Cryptocurrency Trading 101: Lessons from my Portfolio

Need to START with risk/reward & capital preservation management. You're headed to blowing up your account

Good luck man.

Good luck. There is a lot of value in this thread

so i am still idle in the market and that is because i have not seen any signs of a big major move. i learned while trading stocks in the past that the worst thing you can do as a trader is to rush to do something when there is absolutely nothing to do. the rush for a quick buck or two in the market will get you burned faster than anything. it cost me some good amount of money to learn this lesson and i do not want to repeat it. i will act only when i see the signs on the chart.

CURRENT AMOUNT IN PORTFOLIO: $35

ShehuAB said:

@op, can I start with something small, like 10$ or 20$?

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yes you can start with $10 or $20. but keep in mind that knowledge is power. learn, read, learn, ask questions.

ShehuAB said:

Thanks. So If understand you well, if I put 20$ for btc at 5700, and it appreciates to 5720, my gain will be 20$, 100%. Please forgive my stupid question, I am new to this.

And do help me with links, if any, to learn of trading derivates, in a simple way. Thanks.

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you are absolutely correct. and it is not a stupid question. just make sure you understand the brokerage fees though. BitMex for example could charge upto half of your profits in fees. yes it is a lot but if the price is going in your direction say from 5700, it is very easy to get to 6000. your profit will be $300 on $20 investment. half of that still leaves you with approx 600% profit.

i do not have any links that can teach derivatives in an easy way. im sorry. the truth is that derivatives are not easy to understand and trade. if you do not love math dont waste your time. begin by asking questions just as you have done here. seek answers on google. or here, i can try my best to help you.

whiteblackseo said:

Trading $100, jeez. Might wanna get more capital lol

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if i spot a superb opportunity, yes i will add some more capital.

DanielEIngalls said:

crypto currency is all new for me. I am planning to invest $100 in trading too for last week as friend of mine said after fork I can see good increase in prices.

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never ever ever ever ever trade based on tips. do your own research and get your own convictions. if not, give your money to someone who knows what they are doing.

NoirHat said:

Need to START with risk/reward & capital preservation management. You're headed to blowing up your account

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thanks. i have done that analysis. i am trading derivatives which are naturally more risky than traditional financial instruments but they are also more rewarding.

DeezNoobs said:

Good luck man.

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midnightlee said:

Good luck. There is a lot of value in this thread

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thanks. hope you guys continue to learn from here and go on to make some big bucks in the financial markets.


QUOTE OF THE DAY
Play the market only when all factors are in your favor. No person can play the market all the time and win. There are times when you should be completely out of the market, for emotional as well as economic reasons. (Jesse Livermore)

Subscribing to this thread, All the best @michaeladewale2010

I;m sry but I really dont understand how this is true.
Lets say I'm buying BTC at 5500$ with 20$, I have now (1/275) BTC in my portfolio.
Two days later its at 5800$, so now my (1/275) BTC worth 21.1$.
The profit it 1.1$.
Can you explain what wrong with my calcs? or its yours.

just start to thinking about jumpng to bitcoin bandwagon. this is new to me thanks op

michaeladewale2010 said:

you are absolutely correct. and it is not a stupid question. just make sure you understand the brokerage fees though. BitMex for example could charge upto half of your profits in fees. yes it is a lot but if the price is going in your direction say from 5700, it is very easy to get to 6000. your profit will be $300 on $20 investment. half of that still leaves you with approx 600% profit.

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What kind of mathematics is that? If you are confused by this kind of calculations, don't invest any more money in trading.

ro333 said:

I;m sry but I really dont understand how this is true.
Lets say I'm buying BTC at 5500$ with 20$, I have now (1/275) BTC in my portfolio.
Two days later its at 5800$, so now my (1/275) BTC worth 21.1$.
The profit it 1.1$.
Can you explain what wrong with my calcs? or its yours.

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your calculation is based on trading BTC directly. my thread is about trading derivatives. when you buy derivatives, you are not buying the BTC itself. you are buying a 'contract to buy BTC at a certain price'. in this example that price is $5500. the cost of the contract is $20. so in essence so you are striking a deal to buy BTC at $5500 and that deal costs $20. this $20 is all that you pay and you have an agreement in place. hope that makes sense.

few days later, the price of BTC goes up to $5800, and you have an agreement to pay $5500 for it. so technically you get the BTC for $5500 and sell it immediately at market value for $5800. but you do not have to get $5500 physically to do that. the BTC derivatives exchange supplements that for you and just gives you your profit. thats how derivatives work. there are many nuances of this but this is the most general explanation. hope it makes sense to you.

also keep in mind that if you buy that contract for BTC at $5500 and the price of BTC goes down $20 or more, then all your money is gone. its important to note this. while the profit potential is huge, the risk to your capital is just as huge.

abrahamlunggana said:

just start to thinking about jumpng to bitcoin bandwagon. this is new to me thanks op

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you are welcome. i wish you the best.

Redaline said:

What kind of mathematics is that? If you are confused by this kind of calculations, don't invest any more money in trading.

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you probably mistook me to be purchasing BTC directly as well. i hope my explanation above makes more sense to you. thanks.

There is a twitter bot which shows that 100x leveraged accounts going bust every minute. Its posting every liquidation.

https://twitter.com/BitmexRekt

You can watch live people losing 5 to 6 figures accounts thinking they can predict something that is truly random.

If anyone thinks "hm BTC goes long all the time, so I should margin it" think again. Shorter the period, more random it is. TA doesn't work. Forget Fib levels, Elliot waves, MACD, RSI, SMI it doesn't work well, because all TA theory assumes you are trading against people who also know all that, making it self-fulfilling in a way. People do stuff randomly in crypto. Space is small, and whales manipulate pleb traders.

If you want to make money, you can hold BTC over longer periods of time, and that's about it. Everything else is just gambling.

Timing the news work better than TA. I know, coz i'm making money on it so far.

Fragmaster said:

There is a twitter bot which shows that 100x leveraged accounts going bust every minute. Its posting every liquidation.

https://twitter.com/BitmexRekt

You can watch live people losing 5 to 6 figures accounts thinking they can predict something that is truly random.

If anyone thinks "hm BTC goes long all the time, so I should margin it" think again. Shorter the period, more random it is. TA doesn't work. Forget Fib levels, Elliot waves, MACD, RSI, SMI it doesn't work well, because all TA theory assumes you are trading against people who also know all that, making it self-fulfilling in a way. People do stuff randomly in crypto. Space is small, and whales manipulate pleb traders.

If you want to make money, you can hold BTC over longer periods of time, and that's about it. Everything else is just gambling.

Timing the news work better than TA. I know, coz i'm making money on it so far.

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Agreed. Lost thousands of money doing margin trades and that was when BTC was like $500 a pop. Given the volatility, I think it's best to stay away from the fancy stuff and just buy low and sell high. Very easy to sell high given how much BTC keeps climbing up.

michaeladewale2010 said:

your calculation is based on trading BTC directly. my thread is about trading derivatives. when you buy derivatives, you are not buying the BTC itself. you are buying a 'contract to buy BTC at a certain price'. in this example that price is $5500. the cost of the contract is $20. so in essence so you are striking a deal to buy BTC at $5500 and that deal costs $20. this $20 is all that you pay and you have an agreement in place. hope that makes sense.

few days later, the price of BTC goes up to $5800, and you have an agreement to pay $5500 for it. so technically you get the BTC for $5500 and sell it immediately at market value for $5800. but you do not have to get $5500 physically to do that. the BTC derivatives exchange supplements that for you and just gives you your profit. thats how derivatives work. there are many nuances of this but this is the most general explanation. hope it makes sense to you.

also keep in mind that if you buy that contract for BTC at $5500 and the price of BTC goes down $20 or more, then all your money is gone. its important to note this. while the profit potential is huge, the risk to your capital is just as huge.


you are welcome. i wish you the best.


you probably mistook me to be purchasing BTC directly as well. i hope my explanation above makes more sense to you. thanks.

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Thanks for the explanation, never heard of it.
Pretty much making a short ot BTC?

Fragmaster said:

There is a twitter bot which shows that 100x leveraged accounts going bust every minute. Its posting every liquidation.

https://twitter.com/BitmexRekt

You can watch live people losing 5 to 6 figures accounts thinking they can predict something that is truly random.

If anyone thinks "hm BTC goes long all the time, so I should margin it" think again. Shorter the period, more random it is. TA doesn't work. Forget Fib levels, Elliot waves, MACD, RSI, SMI it doesn't work well, because all TA theory assumes you are trading against people who also know all that, making it self-fulfilling in a way. People do stuff randomly in crypto. Space is small, and whales manipulate pleb traders.

If you want to make money, you can hold BTC over longer periods of time, and that's about it. Everything else is just gambling.

Timing the news work better than TA. I know, coz i'm making money on it so far.

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i can show you hundreds of people who lose money all day as well watching news like you. anyone who told you technical analysis doesnt work either does not understand it or doesnt know how to apply it. some of the best that ever did this used technical analysis. large bank corporations build their models around technical analysis. and technical analysis is far from guess work. price movements reflect human behavior and if you can interpret what you see in the charts, you have a good shot at making money in the market.

i have traded in stocks using TA and FA and i can tell you my returns in TA were 10x better than when i used FA (and this might be understated). all those indicators you mentioned are useless to me. i do not use any of them. i only watch price movements and volume. that tells me all i need to know. all the best.

michaeladewale2010 said:

i can show you hundreds of people who lose money all day as well watching news like you. anyone who told you technical analysis doesnt work either does not understand it or doesnt know how to apply it. some of the best that ever did this used technical analysis. large bank corporations build their models around technical analysis. and technical analysis is far from guess work. price movements reflect human behavior and if you can interpret what you see in the charts, you have a good shot at making money in the market.
i have traded in stocks using TA and FA and i can tell you my returns in TA were 10x better than when i used FA (and this might be understated). all those indicators you mentioned are useless to me. i do not use any of them. i only watch price movements and volume. that tells me all i need to know. all the best.

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Can't wait to read your success story here bro. I wish you luck.

Good Luck Mate

michaeladewale2010 said:

i can show you hundreds of people who lose money all day as well watching news like you.

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Just to be clear I don't read articles written by moron journalists. What I mean i do best research I can and decide for myself. I follow github, forks developments, read source code commits, check real updates first hand. When I say timing the news I say i know exactly on which block forks will happen, and know how average trader thinks, what he holds and why.
I think you mistaken me for some average idiot crypto guru.

michaeladewale2010 said:

you probably mistook me to be purchasing BTC directly as well. i hope my explanation above makes more sense to you. thanks.

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You are right I ignored that part. But as other guys said, what's the point of trading margin with something as volatile as BTC, since you are just increasing your risk. Small movement erases your whole stash, there is plenty of action to just earn something trading regularly.

Fragmaster said:

Can't wait to read your success story here bro. I wish you luck.

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thanks a lot. i greatly appreciate.

AmRyanThomas said:

Good Luck Mate

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thanks

Fragmaster said:

Just to be clear I don't read articles written by moron journalists. What I mean i do best research I can and decide for myself. I follow github, forks developments, read source code commits, check real updates first hand. When I say timing the news I say i know exactly on which block forks will happen, and know how average trader thinks, what he holds and why.
I think you mistaken me for some average idiot crypto guru.

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that's good and i respect your trading methods. but just as you study these metrics, there are also people who study the charts and trade based on what they see there. You use Fundamental Analysis (FA) which is based on what you believe the market is about to do. They use Technical Analysis (TA) which is based on what the market is already doing. i think there is an argument on both sides. and i know people from both schools of thought who have made money in the market. knocking off one school of thought because it didnt work for you or because you are not convinced by it doesn't make it wrong. i wish you the best and maybe we can do a joint venture in the future. thanks.

Redaline said:

You are right I ignored that part. But as other guys said, what's the point of trading margin with something as volatile as BTC, since you are just increasing your risk. Small movement erases your whole stash, there is plenty of action to just earn something trading regularly.

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timing is everything my dear friend. trading margin/derivatives is not a game for noobs. you MUST know and understand on a very deep level what you are doing. yes the risk is high and i try to make sure i let people know this. but the profit potential more than outweighs the risk. there are various methods of controlling your risk with margin/derivative trades but the MOST IMPORTANT are buying at the right time, selling at the right time, and protecting your money (by hedging your positions and setting sell-stops).

so i have been waiting and watching the charts for a profitable signal. that signal came on tuesday (october 31st). i purchased BTC contracts at $6225 and sat in the position till it got to $6700 and i sold with a 946% profit. i recovered all the money I lost in my previous trade (65% of my capital) and have eventually doubled my capital. i sold early though because as you all can see BTC has since risen to $7000. but thats ok. i sold based on the signals i received and as i learned from my previous trade (where i lost more than half of my capital), have a healthy fear of the markets.

STARTING CAPITAL: 0.0171BTC ($100)
CURRENT CAPITAL: 0.0523BTC ($366) (266% PROFIT)
TIME FRAME: 14 DAYS (Began Journey in October 20th)

Now I have sold all my BTC contracts. My task is to wait for the next opportunity to kill

LESSON LEARNED: Whatever has been will be again. What has been done will be done again. (The Bible, Ecc1:9)

Bitcoin is killing all other cryptos