Want To trade in Crypto Like A Pro? Take Time and Research
Apr 04, 2018 Posted / 484 Views
Isn’t trading in stocks and cryptocurrency exciting? Don’t you want to be a part of these heavy conversations at the dinner where one simply shows off their investment and how they are richer everyday by “actively trading” or how the stocks are falling and withdrawing money is just as good today as it will be tomorrow?
Well, yes, who doesn’t? The science and world of stocks was a sensation already, and entered cryptocurrency and things went loose. Suddenly these dinner conversation became heavier an interesting about a currency untraceable and unregulate.
But but, if you feel like being a part of this world, then mind you, a lot many things are needed besides just money to survive here.
The first thing to realize is that the markets of any cryptocurrency or for that matter bitcoin is very different than your average stock or Forex trading. In fact, many people will tell you that traditional technical analysis (TA) will never be accurate when it comes to digital currency markets. But then the case with active traders is always different as they sway and take hit almost daily even after a detailed TA that they do.
Know your charts
A trader should always know about the profit and loss chart or the candlestick chart.
The size of the chart represents a certain time and it is one of the most important phenomenon in technical analysis of stocks. There are many other patterns like ‘Head n Shoulders, the Cup n Handle, Triple Top & Triple Bottom,” and many more funky phrases. However, these pattern help traders predict cryptocurrency price movements in the short and long term.
The two types of candlestick charts are:
Charts are simply not enough. Crypto traders take a step ahead when they go and take analytical tools to help them make the forecast for price movements. One such movement is the “Moving average data”. In this, a Simple Moving Average (SMA) is used by calculating the average of a digital assets closing value over a set interval.
An Exponential Moving Average (EMA) and Displaced Moving Average (DMA) are more complex than the SMA.
Another tool is the RSI ie, Relative Strength Index. In this an oscillatory basic is the deciding factor if the momentum of the price builds up or goes down. It is one of the most popular trading program as the calculation is made every 100 oscillations. The squiggly line typically meanders about sideways, or up or down, and if the line dips below 30 the market is oversold. When the RSI starts climbing past 70 then the analyst will say the price is overbought.
Any good trader would now study these trends and find for himself how to enter this world of stocks which changes every minute. Many crypto enthusiasts use these trends to analyse the ongoing sin wave in the market and decide its future henceforth. For instance, if there is a large exchange hack or some government ruling in the short term you can probably guess bitcoin’s price will go down a touch. If there is positive news like CME and Cboe opening futures markets some people bet the price would go up. Most traders are listening very closely to all that happens in bitcoin because they have a lot of skin in the game.
But knowing them does not mean that you will make profit everyt ime. The crypto market is dynamic that the option of slipping down is open as much as the one for growing up is. Being a professional here does not mean making only profit, but it means recovering all the loses too.
Cryptocurrencies like bitcoin can often trick traders, and all that street knowledge and TA goes out the window. One wrong prediction and everything can get ruined. So beware and be aware!
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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