Trading is not for everyone, you have to manage your emotions such as stress.
You will have to learn how to trade and accept the fact that you will only be able to envision
possible scenarios based on indicators that will only increase your probabilities of being right
about your trade decisions but you can never be 100% sure what the market will do.
Before you think about the profits you can make, think about your Risk Management.
Market forecasts are only based on probabilities.
Maybe you should be an investor rather than a trader. Trading involves risks.
I do not give investment advice. My goal is to help newcomers to take their first steps
in the crypto world. But the choice to take this first step or not is up to you.
Trading : tips for Newcomers.
Determine whether the long term trend is bullish or bearish.
Even if the trend is bullish or bearish in the long term, there will always be downward
or upward corrections and consolidations in the short and medium term.
In this latest screenshot, since Bitcoin found its last ATH (All Time High), it is consolidating in a massive range : 30,000 - 42,000 $. The 40,000 - 42,000 $ area is the last resistance before
returning to Price Discovery and the 30,000 $ area is the first direct support from its current price.
Of course, we can consider other resistance zones around 34,000 and 38,000 Dollars.
But if Bitcoin breaks the $ 30,000 support, there is a chance it will fall back into the next support
area at 26,500 $. These areas of resistance and support are fairly straightforward to find and
can give buying targets. And there are other metrics like ichimoku kinko hyo, Fibonacci, Volume, MACD, open interest, Moving Averages and more to consider. If you want to trade with Binance,
I advise you to consider the moving averages (MA) in monthly, weekly, daily, 4h, 1h.
This is just an introduction to help you take your first steps in trading. You will have to
dig deeper into the subject and even learn from your mistakes.
As a first step, you can already familiarize yourself with the RSI (Relative Strength Index)
and moving averages. You can also observe the market behavior.
On these 2 screenshots, we have BAT against dollars and BAT against Bitcoin
(Pair : BAT/USD and BAT/BTC) in the same period of time.
BAT lost a lot of value against BTC because BTC gained a lot of value against Dollars.
This is an element that must be taken into account in the long term.
In general (but not always the case) :
When Bitcoin makes significant bullish or bearish movements ; the price of altcoins
will usually suffer initially (whether against the dollar or against BTC).
This is why we take into account the BTC dominance .
We talk about Altcoins season when bitcoin consolidates and altcoins outperform bitcoin.
Before you trade, you need to determine how much you are going to invest in this trade and whether it is a short, medium or long term trade. Do not forget Risk Management.
Always remember that as long as you haven't closed your trade or sold (spot trading),
you haven't made a profit ! Whether this profit is in Dollars or BTC.
Sometimes, it is better to settle for a small profit than to eat a loss especially
on short or even very short term trades.
I mainly do spot trading (futures, leverage, I will see later).
For example, I have an amount of 0.1 BTC to trade on binance, when I buy bat with my btc ;
the goal is to make a profit in btc and if i decide my trade will be short term, I buy 400 or 600 bat.
I follow the evolution of my trade and if i see a profit that suits me, i resell and take my profits.
Even if after that it continues to rise, it does not matter !
Opportunities, there will be plenty more !
Even 5,000 or 10,000 satoshis is a profit (done in minutes).
If you miss an opportunity, don't try to chase the market price.
The worst that can happen to you is to put everything in a trade and lose...
It's like going all-in to the casino or arcade games when you lose :
PLEASE INSERT COIN
You must have an investment strategy.
You must have a trading strategy.
You need to have a strategy that suits you