Hi, steemit. First post here, just wanted to share my most profitable crypto trading strategy so far. Maybe other newcomers will find it useful as well.
First and most important - identify solid cryptos to trade with and add them to a list. Look for key factors such as marketcap, price volatility, development team background and funding, roadmap, and of course, your general impression and gut feeling.
Use technical analysis to fine tune your entry price for each coin. Place buy orders only for those in obvious accumulation zones (ideally with major news release coming in the near future).
Calculate your take profit percentage (mine is around 30% from the buy price) and place email/sms alerts for it, using coinwink.com or some similar tool. Once the price moves past your value, put a stop loss order at that value. If it continues to rise, cancel and move the stop loss order up by 1%. If price falls, it will hit your latest stop loss order.
Alternatively, if the price rises and you think it's too good not to sell (i.e. major news release just caused a new All Time High), do it instantly if you have the chance. Don't hesitate and don't overthink it, as the price will not stay too much at that level.
Always keep an eye on Bitcoin - USD rate, as this sets the tone for the rest of the crypto markets.
For those just starting out, trading is not that difficult. Just get familiar with basic technical analysis indicators, do your research on each coin and don't trade what you can't afford to lose;)
Thanks for sharing, so would you recommend to look at the dollar charts or the Bitcoin related charts?
It depends on whether you believe BTC will increase in value in the long term and want to accumulate your profits in BTC, or otherewise, in USD. I use BTC charts for day trading. Also, I log into a spreadsheet both USD and BTC price of a certain coin at the moment of a buy , helps me keep track of profits.
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