After a long while of dancing around and going around the bush trying to avoid that topic, I eventually mustered all the courage I need to try and at the same time have a feel of the lay of the ground. I was expecting to be familiarized with the process and to make use of the controls in Binance trades but I was pleasantly surprised to later learn that I have picked up quite a lot from my first try ever.
I went in and traded some BCH for my first attempt. I was equipped with the knowledge of "buy low, sell high" only. I have zero strategy and no other tactics in mind. And then I made the trade. At the end of it I made quite the cash. I made 1500 US pennies. And that is in USDT.
And after all the steps I took and the outcome has been observed there were a few realizations I made.
Time and Timing
I gathered that you can't just start trading your coins whenever you want to. Especially if you are holding those coins for a while. In my case, I was holding my Bitcoin cash for over 2 months already and for that time I know what the average price value of BCH is. So I can't fathom selling it at a cheap price. I waited for the time when the price is quite acceptable before I made the trade. I imagine it was possible to trade it at any time if I was not worried enough to care for its value. Also, it would be possible for a new trader to trade at any time if they don't care about the past value of the coin and decided to start with a clean slate and decided just play the market's future.
But for me, I decided that I should trade considering the right time with the right timing. Just like any other thing in this world of ours, timing is the key.
Also, time is really important. Because in trading there are different intervals we can use, unlike the usual stock market trading which opens and closes at business hours, trading in crypto can be done in minute intervals. In the stock market you will have to wait for a day to see the movement of the exchange but in crypto trading, every minute is a new day and you can buy and sell at any time, so at any given minute you can earn or you can lose money.
This is another concept that I always read from a lot of articles from our trusted authors here. They are always advising people to learn how to diversify their assets. At first, I didn't understand why it was necessary to care about other coins if I just wanted to keep BCH alone. When I tried trading, it made a little bit of sense to me.
Again, I traded my BCH to USDT at a certain price. And applying the only principle I know which is to buy low and sell high, it meant that I have to wait for BCH to dip in price, lower than what I used to sell it before I can buy again some BCH back. That is if I want to make a profit because if I bought back BCH with a price of it equal to or higher than its price when I sold it I will clearly suffer some losses. And of course, no one wants that. So this is where diversifying comes in.
While waiting for the BCH to lower its price again, I decided to play with other coins first. That is why I ended with some BAKEs, CAKE, BNB, and XRP. I had to look for some that can be played with against my USDT while waiting because if I don't my funds will just be sleeping and I did not deposit there to hold them, I want to use them in trading so trading they shall be used.
Multiple Fund Streams
I also learned that you can't just focus all your funds in one asset. This may sound redundant with diversifying but I just wanted to emphasize the importance of setting your funds' boundaries clear. There are times that I felt that my funds were tied and stuck on an asset and selling them at that low of a price is something I found unbearable so I am left with no choice but to wait it out. Meanwhile, I should have some other funds that I could use if I want to trade continuously while an asset is on hold. I'll have to make use of other funds until that particular set of funds is viable to be sold at a gain position.
Trading is NOT for the Faint-Hearted
Mostly, in all sense of the word, trading is like gambling. It is betting on the asset's price movement. It is just like playing a game of cards called Hi-Lo wherein you try to predict the next card dealt if it is higher or it is lower than the previously dealt card. Sounds familiar right? Although predicting the cards will be much easier because it's just probability and it can be plotted into a mathematical formula.
I figured it is the same with trading and the probability of the next movement is just 50-50 right? It's just either it will be higher or lower right? But even though the odds look good, the same thing in gambling, a few bad hands in a row will send you into a whole new world of trouble.
In the end, it really is a game of prediction. For me I could not perform complex computations of probability in a matter of seconds then it will just be a guessing game for me.
Quick Cash Quick Triggers
I went in thinking that I would learn how to earn quick cash even in small amounts. What I learned however is that I just could not do it. Because if I want to do that quick scheme I should invest my undivided attention to the chart and to my orders. I should observe and guess how the price would change in a minute or at every 5-minute mark. And with that, I would try to take advantage of the price change in each interval thus requiring me to place a series of buy and sell orders alternately and in fast successions. That will require me to keep my eyes on the screen and my finger on the mouse trigger or mobile screen, which is something I couldn't commit to.
So I just resort to a semi-long term trading with patience invested into a waiting game.
It still holds its truth, the best teacher is experience. I have read several articles on trading but everything that was indicated is nothing but plausible theories until I have experienced them myself.
Diving into the trading game requires courage and acceptance that you could lose money as much as you could earn some.
If you decide to also dip your feet into the trading arena you should be well-read and you can try with some acceptable amount in the beginning. That's also one good thing in crypto, the minimum amount required is not that high unlike in the stock market. No one is telling you to trade in the hundreds from the get-go. Use minimal amount until you are comfortable and accustomed to the transactions.
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