New traders are easy prey for the brokers who gut them with wide spreads, knowing retail traders almost always over trade. Crypto traders have many tools and strategies at their disposal. In both cases, the entry is based on my favorite volume accumulation setup. Just remember, no one ever lost money taking profit. If youre just starting out, trade with only a fraction of what you make per month.
P.S If you would like my Daily Levels so that you can start Earning While You Learn, then check out our Advanced Volume Profile Training Course and Members Forum for more information Click Here to Start Learning Now Happy trading, -Dale. These placements are typically 10 below your buy order. Click to enlarge Pro youll never get stopped out by a whale right before a rally and can end up taking advantage of those massive rallies after a quick, but major dip. A place like this is usually pretty significant and it marks a strong support zone. Next, lets cover a the most important part of your trade, take profit targets Taking Profit While Its Still on the Table Many novice traders place too much emphasis on their entry points and not enough on their exits. Once youve got a good grasp on how the markets works and a fundamental understanding of technical analysis, indicators, and chart patterns, youre ready to take the next step with real money. Many of these lessons Ive learned the hard way. Trading journals are only how to do swing trading cryptocurrency as good as whats written in them. This is compounded by the wider spreads that brokers offer for those type of instruments. Im sure most of us can agree that we can wait for the next stop. Start off with low trading amounts in order to get used to the psychological factors that come with trading with money.
This also includes more inclusive news like cryptocurrency airdrops, contests, new exchange listings, technology upgrades, and more. . Sure you may get lucky on a trade or two, but this is more of an anomaly than the norm. Not only for the fact it can leave you broke and depressed (thats a good enough reason than any but for the simple fact that it will make you emotionally unstable for trading. Check out my guide: Ultimate 2018 Cryptocurrency Beginners Trading Guide for Bitcoin Altcoin Investing for all the insight you need to get your feet wet with basic crypto investing strategies. This will also avoid you scaling into a losing trade. To be successful, you need an analytical brain and a strong stomach for risk. Swing trading also allows you to live a life thats not always behind the computer. Alternatively, you could set your targets to take 50 at 7464 and 50 at 7542 where a few previous wicks have touched. Your final take profit target may not always be reached, so its good to take a little profit while the bulls are in session. There are many advantages of swing trading and if done well, it can generate a significant profit for your trading account. The Fundamentals of Swing Trading, swing traders hang on to a trading instrument for as long as it takes to realize gains. Chasing losses is where a trader experiences more loss by trying to make it up and taking on high risk trades. Bear that in mind.
Never chase your losses either. Here is a quick reference to some of the guides located on CryptoCoinJunky. This could mean the difference between taking on a 30 loss. I do not recommend placing a trade without a stop loss, unless youre willing to wait a few days, weeks or even months in order to break even on the trade. Do yourself a favor and follow this guide to the best of your ability. The good news is that you can trade with the same volume-based trade setups that I showed you. The sweet spot for trading altcoins is during the consolidation phases of Bitcoin or when it steadily increases how to do swing trading cryptocurrency in price over time. Considering the volatility of crypto trading, Ive personally found much more success swing trading, than day. Enough about that, lets move forward with what you came here to learn, starting with the fundamentals. Trading with fear is one of the worst emotions you can carry with you. This is the nature of being human. However it takes real grit and discipline to keep those profits and not go all in with one or two bad trades. Take siege over the crypto market and storm those golden palace walls in order to claim the riches that are rightfully yours!
Its how you deal with those losses that matters. Are you the type of person to look for steady, more conservative profits, protecting yourself from big risks over time? Ive constructed thorough guides for each of these aspects of trading on our trading page located here. On the other hand, if Bitcoin prices dump, altcoin prices will also follow suit and dump. In order to capitalize on those 30-60 swings, you need to pick coins that showcase a lot of volatility. Lets first take a look at the conservative approach. I know it may sound weird to do cryptocurrency analysis with volume profile but in fact, I dont really see a better way. It has very consistent reactions to volume-based support/resistance zones, and it is a good place to start. Some traders speculate on the newest altcoins, on the basis that these often spike in value as they enter the mainstream consciousness. Its impossible to make accurate predictions 100 of the time. Instruments that go sideways many days, then jump suddenly and then go sideways again really arent ideal for trading.
Today, that bitcoin would be worth approximately 6,200. This would be a sign of confluence in which price will most likely drop. Trading into fomo is a combination of being too greedy and investing blindly. Setting a proper take profit target is one of the most important aspects of trading, so dont take this section lightly. At this stage, its all about improving your skills and knowledge before investing large amounts of capital. It all comes down to herd mentality.
You can see that the price made a sharp and aggressive reversal around 09:00 (the pinbar). Whilst cryptocurrencies are slowly gaining mainstream acceptance, prices can see-saw up and down with frightening regularity. ShuffleUp Volatility Tracker TradingView Crypto Screener. After you feel comfortable with that, you can move on to trading other cryptocurrencies. Swing Trading Strategies, if you are new to swing trading, it is helpful to understand the principles behind the Exponential Moving Average (EMA).
The Best Cryptocurrencies To Trade Usually, it is not very easy to choose which trading instruments you will follow and trade (unfortunately you cant trade them all). PSA: never use money from your home equity, credit cards, or from some bookie you just met at your local bar. One picture is worth a thousand words, right? If you are new to cryptocurrencies and you would like to do Intraday trading or Swing trading with cryptos, then start with Bitcoin. Major news sites like cnbc and Yahoo Finance have daily reports and news updates. Some coins are a lot more volatile than others. Individuals can make unexpected decisions once isolated, however when placed in a group setting, predictability becomes imminent. I highly recommend you read up on all the aspects of trading youre not familiar with before going at it with your own money. For example, you might spot an upward trend in bitcoin but because its early days, now is not the right time to open a position. This signal occurs when there are several technical indicators that line up and give you the same trading signals towards one direction of a trend. Example: Bitcoin is dipping and close to a bottom of a major support along with it showing oversold on the RSI and Stochastic indicators. . Click to enlarge As you can see, there is no right or wrong stop loss placement strategy.
Accept your losses, take it as a learning experience, reflect on your mistakes, and start a new trade (preferably the next day or after a break) with a fresh pair of eyes. The feeling you get with taking profits along the way will ensure a better mindset for future trades. For a more detailed analysis of hard and mental stop losses check out our guide: Cryptocurrency Trading: Stop Losses VS Mental Stop Losses Now there are two types of strategies behind stop loss placement. Take what you can get on the following rally. Once youre comfortable analyzing charts, move over to paper trading on the TradingView platform. Technical Analysis and Why It Works. Be thorough and honest. This is probably one of the toughest pillars to master. Trading is always a risky business, but the volatility of cryptocurrencies makes it one of the riskiest markets to trade. The reason brokers often have wider spreads for those instruments is that cryptocurrencies can be extremely volatile and can produce massive and often unexpected moves.