Hello, this post about trading is intended for Newcomers.
First of all, I am not a pro trader, I am even very far from it. I learned and continue to learn by doing spot trading but I plan to try Binance Futures (leveraged trading) very soon. When i started or rather tested trading with Binance, i didn't know anything about trading.
Well it has to be said : trading comes with risk, you can lose money. If you are overly emotional, I would advise against trading and instead advise you to make a medium to long term investment plan. Indeed, staying calm, being patient especially not being overwhelmed by your positive or negative emotions is essential.
In trading, it is often decisions made under the influence of emotion that will lead you to make mistakes :
- It is very easy to press buy / sell buttons on a trading platform, it is so easy that it can get addicting.
- Even a positive emotion, for example you just made a series of winning trades and you become overconfident. This overconfidence can make you take too much risk on your next trades. Risks that you would not normally have taken.
- On the other hand, if you completely lose confidence following a series of bad trades, you will be afraid to enter a position and you will hesitate too much.
- Fear of missing out on an opportunity and chasing the price, which is certainly not to be done.
Because there will always be opportunities, on another crypto and even on the crypto where you missed an opportunity. If you are patient there will always be downward or upward retracements and therefore new opportunities as the crypto market is volatile.
In an investment, one can use the DCA method and / or expect downward corrections. The objective is to smooth out its purchase price over time and to wait patiently over the long term (several months or years).
For trading, it does not matter the price when taking a buy or sell position. We take a position because our analysis tells us that there will be a bullish or bearish movement. Of course it's always better to be able to buy as low as possible or sell as high as possible but don't try too hard to have the perfect tops and bottoms, it's often counterproductive especially when you're just starting out .
I remind you that any analysis on a market is a prediction on the future and that a prediction can only be based on probabilities.
When taking a position in a trade, you need the odds to be on your side, but keep in mind that there is always a chance that the price will do the opposite of what you expected. You must therefore think carefully about your risk management and make trades with amounts adjusted in relation to your capital allocated to trading.
The decision not to trade at certain times is a trading decision. It can be very difficult to determine what the market will do and in this case it is better to wait and see the development, the signs that allow you to take a position.
As I say on my site in the trading page (intended for newcomers too) :
The worst that can happen to you is to put everything in a trade and lose...
It's like going all-in to the casino or arcade games when you lose :
PLEASE INSERT COIN
When you start trading, the goal is to train yourself at your own pace by seeking information, by regularly observing the price of one or a few cryptos, learning to use the various trading tools such as moving averages, rsi, fibonacci, etc.
At the very beginning, I traded a lot on the BAT/BTC pair and a few other altcoins. I chose BAT because the Brave project seemed promising to me and I liked it (which is still the case). I do not particularly advise you to trade BAT (especially BAT/BTC because in a Bitcoin Bull Run, it can be difficult to trade Altcoin/BTC and easier to trade Altcoin/USDT when you make your first trades, it is according to preferences). But I advise you to choose cryptos that you trust for your first trades and to avoid cryptos that you do not know at all.
Trading is far from being an inaccessible activity. Especially in this crypto market where there are many opportunities.
Thanks for reading my post and happy earnings :)