Topic: Tip for making profit in trading for beginners (Read 235 times)

I have been in the trade for several years and I will reveal a little secrets to you. You need to read more books on trade - this is the first rule. And the second rule, before starting the trading session, decide what result you want to achieve. 5 deals per day in half an hour or 3 profitable deals you want to make. In general, you need to decide on a specific amount or time to trade. DO NOT trade all day, it's a DISASTER.
So you lose and will make a lot of mistakes.

There are the people who believe that trading and investing through pump and dump strategies might work but I personally believe that it is not morally sound way to trade in that way and it never helps the coin in any way when it comes to the healthy development. There is also a risk while entering the market at the levels based on the random tips. The best way is to invest based on the strategies developed through the analysis & research of the market.

Don't be FOMO.
For professional traders, they don't believe or act like buying from dip and selling from high.
Sometimes waiting for some time while it's pumping can save you from loss.

"Hold at whatever you're buying" ? Please do so with the vast amount of scammy projects that are out there. In times like this, when people are frenzy about projects they don't even read the whitepaper, is the time to flip, not hold.

And you mostly missed the whole point of this thread, which is about giving tips for making profit in trading.

his is some good advice.  Trading is not easy; many fail at it over the long term (if not the short term).  Bitcoin has kind of become like the crypto equivalent of broad stock market indices in the sense that you will probably make a decent profit by buying and holding longer term.  Trading is only worth it if you can beat the return that bitcoin will give you.

If you really are set on learning to trade, then I advise the following:

1. Do some basic investing (e.g., buy some bitcoin on some pullbacks) so you can try to earn some money while you learn how to trade.
2. Recognize that learning to trade will take a lot of time and hard work, and will take years to learn to do well.  If you don't enjoy staring at charts for hours, stop here.  Trading is not for you.
3. Don't quit your day job (see #2).
4. Start by taking some time to learn the basics of what trading is and how to do it.  Youtube has a lot of good material.
5. After learning how to trade, learn more about technical analysis and spend time developing a trading plan that fits your personality.
6. Backtest and forward test your plan, either on paper or with very small trade sizes.  Optimize your plan.
7. When you think you have a sound trading system, trade small amounts first and increase your trade size slowly as you gain confidence.  Learn to control your emotions.
8. Profit.

Do: Hold at whatever you're buying
Don't: Trade

Explanation: Everyone is losing money by trading because no one can predict the outcome of the market (short term outcome). But we can all be fairly sure that the cryptomarket will evolve within the next years and it's value will multiply by a lot. Considering that, it makes no sense to trade "catching waves" to make short-term profits, if you can simply buy any of these coins and hold, and make just as good of a return as you would by trying to trade. Just consider doing something else, having a job for example will most likely provide you with a better income than trading (even though trading is a job as well, leave it to the experienced one's) if you really do want to get invovled in it, just put a very small amount of your portfolio into trading, maybe 10% and trade with that. Something you can afford to lose.

Since this post is about trading tips, here's a few that will save noobies a lot of money.

• Risk 1% of your total capital or less - Harder to make tons of money when you have a small capital. Risking only 1% you'll make money way slower, but making a bit of money is always better than making huge donations to broker.
  
• Don't overtrade. You'll likely need to take only a few trades occasionally to hit a minimum target of 5-10% capital gain per month, which if you compound your interest, your outcome will be huge after 3-4 years. You don't have to always be in a position just for the sake of making or losing. Only trade in under certain circumstances you decide to use (after you backtested those requirements, of course!).
• You'll often hear "don't use your own money, begin paper trading" which is a bad advice since you won't have any skin in the game by doing so, and most important skills in trading are psychology-related skills. Whenever you trade, your emotions get triggered by the amount of money you risk when trading and they are influenced by your financial background. Are you poor and trade with your life savings? You'll definitely get attached to your sum of money and get distracted by your own emotions if you risk more than you're willing to lose, stick to my first rule to dodge this psychological barrier.

Here's an example of trade with a Risk/Reward of 1.9

https://imgur.com/a/IQlDaF9

Let's say your total capital is $100.000

The risk this swing trade has is 18.86%

So the amount of capital that must be used to only risk 1% of total capital in case the trade is lost should be 1/18.86 * total capital, which is 5.3% of $100.000 => You only use $5300. If this trade goes wrong, you only lose $1000 (1% of $100.000). But if it's a successful trade, you'll win 1.9 * 1000 = $1900. Basically, you risk $1000 to make $1900.

The only tip for making profits as a beginner is: Dont trade with real money, stick to paper trades until you feel confident enough to understand the market you are going to trade in. Rushing into a market without knowing exactly what you do will cost you a lot of money ...

Yap, I know, It is SO-CALLED. I know that is not a deadcat bounce. but, for beginners, It can be seen as like that.

Exactly, this trade method is like 'Method with Moving Average' + Pumping

A "dead cat bounce" is a rise in the share price of a worthless stock, and it is caused by profit taking by bears. It is not a part of the trading in an asset with value.

Why these are some decent tips on trading, these aren't ways to earn "easy" profit, as I'm pretty sure there isn't such a thing as "easy profit" in trading. Naming your topic title as such is just going to give the newbies false hopes into thinking that trading is easy.

There are so many ways to trade in the world.

However, most people buy when they climb and sell when they fall.
People like to go up sharply (so-called pumping).
Throughout the week, Ripple and Bitcoin Cash have risen sharply.

If so, I am going to tell you how to eat pumped without doing a big study.

1. When I saw the pumping, it was already late.
You can not be watching the charts 24 hours a day. But you can listen to the rising news through telegram or other methods.
Then you can see that you are already falling, after seeing the chart. You can not be disappointed here.


2. The sudden rise does not happen once.
A so-called "Dead-cat Bounce" occurs when a sudden rise accompanies a sharp decline.

When does this 'Dead-cat Bounce' happen? It happens when 'Moving Average' and Candle meet.

You can see the following picture (Bitcoih Cash / KRW)



The first figure is '1minute graph'. After the first sharp rise, you can see that it rises again in the red square.



The second figure is '5minute graph'. You can also see a sudden rise from the second square.



The third figure is '1hour graph'. After the first ascent, you can see that the red square part rises again.

-------------------------------

Do not be sorry that you missed the first rise. Obviously, after the first ascent, there will be a second ascent.

P.S: I can not find a board for trading altcoin, So i post it on 'Beginner & help' forum. If any problem, plz let me know