After 15 years in the currencies market, I still think there is no case for technical analysis without human interpretation.
From organizing and running a forex trader group since 2004 and being actively involved in seminars and events on currency trading, I met a lot of people who trade. Most lost money but a few survived and thrived.
Every consistently successful trader I knew was the brains behind their methodology. It was a unique methodology to them. They used various technical analysis tools like strength meters and MACd. None got their system from the internet. They all had a different approach.
These successful people were able to predict the future of a particular currency or commodity for a few minutes using their ability to think for themselves.
The ability to successfully speculate in currencies and coins requires an in-depth understanding of the fundamental factors involved. Paying attention to the economic reports for the day is crucial when trading currencies. A world currency can move wildly if a government report isn't what the market expected. A digital currency doesn't flinch except for its relationship to the FIAT its measured with. As in BTC/USD
In digital speculation, you need to understand the social aspects of digital currencies. Crowd behavior is important, and news items on twitter or Reddit can fluctuate a digital currency like crazy. Digital money is minimal in volume right now compared to the FIAT currencies. I feel that trading digital coins with technical analysis at this stage of growth are almost useless under most conditions.
I feel it can be used to give you clues on what people may do based on what they did in the past, but basing a trading decision solely on technical analysis is going to be as disastrous with cryptos as it has been for forex players. People are not rational.
A digital exchange consists of a few hundred individuals who want to exchange money, coins, or tokens for various reasons. It is a very tiny digital coin marketplace right now. Each exchange has its own players and prices. Mostly, the exchanges in digital consist of regular people like you and I. Some are buying at whatever price the market asks, and others are observing for a great entry price. The digital market is volatile for a multitude of reasons.
Speculators must look into the future. The latest buzz and news in crypto can help you make decisions. There have been dozens of brilliant trading methods involving data collection and overall, the more data you have your hands on, the better. In the end, the successful digital traders are the ones who know how to think on their own.
Upvote and subscribe if you like this type of material, and I will be motivated to continue with movies and tutorials on trading the digital markets successfully.
Yes please do keep on posting about this because I am very interested and would love to learn more. I am a forex trader for 4 years already and I must agree with what you said about traders having their own methodology. I myself use both fundamental and technical and even my indicators are adjusted to suits my own understanding. Keep up! I'll be following you closely to learn more. Thanks ya!
Thanks. I have been moving digital currencies around since bitcoin was a few dollars. Usually the trades were days and weeks, but lately, the digital coin market is heating up and offering lots of shorter term opportunities.
Do you think short term is better? What are the perks and downside of it?
My tradition is to hold, but the markets are getting more action, there are opportunities for making great gains intraday. I have been using whaletrade and poloniex for speculation purposes only by moving the coins in and out of a hardware wallet as needed. Only keep enough on an exchange to make your exchange. Then move it back to safe storage. You can protect yourself from a failure since I have been witness to 4 exchanges going belly up. The latest is btce who one day had my money and the next an FBI warning they were shut down.
I totally agree with you about intraday. The longest I place my position would be about 8-10 hours hahaha That's why I coined the term "short position trader" which seasoned traders usually would scoff at me abusing the term hahaha