Topic: Trading in a nutshell (Read 392 times)

Not to mention if we choose many coins from the market, that will make us busy to analyze to find the time to buy the coin. The description from the @OP is for a simple illustration from trading but he needs to understanding more than that because trading needs to have strategies that will be used based on the different situation. It is easy to make a profit when the market situation increase but we can not see that will always happen because the market can moves to anywhere without we know. With more learning and practices, we will know what strategy that we can use based on the current situation so we will still have more chances to make a profit.

If you make trading very attractive to a newbie by explaining it as simple as this to them, they will be very surprised to find out what they meet when they start trading actually. Trading is no simple business and it requires complex knowledge for you to be able to make profits this is why to actually be profitable in trading you need to have invested a lot of time in it.

I will rather tell a newbie to trading that it requires complex knowledge, so that they know what they are getting into and be well prepared for it mentally before starting.

at least OP has a basic understanding of trading. but may not understand the risks of more complex trading.
because in trading we will not continue to see our targets achieved. As analogized by OP, he mentioned a profit of $ 5 from his successful sales. but I think that is a margin, not a net profit. he did not predict how long all the apples would be sold. how many apples were ultimately unsold and rotten. as well as the operational costs used.
trading will indeed look simple when we understand it simply too. but the problem of profit or loss, we cannot guarantee it. therefore trading requires a strategy, and it must also go through planning. not carelessly just buying cheap and selling high.

Trading is not as simple as you mention. You needs to learn more about trading such as how to determine the right time to enter and quit from the market, how to analyzes the coin you can buy, and other things. There are many things you must do to have high skills in trading and that needs time before you have that skills. If you only use that simple terms, I am afraid that you will difficult to make a profit because in trading, the market can stay at low price for some time and that will makes you boring to wait for the price increase. Besides of learning about trading, you should learning how to improve yourself because that will related to how to control your emotion and other things.

They actually confirm their belief that it is tough.

That approach is good and in any other aspect of life this will work. But maybe not in trading. Because in trading if you are continuously losing you need to re-evaluate your positions and see where you went wrong, temporarily stopping trading. I strongly opine that trading is not for everyone.

Maybe, on the long term they seem to cancel out.

Indicators only indicate the market psychology, they are not predictors of the future. Use the indicators diligently but even then it is a 50-50 game of correct-incorrect. Like I said, it is not a science but a pseudo-science.

Lol you are either kidding, or you've never actually traded in real life. And no, having an exchange, doing random trades over a few weeks or months doesn't count.

Any monkey can open trades and close (well actually some monkeys even find this difficult) but to be able to have the disicipline to first come up with analysis, then come to the reason that you should trade, that's the first bit of a trader so many people don't even do.

Because the hard work isn't opening a trade when your analysis and reasoning come together for a signal. The hard work is realizing oh, actually none of my analysis says trade, I have to wait.

You probably gambled, played for fun, you've never traded

I think he knows it but as you can see, he just said 'in simple terms only' and it can be a good explanation for the newbies or those who have a weak head.

Actually I think it was the opposite. Many thinks that trading is hard but once they do, they will say that they are wrong. This is why if we want something, we must ignore the negativities that surrounds it because that can only stop us easily. Of course, I'm only referring to the good things and not those illegal ones, or are literally dangerous.

When we hear the word trading, the first thing that comes in our mind is profit but yeah, this is not alone but there is also risk in each money-making activities. I think all of us knows it but it's just that some of us ignores it and skip some process because they/we are excited to earn.

It is only funny if they/we will still wonder on why they/we fail. Market may seem to be seen as independent at first, especially the crypto ones but I think there are still some manipulations that exist.

We still can make our own strategy and that would be the time for the market to favour us. Indicators are part of trading but I think this is already covered in the strategy. If we are lazy to create our own strategy for a while, I think it is also not wrong to copy the strategy of others but as long as it was only a good one. It's not that a strategy is not for all but it is just the market is moving non-stop, so that the strategy can get outdated in no time.

Trading is about understanding to because we're their is no understanding then how do you even know the right thing to do, we know how unstable the market can be, and that is one of the things that is always discouraging people from either trading or buying to hold and if you're trading you are not supposed to be bothered about the fluctuation of the market rather you take advantage of it I clearly understand how people feel when things don't go according to plan, but what do you do you keep trying, given up should even be the last thing anyone will be doing.

We know that crypto is not as easy as people think, but even at that there are people that are doing very well in the same crypto that people are complaining about the differences, mindset and understanding because if you don't have the mindset to be patient and also to follow the process When it comes to trading then you end up falling in the same category with those that are always complaining about crypto. You will lose money but you will definitely learn.

Everyone is aware that trading is all about buying and selling,  so they understand that if some amount of money is put into trading some profit can be gained from it that is why every beginner thinks trading is easy, and the main thing is just to get a capital to start up but I think in trading there is more to know about than to buy and sell.

If you use the buy and sell mindset to get into the market the outcome can end up to be very terrible one. There are things that needs to be understood,  there are characters one needs to adopt in trading. If you don't have the understanding and the characters that is required in trading even if their is a good amount to trade it won't come out to be profitable 

Those are the very basics and nothing more, trading is way more complex than that, as you need a great deal of knowledge in order to beat other traders since you are competing against them, and someone with such basic knowledge has no chance at beating anyone, so anyone that has the dream about becoming a professional trader will do well to remember that trading is probably one of the most difficult ways to earn money that exist, and if they are looking for some easy money they will end up being terribly disappointed this is not the case.

I’ll like to define it simply as, taking advantage of the various fluctuations that occurs on certain listed commodities on the market by, having a good level of understanding of its charts and certain elements which could result in a change of its movement and direction.

Understandably, this might be an easy concept that isn’t so easy to do. As such, we find a lot of traders loosing money in the market.

A lot of others just backs out after several failed triers.

That's like the bare minimum. Pretty sure anyone who has had basic education can think of that and I don't even think that's part of the fundamentals you'd want to study when trading. I'd consider the key is knowing when, and identifying the when part has like a bunch of other stuff you'd need to analyze and study from to make sure it's as accurate as possible. Not that there's any solid metric for accuracy in the first place, but you still want to get as close as possible.

Not to mention trading is a zero-sum game. There's always going to be a loser no matter what.

It is obvious that he wants to teach beginners how to trade apples) It is possible that he has good experience in this. But the problem is that cryptocurrency trading is not apples trading at all, and before you teach beginners, need to become a professional in crypto trading yourself.

When to buy and when to sell becomes important. You cant just jump into trading right on day one, you will need to observe the market and its pattern in movement to determine the point below which it does not drop and the point below which it does not rise and mark those as first buying and selling points. These points will move as market fear-greed index changes.

A lot of work is done on the part of the trader who is willing to learn even without a proper guide, because this is not an exact science. But if done properly, it can be worth it.

Trading is not that simple, in theory trading is easy but when it is done it will be difficult not as imagined. There are many things to learn in trading not only thinking about profit but also risk. There are several things that must be mastered in trading, it must be known that the market does not follow any strategy and indicator, you must have your own strategy, do not expect other people's strategies because not all strategies are suitable for us and most importantly before trading determining the risk is much more important than determining profit.

Therefore, the essence of trading is not only buying and selling but also having to implement a trading plan, have risk management, and prepare a mature strategy before doing it and of course there must be an evaluation of our trading activities.

By buying and selling apples, you don't create product and if you do it quickly, it's like trading, but trading apples. If you buy apples as a whole seller and distribute it by selling to other retail sellers, you have a business.

With a trader, he does not care who will be a buyer of what he sells on the market. It's a free market where everyone can join as buyer or seller and except it's OTC market, you simply put your buying or selling order and wait for it to be filled with Limit order or sell it directly with Market price order.

If you trade with too short candles like 1-minute, 5-minute, you will have very big risk. If you trade with such short candles and with leverage, it's more like suicide and you do it to lose money, not to get profit.

yeah trading is definitely more difficult, we're not selling things to buyer but selling it to another investor, who would like to take profit as well once the price increases. much similar with stocks.
therefore the price vary so much always changing dynamically every minute.

if only it was as simple as buying apple and reselling it at higher price, I also would like to consider what OP described as just business. just compare yearly price of an apple (fruit not stock) to BTC price chart. it will be starkly different and BTC price keeps changing every second which is far more volatile. so it's not really good analogy.

The concept of trading is simple, it is how you execute is another story. Because there are so many strategies depending on the coin itself, you will be confused at the start as to what strategy you will deploy at a given time frame.

Also, the simple trading trick is to "buy low and sell high". However, you will find out that this simple trading strategy is not so simple as it is hard to execute when you are already in the situation. Because like it or not, you will face the fact that it is hard to speculate in the market especially if you have no idea where will is the next downward or upward trend for the coin you want to trade with.

This isn't really trading, this is basically buying and selling business. If you buy apples and sell apples then you own a business, it is not trading at all. Trading is a lot quicker and it is not a product, it's something that everyone buys and sells, in business you sell to end user, so if you sell an apple, someone eats that apple, in trading if you sell bitcoins and someone buys it, they end up selling it too, and whoever buys from them also sells it too, so it is an endless trading between each other.

Sometimes it drops and sometimes it goes up and they are all fine and we just keep on trading. As long as we end up buying at whatever price we buy at and we end up just trying to keep it going until we make profit and hold it until then, it will be fine.

Many people already knows this simple basics of trading but that's not it, trading entail more than that. If you are learning how to trade, you might see it as difficult but once you put your mind to it, you will surely make enough profit from it. Most people know about the basic but they don't put so much dedication to it.

Really? If it was so easy to do something like that then everyone should do trading instead of doing anything else. In crypto trading most traders don't make any money at all and some make very less amount in profits.

It's not an easy task to convert $5 into $10 or $1000 into $2000. Those who can do something like that are the ones who have learnt trading very well and are experienced traders.

The greedy fellows who watch some videos of YouTube traders and tell others that how easy it's to make money in trading, while in reality it's not easy to make money in trading unless you aren't a top level trader.

I wish trading was as easy as you make it, you make trading very simple and naive as if a trader has a grocery store and bought 5 oranges for $5 and will sell them for $10, wow if trading was that simple everyone would rush to make a fortune from the market.

Trading is much deeper and more complex than that, there are many things you need to learn not just buy cheap and sell expensive, for example if the price drops below your purchase price what will you do?

I understand you are trying to make a brief off trading a d the concept you have put out there isn't a bad one tho it sounded too basic a concept but then you should have known that this is a crypto forum which concerns it self mostly with Bitcoin and that entails almost every discussion should be in that direction except for some boards created specifically for othe discussion which aren't Bitcoin related but somehow relating such discussions to Bitcoin will be regarded .

Trading discussion on this forum should be focused mainly on Bitcoin and probably crypto in general of which if you are to go in that context, this subject mentioned OP is just too basic and may be a mirage explanation and may further appear like a decit, because newbies may come in and find out it's beyond that for crypto in the long run, but then not to discredit your post, it's a good attempt but try to improve in subsequent posting.

Well-done op, you had just successfully made trade lok so simple so let me call my guys let go trading some assets to make money as there's no risking involved  

Op maybe you just need to go back to the basics again where you had started from in learning about trading cause you're missing something: trading is risky; you can lose or blow your account at one sitting... This isn't to scare you but it is what it is as the truth.

These steps are cool quite  alright but trading explained on paper, demo trading and practically going live with your trading isn't same. Hope someone newbie reading this don't get carried away. Lol.

You know you are posting in Bitcointalk, Right? I believe that you should have focused on the cryptocurrency exchanges and not the stock market or forex. You should focus more on the cryptocurrency side. Trading is somewhat the same, but the big difference is that cryptocurrency is 24 hours. You could always trade, and that’s why I like to have a trading bot like Gunbot.

Trading guide for dummies:


That’s the ultimate trading knowledge which everyone only needs. It is so simple, even a monkey can understand it but don’t let its simplicity fool you. It is also the most effective trading strategy.

Throw them complicated technical analysis indicators to the trash can. You don’t need any.

If you manage to mess this strategy up, you probably failed at the first step, meaning: didn't buy low enough.

Well theres much easier option to suggest if your gonna input basics on trading.

Simply do buy low and sell high (regardless) of the price as long as you sold on a good or profit price then its much easier to do trading more like a nutshell risky game. Never really tried forex but it seems crypto is more fun in my opinion and also when I asked some of my friends doing it.

What exactly you are trying to say? If you really want to teach others about trading, there are many more topics you can cover. But what you have written here, is the absolute basic which probably a school going kid knows.

To be honest, trading can be learnt from YouTube nowadays. There are multiple advance courses available as well which talks about various types of charts and various types of traits that a trader can execute in the market. You can edit your post to include some of the examples for everyone's benefit.

It's just overly simplified take of what is trading though, in reality, trading is much more than just buying thing and sell it higher price because there's also other risk that you didn't mention which is what happen if there's nobody willing to pay for the apple at higher price and whether there will be massive influx of apple supplies in the circulation.

that's why expert trader always use technical analysis to understand and make sense of the abstract nature of trading on its own.

I'd like to explain trading more of buying or selling when the price has deviation and wait until the price get back to normal again, sort of buying when market dumped too hard and selling when market pumped too hard.

OP simple as it seems, it's not. What you state is pretty basic that anyone out there reading would think it's so easy to pull of and make thousands of USD in no time but there is more to trading than just that.
Risk management, Risk Reward ratio, the game of emotions and trading psychology, learning to use indicators not forgetting technical and fundamental analysis at times

Trading is indeed risky so if you intend to trade in a nutshell, make sure you know and follow the basics, and stick to your ultimate goal why you trade, otherwise you will lose the essence of trading and you won't successfully achieve your trading goal.

The key here is experience. Without sufficient experience in trading, you will never overcome the risks and becoming a successful trader might be hardly possible.

It is not that simple as you’ve explained it here. Are you a newbie in the trading market. If you’re, you’ve only made it look so enticing to fellow newbies and if they want to actually ride on this your notions, they’ll leave the market early because they won’t be able to manage the losses they’ll incure.


This is a nutshell explanation like he said in the title of the topic. Going more detailed will bring out every other aspect of trading including the fundamental and technical analysis, the spot and derivatives etc. If someone only got to understand what the market is all about through the basics he has said, they haven’t learnt anything and when they want to use that knowledge in the market, they’ll lose heavily and will continue to lose until they get a more better understanding of the market and different confluences used in trading the market.

What do you want to discuss from this thread?
What do you want to teach other newbies with this thread?

If you want to trade Bitcoin, cryptocurrency, use a cryptocurrency exchange, either centralized or decentralized, don't use Forex. Because using Forex is risky, sooner or later you will use leverage on Forex. Leveraging means your collateral will be liquidated and you'll lose money.

Newbies Stop Teaching When You Need To Learn.
Awesome Crypto Trading

The basics must be to understand the candle sticks and the pattern, and next is to find a coin Based on your knowledge of the candle sticks pattern you can identify different trading opportunities next is upon trying to analyze the market situation you can now make a trade for a long term or short term trading always plot a TP and SL don't leave your trades open people tend to get greedy tons of trades don't follow these reason to get liquidated.

You did not mention anything like oder types, reading charts, analysis (technical and fundamenta), risk management, spot, derivative (perpetual futures and options) but you think you have explain what trading is. You have not explained anything. Trading is far more than what you have explained.

You can decide to trade forex or stocks but this forum is more about crypto trading and not forex or stock trading.

What if you go short position in the derivative market?

  Before I started trading, it took quite sometime to Learn the basics, what was I going into? I really needed to understand trading in the simplest of terms.
So here I'm going to try and explain trading in the simplest way possible.
TRADING: The buying and selling of things like stocks, currencies or goods in other to make money.

KEY STEPS: open an account , choose market (stocks or forex) etc. Decide whether to buy or sell, set your price then execute trade .
Monitor your performance , close trade (sell/buyback).
 
In simple terms: you buy ten apples for 5$ , hoping to sell for 10$ , if you eventually sell them for 10$ you make a profit of 5$ . But if you sell below 5$ you lose .
Trading can be easily understood as simply as this .