Friends, I welcome you, I'm very glad that the previous article was useful for many https://bitcointalksearch.org/topic/m.29236037, so I decide to write a little more about trading and investments.
Trading for a beginner is a dangerous thing, so everyone should decide for themselves: not to be a beginner, or not to be a trader. Why is that?
Here are a few facts:
1. Cryptocurrency market is highly volatile, the rates change constantly and it is almost impossible to predict the price movement up or down.
2. Cryptocurrency market is practically not subject to fundamental analysis. Basically, this is a market relationships, or the manipulation of the market by large players.
3. Cryptocurrency market does not have a transparent information background, no one can be 100% sure of it. Very often it happens: there seems to be believable news, but in fact it was just a market manipulation, for someone's re-purchasing or information was just incorrect.
If the newcomer wants to succeed in trading, he should study in detail 6 tools for analysis:
1. Basics of technical analysis
2. Computer analysis
3. Use of tools for trading
4. Basics of fundamental analysis and analysis of market movements in the past.
5. News
6. Cryptocurrency technologies (whether there is in general a sense in this or that technology, whether it is useful to a society, whether carries something new or it is the next fork of what that of coins).
To become a professional trader you will have to learn a lot, practice a lot, plunge deeply into the market, conduct a certain number of transactions, survive ups and downs, as well as incur certain losses.
It is this approach will allow eventually succeed and become a successful trader. Learning and knowing a certain tool shifts the scale in your favor: if initially your chances of predicting price movement are estimated at 50/50, many mistakenly think that knowing all the subtleties of trading their chances will approach 90/10, unfortunately this is not so.
Good indicators are 55/45, at best they will be 65/35, because one transaction is not indicative, it will be necessary to open many transactions and only at the distance in the theory of large numbers the results will approach the mathematical expectation. You will start to guess more often and less often make mistakes, this is the best way to succeed in trading on the crypto exchange market and this is no longer the path of a beginner. You will have to cease to be a beginner and become a professional. Or you can choose another way – not to be a trader. Do not try to predict the movement of a course, but simply buy something that has fundamental reasons for growth, buy something that is inextricably linked with cryptoeconomics. It is known, it grows, grows very violently for a long time, even when local corrections occur, even when markets or individual market sectors collapse locally. Thus, changing the approach to a more fundamental one: portfolio or index, you very often can get rid of those problems that are in trading.
Historically, in a variety of markets: foreign exchange, commodities, securities markets and other proven -traders tend not to overtake the market itself. So, for example, if you invested in all American stocks by not a lot, you would get a better result than you looked for the asset that you want to invest in now, anticipating its price movement in the short/medium term.
Nevertheless, many people try their luck in trading, because it is precisely in times when the cryptocurrency itself does not give such a rapid growth and trading comes to the fore as a market neutral strategy, a strategy that can bring you profit, even when the whole market is in the flat or in the red. After all, trading allows you to earn on the fall and stagnation of the market, not just on its growth.
So I decide to sort out all 6 tools a little, so that the beginner had the opportunity to combine trading with investment.
Many newbies I’ve known so far doesn’t even take their time to study all these things. All they do is ask how it works, and when they are given brief information, they will just take it like that without digging into the topic and knowing more about it. Trading is not easy but many people don’t know that. Trading for a beginner is a dangerous thing, so everyone should decide for themselves: not to be a beginner, or not to be a trader. Why is that?
Here are a few facts:
1. Cryptocurrency market is highly volatile, the rates change constantly and it is almost impossible to predict the price movement up or down.
2. Cryptocurrency market is practically not subject to fundamental analysis. Basically, this is a market relationships, or the manipulation of the market by large players.
3. Cryptocurrency market does not have a transparent information background, no one can be 100% sure of it. Very often it happens: there seems to be believable news, but in fact it was just a market manipulation, for someone's re-purchasing or information was just incorrect.
If the newcomer wants to succeed in trading, he should study in detail 6 tools for analysis:
1. Basics of technical analysis
2. Computer analysis
3. Use of tools for trading
4. Basics of fundamental analysis and analysis of market movements in the past.
5. News
6. Cryptocurrency technologies (whether there is in general a sense in this or that technology, whether it is useful to a society, whether carries something new or it is the next fork of what that of coins).
To become a professional trader you will have to learn a lot, practice a lot, plunge deeply into the market, conduct a certain number of transactions, survive ups and downs, as well as incur certain losses.
It is this approach will allow eventually succeed and become a successful trader. Learning and knowing a certain tool shifts the scale in your favor: if initially your chances of predicting price movement are estimated at 50/50, many mistakenly think that knowing all the subtleties of trading their chances will approach 90/10, unfortunately this is not so.
Good indicators are 55/45, at best they will be 65/35, because one transaction is not indicative, it will be necessary to open many transactions and only at the distance in the theory of large numbers the results will approach the mathematical expectation. You will start to guess more often and less often make mistakes, this is the best way to succeed in trading on the crypto exchange market and this is no longer the path of a beginner. You will have to cease to be a beginner and become a professional. Or you can choose another way – not to be a trader. Do not try to predict the movement of a course, but simply buy something that has fundamental reasons for growth, buy something that is inextricably linked with cryptoeconomics. It is known, it grows, grows very violently for a long time, even when local corrections occur, even when markets or individual market sectors collapse locally. Thus, changing the approach to a more fundamental one: portfolio or index, you very often can get rid of those problems that are in trading.
Historically, in a variety of markets: foreign exchange, commodities, securities markets and other proven -traders tend not to overtake the market itself. So, for example, if you invested in all American stocks by not a lot, you would get a better result than you looked for the asset that you want to invest in now, anticipating its price movement in the short/medium term.
Nevertheless, many people try their luck in trading, because it is precisely in times when the cryptocurrency itself does not give such a rapid growth and trading comes to the fore as a market neutral strategy, a strategy that can bring you profit, even when the whole market is in the flat or in the red. After all, trading allows you to earn on the fall and stagnation of the market, not just on its growth.
So I decide to sort out all 6 tools a little, so that the beginner had the opportunity to combine trading with investment.
