Hi all,
I saw recently in crypto market and also some posting as sharing from experienced crypto space here, as I understood that there are something to be a reference specially for who are new even with this crypto space.
I just want to share specially for newbie in trading or investment, it is opened also to add or to revise this posting if necessary.
I myself is not an old person who know a lot in this kind currency but lately I see a comparative thing between crypto space with some other trading stuff such as stock exchange, futures exchange or forex exchange. There are a similar things among them :
1. Can be used as investment specially between crypto and stock exchange
2. Can be used as trading stuff specially between crypto and forex exchange.
Other different things are :
1. Crypto can be a good investment started from really a birth of a currencies
2. Crypto can be a good stuff for trading as there are big volatility of crypto currencies
To use above whether to investment or trading, it is depending on the purpose. In simply word, if you want to invest just think long term and if want to trade it can be in short term. I think there is none better between two aforesaid just depend on your purpose.
For all two purpose, it is better if we have a guidance how to invest and how to trade. Investing, I think many of member here know and it talked in other topic. Now I just share the guide to trade.
Trading in crypto has similarity with trading for other stuff just the different is in high volatility as said above. You need to prepare at least below :
1. Psychology / Emotion
2. Analysis
Emotion is required to avoid from panic situation or to avoid greedy behavior, these will cause you to gain not optimum profit even with LOSS. Discipline is required in this emotion field as there are rule to be developed by our-self and to be obeyed with NO EXCEPTION!!
While Analysis is important to be our reference, this is the different thing between gambling and trading. There are 2 basic analysis in trading :
1. Fundamental analysis
2. Technical Analysis
Fundamental analysis is an analysis based on news related with the currencies we are traded of. We should know the impact of a news to the currency whether it is positive or negative. Positive news such as there is news to support from several countries to currency then the currency value will be increased. Negative news such as ban from some countries to currencies therefore many people sell them to cause the value decreasing. If in foreign exchange (forex), industrial productivity decreased will lead to currency of that country to be decreased. Same also with economic growth is lower that previous month or lower than prediction then the currency will decrease.
While Technical Analysis is an analysis to be based on graphical presented including the indicators. Usually the graphical to be analyzed in candle stick and accompanied by indicators. There are many indicators developed by the graphical presented such as Moving Average, Stochastic, Bollinger Band etc. For a new trader, usually introduced Moving Average with some modifications.
For now, I think it is important for new trader to prepare emotion and analysis before open a position in a trading. So there is no more gambling in this industry as you have a preparation and analysis. I want to share more knowledge of trading here but I don't know how to put a picture from screenshot to give some examples specially how to use Technical Analysis with the indicators.
Once again, it is better to prepare yourself with preparation into a battle rather than you go without preparation and some tools or even big gun...!!
See you in other occasion....