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[Trading Method] Simple strategy that I use for trading crypto

Discussion in 'CryptoCurrency' started by honestIM, Dec 25, 2017.

  1. Floydiohead

    Floydiohead Newbie

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    Firstly, thank you very much.

    I am gonna get to know all of them, but i m mostly interested in crypto trading.
     
  2. fly84

    fly84 Registered Member

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    Can the concept and strategies in trading stocks be applied to cryptos?
     
  3. honestIM

    honestIM Power Member

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    Sorry everyone if I missed your messages. I have been very busy the past few days to reply decently on BHW.
    For stocks, the concept is slightly different. Stocks are assets with value and residual assets even if liquidated whereas crypto is different. This is the first fundamental different. Secondly, stocks are usually heavily leveraged by traders so profit taking or market correction happens more frequently than crypto. Crypto liquidity is limited thus it tends to move in a singular direction. If it goes up, it goes up alot without logic, but when it goes down, it goes down equally fast without logic.

    Strategy for trading is different as crypto, you need at least 15% or more profits to take position. Whereas for stocks, you can target 3% due to leverages available that can be as high as 5-10 times of your deposit. Crypto leverages are limited to around 3 times nowadays due to wild price swing.

    Cutloss is the same. Trailing stoploss as well. Always protect your profits as trader. We are not investor, we are not going to hold on to the crypto and ride market ups and downs.
     
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  4. Jenxkz

    Jenxkz Registered Member

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    3 Questions:

    Which exchange do you use?

    Do you go through each and every coin on that exchange, search that coin on tradingview and then look for the best trade?

    Before buying a coin, do you check what's currently going on with that coin by checking forums/media or do you purely look at the chart.

    Thanks
     
  5. honestIM

    honestIM Power Member

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    1) I uses Binance/ Bittrex. But Binance interface is terrible and I do not really like them. I also uses CFD brokerage for BTC/LTC/ETH for hedging. Sometimes I do use them for trading ETH or BTC especially when I do not want to convert fiat to crypto. My broker will then pay me in either fiat or crypto.

    2) I usually go for hot crypto that has cooled and study their chart pattern. Usually the top 100 coins will give me enough info. This is where I differs from PinguSpy as he/ she is more focus on going for undervalued crypto that are lesser known but gives huge returns. I prefer liquidity over huge gains due to the size of my investment.

    3) I do not read the news or fundamentals as all the info that I need are already priced into the chart. The price reflects exactly whatever news that you read unless insider trading is involved. I prefer to keep my trading strategy simple so that I do not suffer from info overload.

    For @PinguSpy I think he/she can start a paid newsletter for the amount of analysis that he/she is doing. Definitely not my cup of tea with such amount of work.
     
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  6. Decrypt3r

    Decrypt3r Newbie

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    Hi @honestIM Is there any exchange that offers stop loss and take profit in crypto just like in Forex?
     
  7. fly84

    fly84 Registered Member

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    Where did you learn to trade?

    Do you know how to read and analyze charts? How about candlesticks?

    Can you point us to the right direction on where to learn to trade.

    The only thing that I am doing right now and I know that it is very risky is that I put $10k on one crypto when the price is falling down with the "hope" that it goes back up again.

    For instance, there is one coin currently trading at 0.018 with the all time high of 0.035. I then checked on the trend and the fluctuation of the price 5 mins, 1 hour, and 1 day ago. If the price fluctuates from 0.016 to 0.025 I will not make a buy and I will wait for the price to go down further but if the price fluctuates from 0.019 to 0.25 then I will buy.

    This works all the time at the moment in which a coin bought for $10k at 0.018 and sold at 0.020 gives me $400 profit minus the fees. I know the fees on the platform that I am using are really high but I don't care for now as I am still making money at the end.

    Any advice on how and where I can learn to become a better trader? I want to learn stocks and crypto trading the right way.

    I will definitely lose everything one day if keep on doing what I am doing right now.

    Thank you.
     
  8. Tamerlane

    Tamerlane Jr. VIP Jr. VIP

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    Thanks for the interesting info, @honestIM

    Although you make it sound easy, I'm sure that it's tough. But I like your approach to not drown in information and simply read the charts.
    How often do you check your trades each day? Lots of stories of day traders gluing themselves to their computer screens 24/7, unable to sleep, etc... Do you experience this?
    In a similar vein, how often do you open trades? Several times per week?

    Finally, in relation to the criteria you described and as an example, would HempCoin (link to charts) be a candidate to buy and hold for 30 days for you, or is there something I'm missing about it? Recently hit a new high, has cooled off a little bit from that high... What do you think?
     
  9. honestIM

    honestIM Power Member

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    Major exchanges usually provide stoploss but not trailing stoploss. You need to set trailing stoploss manually. Usually I do this through a spreadsheet auto compute. Source: https://www.reddit.com/r/CryptoCurr...there_any_exchanges_that_allow_trailing_stop/

    I started learning to trade through paid courses as well as using free sources such as forums. However the best period of time where I gain the most efficient knowledge for trading is during my internship with a proprietary trading firm. Passed my probation period and was offered a contract, but turned it down as the pressure is enormous as a full time trader. If you want to learn real knowledge about trading, learn from those people who are doing this for a living. Prop desk/ bank trading desk are excellent outlets to learn. You will be amaze at how differently they utilize charting from what you learn online or through paid courses.

    Conventionally you uses candlestick to identify reversal pattern, whereas I uses price action and uses individual candlestick and assumed support/resistance point to enter/exit my trade. All other signals/ indicators are lagging indicators which means they serve no purposes other than making it the chart looks more complicated than it needs to be. The BIG DIFFERENCE here is that I stick to one way of trading with managed risk exposure. Meaning strict risk/reward ratio. I can have 30% success rate from my trade and yet still be profitable. Compared to a typical trader who needs 70% and above success rate to be profitable. As trader you can only control your reward/ratio. NO ONE can predict the market. Reading material to recommend: A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing [Burton G. Malkiel]

    You are trying to target for bottom or lowest price entry point with your strategy. However the issue here is that NO ONE knows the exact bottom. But we do know when a particular coin is getting support and buying pressure. For your amount traded, $10k you really need to be looking at coins with liquidity. With the size of amount traded, you can experience price slippages easily.

    Furthermore, what is your stoploss? How much are you willing to lose and target profit has to be at least 2-3 times higher than this amount. This is my suggestion. For crypto always be careful of liquidity.



    For crypto I only look at the chart 2-3 times a day just to manage the stoploss level. Just a quick glance is enough for me to make a decision.
    For forex, I only look at it once a day as trailing stoploss is done automatically through my VPS.
    I do not glue myself to the screen the whole day. Once you enter position there is nothing much that you can do anyway except to either take profit or cutloss.
    I only lose sleep in the beginning when I first started trading. As you get more experienced, trading becomes second nature.

    I trade 5 days a week.

    HempCoin is a potential candidate for trading. I have to agree with you. Take a look at IOTA/ TRON/ ARK/ ETH (I have just sold today with around 40% profits). Look out for opportunity to trade with them too.
     
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  10. honestIM

    honestIM Power Member

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    Just sold NEO with 100% profits. Parking 30% profits from this into TRON. Purchased TRX at around $0.07435.
     
  11. noelia22

    noelia22 Newbie

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    Wold you be so kind to share those third parties that you use to cash out your money without using coinbase please?
     
  12. iconnek

    iconnek Newbie

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    You made me related to Chris Gadner in the movie The Pursuit of Happyness. So impressed with your strong mindset as a trader. Does your method work with small trades - i.e. too small to cause the big price change on the chart?