I'm trading for a last one year in different areas and last 2 months in cryptocurrency. I want to share my experience with newcomers so that they do not lose their investments.
The most working reception is based on Elliott wave trading. If you dont know about this you must learn the basics of this theory. This knowledge will help you see more on the charts.
What is this theory ? Studying the charts, Elliott noticed that prices in the exchange markets develop according to a certain model called pattern. For models identified by Elliott, repetition is typical in form, but not necessarily in time or amplitude. In total, he found 13 similar models (waves), constantly emerging in data on market prices. Elliott called, identified and illustrated these models. Described how, related to each other, they form larger analogues, which in turn form the same models of an even larger size, etc.
It means that charts are formed on the psychology behavior of a large group of people. For example, If we have some trading situation at this moment, we will see a certain price change. This price change is created by people who follow the market. And with a high degree of probability if we can repeat the previous situation on the market,
we will get the same behavior of people. Accordingly the price change will be repeated.
The most common impulse wave consists of 5 small waves: 3 impulse waves and 2 corrective waves. The most common corrective waves consists of 3 small waves: 2 corrective and 1 impulse waves.
I will not explain this theory completely because it is really big. A detailed description with examples you can find on the websites. You will have to study this theory better if you want have stable profit. It's hard but it's worth it.
Here is a website with an approximate description of the waves, but I think you can find something better
http://humbletraders.com/elliott-wave/
Also I would like to tell you how I analyze the fundamental news. I created a separate twitter account for cryptocurrency and subscribed to all coins that interest me, and some news channels. It helps me to stay informed.
For example at may 23rd I saw the tweet that siacoin was added to the Bittrex. And i immediatly buy some coins and wait for price increase. The price rose from 400 to 520 satoshi in a couple of hours, i made +30%
But you do not have to constantly read all tweets. I look there several times a day and watch the most important events. Read them and try to analyze is it important event or not.
Here is a link to my Twitter account, you can look all my subscriptions.
https://twitter.com/cryptobroker20
Another tip for beginners - select pair with dollar. Because if you bought for bitcoin some coin and wait while your coin grows, at the same time bitcoin may lose in price, and you will lose your money too. Be careful please. Dollar is a more stable currency. As it seems to me a safer method for newbie is to trade from the dollar.
All profit that i made i'm trying to invest again. But know i will buy cheapest coins with new original technology that will be needed in future. Because if you made right choice your small and cheap coin can give you a lot more than you spent.
My trading scheme is simple. Make money out of nothing and invest it in the future.
I already bought a few coins with fresh idea that can greatly rise in price in the future: Humaniq, Waves, RouletteToken, FirstBlood, Syscoin, Lisk, Siacoin, Golem, Aragon. You can read about all these projects, really something new.
This list just my choice after some reflection. Do not judge strictly please :)
That's all for now. If my thoughts are useful to someone, I will try to make a second post about cryptocurrencies, charts and indicators. I have a lot of thoughts about that. Thanks for your time!
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nice viewer!Follow