is way easier because the logic is so easy. Mostly just stop buys, stop sells and take profits, based on pivot or candlestick breakouts or failures.

A friend once advised me never to run a bot unless you program it yourself. He strongly believes customers of generic turnkey bots like Gunbot are just cannibalizing each other for extremely low margins.

I also think most people running bots like that don't even know how to trade, and that's the biggest pitfall. You need to constantly tweak your parameters in reaction to the market trend and volatility to be a successful bot trader. That requires an intimate understanding of markets and technical analysis.

In other words, I believe you need to be a successful trader before you can be a successful bot trader. There are no bots where you can press a button and print money. That's just not how it works.

Employing neural networks sounds interesting, but the level of complexity involved makes my brain hurt.

[djgtr]

This is a good recommendation, especially for those who still do not really understand about analysis techniques,
and no exception for anyone who feels like having it. It doesn’t harm to collect guidebooks like this. Although
actually on the internet also we can get this kind of knowledge. In fact, I have also found threads that discuss
technical analysis in this forum. But everything is going to be very good and be skilled when we practice it a lot on the field.
Because experience is the best teacher. For that one must dare to enter the trading exchange. But by the way,
how much price for a book like this?

If there's a book for this, maybe I'll only buy it in times of difficulties encountered during hardships of trading. That probably help me with several things related to cryptocurrency and other business guidance. Development of yourself must start within your experience, so don't stop on just one failure bur rather make it as an inspiration to push forward in order to be successful. You can't do it all alone, we need to listen to different people who had also a good insights, that could give further analysis in order attain perfect conclusions.

[hatshepsut93]

I know a couple people who program their own bots. For pure price action traders, that route is way easier because the logic is so easy. Mostly just stop buys, stop sells and take profits, based on pivot or candlestick breakouts or failures.

A friend once advised me never to run a bot unless you program it yourself. He strongly believes customers of generic turnkey bots like Gunbot are just cannibalizing each other for extremely low margins.

I also think most people running bots like that don't even know how to trade, and that's the biggest pitfall. You need to constantly tweak your parameters in reaction to the market trend and volatility to be a successful bot trader. That requires an intimate understanding of markets and technical analysis.

In other words, I believe you need to be a successful trader before you can be a successful bot trader. There are no bots where you can press a button and print money. That's just not how it works.

Employing neural networks sounds interesting, but the level of complexity involved makes my brain hurt.

Well, the point of neural network is that it doesn't know anything about the details of what it processes, so the programmer doesn't need to know anything about it either. But making a neural network is indeed challenging, I tried it myself in other fields and got no results, and it takes a lot of studying, and some good math background also helps.

[Poker Player]

I stop reading books after I finished to study the basic of trading such as using of Indicators and reading patterns. This tons of knowledge in trading is useless if you don't a good strategy no matter how many books you read. The more you read, the more complicated your trading it will get especially when you apply it in crypto trading.

It's hard to apply the traditional trading principle to a market that can be easily manipulated by news and hype.

That's why I just invest long term.

I follow traders out of curiosity and entertainment, but no matter how complicated their analysis, or their candlestick charts, fail constantly.

I am sure that many of the most famous ones earn more selling books and courses than they do from trading.

[Hamphser]

I stop reading books after I finished to study the basic of trading such as using of Indicators and reading patterns. This tons of knowledge in trading is useless if you don't a good strategy no matter how many books you read. The more you read, the more complicated your trading it will get especially when you apply it in crypto trading.

It's hard to apply the traditional trading principle to a market that can be easily manipulated by news and hype.

That's why I just invest long term.

I follow traders out of curiosity and entertainment, but no matter how complicated their analysis, or their candlestick charts, fail constantly.

I am sure that many of the most famous ones earn more selling books and courses than they do from trading.

You are particularly pertaining to those ebook sellers or mentors in forex and stocks where they do offer out those services and trying to claim that they were profitable
but in real talks they are still struggling on dealing with the market.People should really be attentive and be careful on joining these things in the first place.
This had been always the case were technicals arent always precise from time to time but studying this and trying to familiarize would really be a great
help into your trading career.It is much better if you do have something like this rather than on doing nothing at all.

[exstasie]

That's why I just invest long term.

I follow traders out of curiosity and entertainment, but no matter how complicated their analysis, or their candlestick charts, fail constantly.

They should fail constantly. Good traders have win rates in the 60% range. With proper risk management, a win rate of 40% or 50% can be profitable.

Laymen, as well as lots of misguided traders, have a misconception that markets can be predicted. That if you see a pattern and trade it, it guarantees a result you can profit from. Unfortunately, that's not how markets work. There are no guarantees, only probabilities and estimated guesses. The key to trading profitably is to manage risk so that losses are small (by using stop losses) and wins are large. When you're taking at least 3 units of reward for every 1 unit of risk and you have a positive win rate, you have the capacity to make a lot of money trading.

And that's what you don't see when a trader posts a chart that fails. A good trader will quickly stop loss and move onto the next trade setup. Rinse and repeat.

Most people don't realize that trading is really all about remaining rigorous and unemotional in spite of the fact that you're constantly losing trades. It's all about long term performance.