Topic: Three basic Market Analysis to Becoming a Successful trader for Newbies (Read 309 times)

These are not "basic" market analysis, you think people are doing this for basic analysis? This is actually quite advanced compared to what people are doing nowadays. There is literally copy trading where you leave all of your portfolios fate into other people and they are doing all of that improvements for you instead, that is what the trading world came to in the last year. You can't tell people who do not even touch their own money and let others deal with the trading of their portfolio to do these and call them "basic", of course they are not.

However, you can call this "bare minimum what you should learn before becoming a trader" and that would be true, because without these you are not really trading but just guessing what is going to happen and acting on it.

I always keep my eye on doing technical analysis in the market every time I plan to do transactions.

But those other type of market analysis are important for you to have a guide in making strategies before you engage in the market.

That will help you trade in a good situation and this strategy will help you determine a good time to do trading. When you want to become updated in the price of your asset, don't forget to do technical analysis for you to have a lot of ideas on what strategy you are going to perform in your trading. Predicting the future price is risky but still you will have some point of views based on the market.

Probably the ones we should be using right now base on what the crypto enthusiast right now are up to. DEFI investments are rocketing up and if sentiments are what we look for, I guess Defi projects are the ones we should be buying.

In my opinion, just two basic market analyzes can make a newbie become successful trader. Just learned Fundamental analysis and
Technical analysis it is sufficient for the newbie to trade well and can make a profit. No need to learn sentimental analysis for become
a successful trader, if too many things learned by newbie later it can be confused. Moreover sentimental analysis is not commonly known
by many people, so in my opinion it doesn't need to be learned from the beginning.

A trader does not need to follow all the analyzes in order to make profit because just following only one itself more than enough when you are good with that. There is no mandatory requirement for going for both technical and fundamental analyzes because most of the times we cannot combine them for any given time frame as technical analysis is known for giving you signals for short term whereas fundamental analysis is always focused on long-term trends.

That is the final requirement what we need at the end of the day; you can derive whatever analysis which is comfortable for you but that should be in a way supporting you to crack profits at all types of market conditions. People combine non-tested methods which may work only for certain market conditions and might fail at most other situations. This is the reason why we should go for proper technical way so that we would stand against all market fluctuations.

All of the 3 types of analysis are working as long ad you have set of rules and criteria when trading a certain cryptocurrency. I'm a technician so basically I only rely on price action, what is the reason why I do not use fundamental and sentimental analysis? Because it is not working for me. Maybe some traders are using it because it is fit to who they are but for me it is not working and I purely rely on technicals. Do I make profit?  Of course yes, and it is the reason why I only using technical analysis. It is not bad to use the 3 just make sure it will with your characteristics and your own emotion.

I believe a newbie had to study and research on either becoming a trader based on technical or fundamental analysis combining those analysis at a go might spell doom and become complicated and complex to achieve.
Some forex traders are more knowledgeable in trading fundamentals whenever there is an impact news related to the currency pair to be traded that is when they trade based on increase in the momentum and volatility of the said pair, while some are more of technically based traders who relies on Price action using various charting analysis in aiding their trading decisions while paying attention to any fundamental news that may rubbish or jeopardize their analysis which might result into a massive losses.
Technical analysis is very important for any newbie in making profits consistently although it requires a researching by reading many trading journals, pdfs and watching many videos.

Fundamental and Technical analysis are naturally needed, they are basically the foundation of your knowledge, of how you would trade, how you would judge and move. They're basically the pillars of your house. As for sentimental analysis, I agree with controlling emotion but mood? You don't necessarily need to even copy the mood, or how they get into the mood, you have your own way of trading and studying other traders' moods doesn't really seem that useful. Sentimental analysis should concentrate more on yourself rather than others, on controlling your emotion.

They actually both mean the same thing, the usage just depends on how you actually construct the sentence. Although I don't understand how OP described sentimental analysis, since the word means something similar to feeling emotions of negativity like sadness, and analyzing other traders doesn't really invoke such emotions.

You don't mean sentimental, you mean sentiment. The real problem actually with trading and traders is that people get so sentimental about their losses;)

Anyway, I never believed in any of the three except sentiment. I've seen traders do up all the charts all day long, only to act on emotion because of what they read on Twitter etc.

THAT is sentiment;)

Actually for a newbie it will be a hard task to analyze all of them and execute their trades, so first every new trader should learn about fundamental analysis because which is more effective than technical analysis.Fundamental analysis based on the recent news and upcoming events related to cryptos will be really helpful to trade coins like bitcoin so just go with it until you know how to make analysis from every perspective.

Yes i also think sentimental analysis should be given highest importance because even if you can make fundamental and technical analysis successfully, you won't end up trading profitable if you cannot control your emotions which will really help in your decision making. These three things should still be considered once you're in trading.

I think the last line which you said carries the most importance in life of any trader. The most important thing always is controlling Emotion, fear and psychology. Moreover problem with this thing is that no matter how much theory you read about it you would just never be able to control your emotions in the real arena. Which makes it much difficult to implement. I would also add a word discipline here as that also is pretty important.
It's nothing but guess work. I have seen this in traditional markets. People go buying for those stocks in which the Hedge funds or FIIs recently invested but what they don't realize is the price differential on which those people invested and on which you are going to invest. Moreover there might be absolutely different horizons of investment that fund might be looking for. Studying whales is done using two methods one is reading volumes in the market and interpreting it with price but that can easily be classified under technical analysis itself.

Yes and a lot of fake news are spread at times which can virtually give a feel to traders like something is going to happen either to hype them for bulk purchases or for them to dump by creating fear among their minds.

But that said, I think anyone who has the ability to analyse market technically would never fall for such traps since knowing the technical part you would always have a technical reason why you made a particular trade at a particular time.

I see so many threads down this section but this Sentimental analysis is something new and quite useful for newbie traders because new traders are usually emotions driven.

This is an important factor actually because a lot of guys make trades based on emotions and I was one of the emotional trader a few years back who would get hyped by the price leaps and buy bitcoins only to realize that I have been a victim of FOMO and now I need to understand that I either store the BTC for long time to get profit or I just sell now and adjust myself with small losses.

Anyone can do technical analysis with some study and basic knowledge but having the ability to know yourself and your emotions is hard and requires you to understand yourself better than you understand the market and the charts out there.

Combining these analysis along with money management principles will ensure success in trading. Most people do focus on all types of analysis but do fail at emotion control and money management principles which makes their hard work on market analysis a complete void at the end of the day.

Highly agree on this but actually its really hard to learn on each key area and it would takes time and lots of experiences before you do mold up yourself to be better into this field.

Fundamentals do target out with news and technicals are for indicators and the last will really be talking about emotion which i can say that this should be on most priority most of the time

because no matter how good your funda and TA if your emotions arent really that well then it will just destroy your reasoning and decision making aspects.

Social media and other digital media will be very influential in managing the next scenario. The whale can't be easily guessed. Sentimental, fundamental and technical analysis are interrelated. if all three of these combinations can be learned correctly, then you will know where the next market is going.

technical analysis is important, but it must be balanced with fundamental and sentimental. Technical analysis is also quite difficult to learn, because we are required to read every candle movement using various indicators that are already available. every change in the price of a coin can be known by technical analysis.

Those pointers can't just learn overnight. We are talking about "newbie trader" here.

Let them deal with the challenge of doing trades with only basic knowledge as a foundation. Mistakes will make them a better trader in the future if they are serious about pushing their trading career.

They won't understand those 3 pointers even how serious they are as they lack experience. When they learn those pointers above, they are not a newbie trader anymore.

I don't know if sentiment is to be classified as an analytical strategy for analysing the market. It should be under fundamental because if separated, it still under news which is a reaction whether positive or negative that pushes market anyway. Surely sentiment is power in market direction and it creates a lot of suspension, fear and fud.

Sentimental analysis? Is this a colloquial name of trend riding? Because your explanation for sentimental analysis sounds like it is not based on technical things but we need to make decisions based on how whales are trading which means even technical analysis says something different, we must need to take decisions what big traders are doing; in some sense it is already what I'm doing but I am referring it in the name of a riding on trend.

Market analysis is something which is primarily focusing on what would the next direction whether it will be the continuation of what we are currently having or the reversal? If you think in depth all the analysis are dealing against this regardless whatever names nor whatever criteria we are making use of. I am kind of doing partial fundamental and partial technical analysis as the combined parameters I am making use to predict the market is not letting me to say like I a technical analyst or fundamental analyst to generate my own trading signals.

Basically,sentimental analysis is a part of fundamental analysis,so there's no need distinguish them.
How can you study "investors,whales and market manipulators" since most of them are hiding in the shadows and keeping their moves as a secret? Do you have some secret insider information about some crypto whales,OP?
Learning technical and fundamental analysis might help you,but this is just theory and theory is nothing without practice.You can still fail at crypto trading,even if you mastered technical and fundamental analysis.

Fundamental and Technical analysis play a vital role in deciding any trade. But at times as rightly mentioned that sentimental analysis is also very important because at times have seen that technical and fundamental is something else and market moves because of the sentiments then it can be some news where people react to it and may even do panic selling thus leading to fall in the market.

I knew a lot of trader who are prioritizing the use of technical analysis in their transactions, so that they know the changes of their asset's price in the market. Timing is what we need in order to become successful in trading, you don't need to rush, but you need to study all of the movements in the market.

But this technical analysis, is most effective for a short-term trading and for a long term investments.

This will also help you to perform signal trading, but be careful of those signals, it should came from those professional traders to prevent being scammed by authentic signals. You need to know the person behind those trading signals so that the technical analysis that you perform will become worth it.

Those are goof points. I usually go with bitcoin and few rare altcoins (usually none) to trade the money. When it comes to the bitcoin, you dont have to study it on much deeper side since all its facts and patterns are already known to us! It fluctuates a lot with tortoise movement but it does it and over the time can boom us with profits.

However while trading with other coins, all these three points as per OP do matter a lot. Sentimental analysis is real enemy for a trader. I mean you must have heard of terms like panic selling, FOMO etc these are all associated with the traders sentiment and if they dont overcome it then they make us loose.

Both other points does apply to real stocks or crypto's since they are the basis of whole exchange platform and drives the prices accordingly.

For me, it is Technical Analysis that matters the most in trading. It will help you keep on the trend and what is happening in the market. Dealing with the market situation before you perform a transaction in trading is what will make you more effective in making strategies.

It also provides you lots of information that will help you gather ideas and serve as a basis for your plans.

That will help you observe the market movement, you will determine the changes in prices of the coins that you are manipulating as an asset.

Technical Analysis is worth learning as it will be a useful thing while you perform in trading every time you perform transactions.

This is how I understand 'sentimental analysis', and apart from it, it is based on users experience. In this case traders, who are either very positive of the outcome of the market price or negative. So basically the emotions of crypto traders.


Both Fundamental and Technical analysis are the one that most traders used to gauge and predict the market movement. But they are not perfect, as the price could literally go on the other side so definitely it has its flaws and weaknesses and not 100% reliable.

I think that anyone can have their criteria of thinking that they can work in certain activities, but for example in relation to trade, you may have minimal knowledge and be making profits without solid theoretical criteria, that does not imply that That particular situation makes him an expert and even less so that his experience becomes a guide to follow.

But the context of our experience exposed correctly can result in the possibility of discussing and analyzing for the benefit of its possible use or at least of having knowledge of its good results.

Consequently, no matter how well your technique or knowledge turns out, one should not toss premises into the situations in which money is involved, not unless one can verify them from a quantitative and not just a qualitative point of view.

As part of sentimental analysis, I can interpret it as emotions that, if it is very logical, because the market, apart from whales, is also driven by emotions. Although it is very difficult to know what emotions they have at a certain moment, except the fundamental ones.

 Fundamental and technical analysis has its weak points, generally when it leans towards one of preference, it tends to fail, it is better to try to understand the market, which includes having knowledge of both analyzes to combine them and make the best decision.

 I'm quite confused with sentimental analysis.  And yeah quite hard to understand and incorporate that in our trades. We tend to analyze and interpret the attitudes of whales and seems it is difficult to read their next actions and their minds. Someone told me that before but ignore it, I do realize social media has a power for us to still know what those big investors may gonna act that will affect the crypto market.
 
 I usually do both fundamental and technical analysis. I learned something today,  with a combination of sentiment analysis, we can trade better than before.

The most complicated and difficult to understand analysis is sentimental analysis. Because sentimental analysis is indeed related to market psychology, studying the minds of investors, whales, market manipulators, etc. Sentimental analysis will inform us whether it is the right time or not. Emotional control is very important, if not using sentimental analysis the trader will be trapped in a dilemma that will be confusing.

These things you have mentioned with regards to fundamental analysis cannot be really considered as FA, why? Because Fundamental Analysis is not about what revolves around the asset but it's really about the internal aspect of the asset particularly the financial performance of it to determine the fair value of an asset, basically what I'm trying to say FA is useless in the crypto market aside from STOs since these cryptocurrencies don't have any income statements, balance sheets, and cashflows where you can do the basic FAs like EPS, DPS, or EV/EBITDA ratios. What you mentions are just speculative plays that can possibly affect the price but it doesn't say that this is really the financial performance of a crypto asset.

I have never heard of this sentimental analysis before in my life. Perhaps it would be better to fall under the umbrella of your 'fundamental analysis' section, since mapping it to a type of news would make some sense. It's kind of like guesswork, though: trying to study whales and predict what trades they're going to make?

Maybe only in smaller market caps, but any time you're trying to speculate, you would probably be better off doing technical analysis and reading over news regarding the market. Sure, we have market manipulation here and there, but trading based on that is one sure-fire way of getting manipulated yourself. If they know you know, can't they change their strategy?

These  are 3 broad market analysis for a newbie trader to have an edge over the market in trading
1. Fundamental analysis
2. Technical analysis
3. Sentimental analysis
Fundamental analysis comprises of Social, Economic and political news which serves as the driving force of all prices they greatly
influenced price volatility and momentum of cryptos, forex, indices, commodities etc.
This analysis influenced most price in a market in crypto markets watch out for crypto Forks, Government clampdown on big exchanges etc
in forex, indices, commodities  Monetary policies, speeches on inflation, unemployment etc influenced prices
Traders are expected to be kept abreast and get updated on any upcoming fundamental news.

Technical analysis utilizes a trading pattern in predicting price movement of a crypto,  indices etc with the aid of charting patterns
this analysis with the aid of indicating tools both leading and lagging indicators help to predict the future price movement based on past historical
calculations, of course price history repeat itself, trend lines, support and resistance lines moving averages are some of the tools in ensuring a trader trade with the trend 'Trend is your friend' in trading coupled with learning Price Action is a must for newbies to earn profits consistently.

Sentimental analysis this analysis helps a trader to study investors, whales, market manipulators etc mind on their decision making mood
Although its quite difficult to understand but some knowledge is a prerequisite to become a successful trader.
Finally controlling emotion, fear psychology are all required for  newbie traders.