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Bitcoin: Levels of Price Action One of the first most important and fundamental thing for any trader to do, is to properly define price levels on chart. Dealing with Bitcoin price in 2019 you can witness it's peak near 20 000 price range and as price went down by now to 3750 area, this means most traders will set their levels at closest round numbers like of course at the middle 10 000 and lower 5000 level. Second important levels are intermediate primary like 2500 and 7500 which are calculated by dividing main levels in two, and finally you get secondary intermediate levels 8850, 6250, 3750 also calculated by division in half. As you can see on BTC chart these levels work out perfectly well. Setting levels is a very simple part of TA, but it gives a lot more comfort and vision, when making trading decisions. Good Luck
BITFINEX:BTCUSDEducation
by leonidtoburokov
Bitcoin Cross is about to happen! See how to trade the pattern!The 1D MA50/ MA200 Cross (Golden Cross) is about to take place and you are still wondering how to trade it? Well the last time that happened in July 2015 following the previous bear cycle's bottom, Bitcoin pulled back by around -35%. Then the price rebounded towards a Death Cross (1D MA200/ MA50) that made it consolidate before a new (and final) Golden Cross that pushed BTC to new highs. The Distance between the 1st Golden Cross and the Death Cross was around 62 days and the (D) between the Death Cross and the 2nd Golden Cross 42 days. I have tried to plot the same pattern into today's chart. The conclusion is yours! *Bonus the Ichimoku Cloud which plots a path ahead of the Crosses! It never hurts to look at related material: The MA cross on the 1W chart The pull back explained by the RSI
BITSTAMP:BTCUSDEducation
by TradingShot
92
Bitcoin 4-Year Cycle 3As you can see in the chart above, BTC has had 4-year cycles of bull and bear markets. The purpose of this idea is to keep in mind the big picture in regards to BTC price. In my opinion, Cycle 3 has now begun. It was a brutal bear market but believe it or not, it was shorter than the Cycle 2 bear market by a few weeks. However, it is important to understand that even though the bear market is over, we are still a long way from new highs and parabolic moves. If Cycle 3 acts similar to Cycle 2 in terms of time and price, the following timeline is expected: - BTC retests previous high/makes a new high in December-2020/January-2021. No one and I mean no one (news, family, friends, etc.) will give a shit about bitcoin until it hits a new high. This is why the smart money is invested around this time ($3,000 to $5,000) near the Cycle 3 low. - BTC goes crazy (parabolic) between June-2021 and November-2021. Expect a lot of talk about crypto in general during this period. You'll hear about it on TV, newspapers, family, friends, etc. - BTC crashes hard on January-2022. As usual, when everyone and their mother is invested in crypto, it will crash HARD. NOTE: The above timeline will NOT be 100% accurate. However, it provides a great perspective on how long it takes for BTC to make a significant move even if the cycle low is already behind us.
BITSTAMP:BTCUSDEducation
by Fib_Trades
2
FIB, RSI, MACD, AND BREAKOUT PATTERNS ARE TRASH! (MUST WATCH!)I'm aware the title has offended you. Read through this post anyway, I'm sure I touch up on your complaints. Stop forming your identity around your strategy. Even I am not immune to this. it’s all too common to form a personal relationship with the tools you’re using to trade. Whether that’s the indicators on your chart, your Gann shooting star wave pattern Fibonacci double top, or your boutique breakout patterns. It doesn’t matter how bland, innovative, common it is or if it’s the “golden standard” everyone worships and trusts. I’m happy that you like it and found something you identify with. It should be nice and comfy for you to settle into that confirmation bias, “Mm, yes it is indeed a double top” as you scroll through the fifth page of the Tradingview ideas section, pinpointing the chart that agrees with you. There’s a better way to do things. I don’t care what you’re using, maybe, just maybe, there’s a way to improve your strategy. I can confirm this idea is seen as wildly offensive. Ask someone why their strategy works and they’ll cringe like you just asked them if their spouse is cheating. “How dare you question their effectiveness! I’ll let you know we have a long history together and I love them very much.” I’m sure you do, but have you noticed some of the warning signs? They’re all right there in front of you. It may not feel good when I ask, but if the signs are there and 3/4ths of marriages fail, it wouldn’t sit well with me if I didn’t speak up just to keep you comfy cozy. Analogies aside, your “spouse” is your strategy. The warning sign is that you keep on losing trades, blaming your loses on “volatility” without wanting to admit what the real problem is. Perhaps you’re still green for now, just wait for a larger sample size of a trade history. Much like your imaginary marriage, the odds are wildly against you. Why do you think 95 plus percent of traders fail? You can massage data however you like, the problem is at some point you decided to stop improving because you got confident. If you met a tribe in the wilderness who planted fish in their fields as “an offering to their gods” in order to grow bigger crops, what do you do? Do you keep quiet about their ways? Sure, their crops WILL grow larger because of this tradition, but not for the reasons they believe. Would providing them industrial fertilizer and a crop rotation plan improve their crop output? Absolutely, but that would require that they admit they’re wrong and would be contrary to their identity. You’d get the response “but it’s worked for us so far! What we’re using is a proven standard.” Their blind faith in their dogma would prevent them from seeing that maybe, just maybe their is a better way to do things. If you don’t know why something works, you need to be skeptical regardless of how effective it is. Don’t be satisfied with mediocrity, comfort and undeserved confidence will only get you so far. There will always be someone with more experience, money, knowledge, and connections than you. You’ve brought a knife to a gun fight and have decided not to pick up the gun because you got some lucky stabs in. What’s worse is this even isn’t a gunfight, it’s thermonuclear war between institutional investors. If you're a middle school basketball star, do you cry when you skin your knees after getting fouled when you chose to play street ball in downtown Detroit? No, because you should have known what you were getting into, and if you do cry, all the street ballers will tear you to shreds. If you don't want to play street ball and learn to play like everyone else does, go back to your middle school basketball court. If you can't understand why you keep getting hurt trading crypto and are unwilling to adopt the winning fighting style, go back to trading securities. Winners don't need to play by the rules of "golden standard" of TA.  What if the "golden standard" is only so because they're tools that make you predictable for people who know better? If you have the masses all trading the same information, that makes for predictable moves.  Predictable traders make for a predictable market. A predictable market makes for a profitable market. The only reason you've been given the "golden standard" is to provide liquidity for those with more buying power, resources, knowledge, experience and connections than you. Specifically concerning the crypto market, there are additional flaws. "There’s a general point here to make about standard oscillators like RSI: the numbers used for them basically assume conventional markets and typical oscillating ranges. They were not designed to describe dramatically trending coins. In such trends, they tend to go deep into “oversold”/“overbought” territory and persist. You may get several divergences before the one that actually reverses after exhaustion. I wouldn’t call it useless so much as having far lower predictive power than advertised. It’s also something so widely used that you can virtually guaranteed not to have an edge from that information." -acatwithcharts If you ARE interested in a better way to do things, I am inclined to think my findings aren't half bad. Click through the links below and in my signature to learn more about how I do things differently.
COINBASE:BTCUSDEducation
by DadShark
10
The party is just around the corner on BTC and you are not late!Ok apart from the humorous title, what I want to make clear on this chart is that Bitcoin has entered the final stage before the lift off. Before every low is higher than the previous. Before the new bull cycle essentially begins. How that happens? Well for starters we can, with a high degree of certainty, say that the bottom is in (priced on December). The reason is clear on the chart particularly on the support offered by the parabola. So where are we now? Well BTC sits on a tight squeeze within the weekly MA50 (applying Resistance) and the MA200 (applying Support). In the previous cycle the final test of the MA200 signaled the start of the new uptrend. Why? Because the MA50 was crossed emphatically and became a support ever since until the new All Time High. So when these two conditions are met, I expect a non-stop rally to take place. I would consider the Halving also but I don't want to make the chart too complicated. After all trading Bitcoin has been and still is pretty simple because every cycle is fairly similar to the previous one and follows a specific set of rules. If you are an investor, wait for that long term buy, forget your investment for 2-3 years, come back and profit. If you are a trader, buy on every pull back during the bull market and sell on every rise during the bear market. Now why I say this? Because traders can wait for that pull back for the final test of the MA200 to reload longs, as I have been making quite clear on my last analyses (see below), while investors can feel pretty comfortable accumulating more coins on every pull back. Are you waiting for that magical moment too and start the party??? Let me know in the comments section!!
BITSTAMP:BTCUSDEducation
by TradingShot
43
Bitcoin - another week or two to go for bulls for sureWeekly MACD custom (6,13,close,31) did my Fibs from when Histogram turns red (not shown) only blue MACD line. Blue MACD line creates interesting levels of support when turns up from bottom. Comparison with 2014 - 2015 suggests this is a 4-5 week run counting from the Parabolic SAR dots below candlesticks. I'll add in Chart with full MACD pic. below If you want to got further back with MACD 2014 - 2015 here it is
BITFINEX:BTCUSDEducation
by UnknownUnicorn2181194
The Key Elements to Succeed in The Financial MarketsIt was expected that the main message which I tried to pass to you in the last educational post would not be so popular. I tried to talk about things which are not catchy and their effect will be shown only in time. Work hard and reach your goals. Work hard and become a profitable trader. Work hard in order to get access to new opportunities. But at the same time, I got an additional confirmation of why 90% of people fail in trading. Why «gurus» and «legends» are so popular and why the community was spoiled by pushing forward simple solutions which can make millionaires from everyone. On the other hand, not too many millionaires here, so it seems the quick and easy route, as expected, does not work. We have to understand that the majority of people in any trading community is made out of people who don’t have an interest to become successful and change their life to the better. They want to become rich as soon as possible and, for them, sweet dreams have higher priority than hard work with real results. For those, who could get the message correctly, we will move further and in this post. Let’s talk about the key elements which any successful trade must have. Let’s talk about the basis of success! Let’s try to make the clarification of what you must have for profitable trading and which tools to use. It’s pretty simple – there are 3 key elements. KNOWLEDGE, EXPERIENCE and TOOLS - are everything you need to succeed in the financial markets! There are no other ways or magic tools which can bring you to success. Only these 3 elements will become the solid basis for reaching your goals. Let’s talk about them with more details. KNOWLEDGE - you should be very naive thinking that you can become successful without knowledge. But it is not sufficient and you can’t stop half way: knowing just a part of what is required won’t be able to move you to the top in any field. Knowledge is what separates novices from professionals. The level of knowledge makes the difference between failures and success. Look around... How many people you can find who become successful without knowledge in their field? I guess not so many. I guess Elon Mask reached his level only because he is smart guy and he spent many hours learning something new. That’s why he holds 2 degree in physics, one in economics one in business and a PhD in energy physics. I’m sure his level of knowledge allows him to think out of box and create the things which can change the World. Mark Zuckerberg had good knowledge in programming and it helped him to create Facebook. I want to know, could someone create something big, interesting and useful, or just reach the top without knowledge? I think we all say - it’s impossible and it will be the correct answer. An attempt to build something or reach a goal must be supported by the knowledge in that field. And it’s logically. And what is illogical then? Novice traders deciding to base their decisions on little knowledge or none at all. Why when you start trading you decide to skip knowledge and you don’t want to waste your time and efforts on acquiring it? How are you going to become rich without the most important element? Knowledge plays a very important role. It gives you the solid basis for your growing as a trader or investor. Knowledge helps you to understand what you are doing and how you can reach your goals. Knowledge allows you understand where you are right and where you made mistakes. Knowledge helps you become better. Day by day reading about trading, you grow as a trader. With solid knowledge you have a solid support behind you which helps you move in the right direction and reach your targets. The Real World is open for everyone who wants to improve himself and become smarter. The Internet provides tons of knowledge. You get any answer you want just by typing the question in Google. And you just need to make this step and start learning what you have to know for successful trading. When I tell you - you must work hard for become successful - think about it as you have to put all your efforts for getting new knowledge in the field where you know nothing. Everyday try to learn something new. Try to understand what you did yesterday and how it effected on you. Get knowledge from books, articles, videos, courses and become better day by day. I started 12 years ago and to this day I still invest regularly into new knowledge and I will continue to do so in the future as well. Start each day thinking - Knowledge is Priceless! Try to spend each day a bit of time to learn something new. Find the time, put your mind to work and put efforts in learning how to read the financial markets. Even if you spend 30 minutes or one hour per day in some time you will be able to create a solid basis for the next 2 elements which you need to reach your goals. EXPERIENCE - the 2nd element after knowledge. Probably you already know how experience helped you in your life. How it helped you to avoid mistakes or do something in the right way. Experience in all activities plays a very important role too and the same goes about trading. If you passed through some situations, there is a good chance that in the future passing through the same situation you will do things faster and better and in a correct way. Experience allows you to do things properly and in combination with knowledge it creates something really powerful. With these two elements you will know what to do and how to do it. Let me give you a simple example: You started trading without knowledge and you blew up your money. Which experience did you get from this? If you don’t care about knowledge and experience – then you would not have paid attention or learned any lesson from this. You would repeat again the same actions and by no surprise you will meet again with the same result. But for those who would like to really succeed in the financial markets you should take some lessons from the previous scenario: - you lost money because you made something wrong, analyze what that was - you made mistakes because you did not know how to trade properly, now you know how to avoid blowing up your account if you will be in a similar situation - if you do the same next time and change nothing, you will get the same result. So next time, you will try something new based on your knowledge and experience, and expect a better outcome. The past experience can protect you in the future and help you to avoid mistakes. Also the past experience can help you to improve yourself in order to get better result. Knowledge will give you the ideas which you will apply in order to become better. Experience will remind you when to apply which knowledge for which particular situation. It’s a very simple example of how experience in combination with knowledge can make better results for you. But there are millions of different situations which can be useful for you and can help you to become better too. You just need to gather your priceless experience and combine it with your knowledge in order to become better. The problems of all novice traders are: - they don’t understand the future effects of their actions in the present - they don’t have the necessary experience to know why not trade without stop orders or why they need to follow the proper money management strategies. Knowledge can explain these simple things, but not all of us like to follow the theory without trying it by ourselves. Probably we must test it in order to trust it, and that’s ok it’s human. That is why personal experience plays such an important role. When I told you - work hard – I meant that you have to spend time and put efforts to combine your past experience, make your analysis, understand it, learn from it and use your newly gained experience in the future. You can get experience from everywhere. Every trade can give you a piece of experience and it does not matter if it was a winning or losing trade. Both scenarios are good teachers. Every mistake which you made is priceless for your future. Every new market movements can give you insights on how to act in the same conditions later. Everything which can be learnt from experienced traders should be taken by you in order to grow your personal experience faster. TOOLS – the third element, and the one which is the most popular among the novice traders. TOOLS combine everything which helps you to trade and make money in the financial markets - trading signals, trading strategies, trading robots, market overviews - all these make up the tools we use. Novice traders like to think that they only need a profitable trading strategy or profitable signals in order to start making money. Unfortunately no. That is so far from real trading. Trading Strategies and trading signals won’t make you rich because of several reasons. Trading signals like trading strategies are only a tool. Can you imagine that you will become a good musician only if someone can give you a good musical instrument? Can you imagine that you will become a good photographer only if you can buy a good photo camera? There are many example which can be taken confirming the main idea - tools are just tools. If you don’t have the knowledge and the experience to use these tools, they will be unworkable and useless for you. That’s why the same situation we can see with novice traders, when they search for and get tools, but know nothing how to use them correctly. Not all tools can be suitable for you and your goals. For example, if you want to create music, probably a photo camera is not the best tool for you. If you want to build something, probably a guitar is not the best tools for this. The same goes about the trading. If you use the wrong tools which are not suitable with your lifestyle, nature, conditions and your goals – what makes you think you will succeed? I know good examples when traders bought trading strategies for day trading, but they could not follow them because they had to work full time every day. They broke the consistency of these trading strategies and got results which were far from expected ones. I know examples when traders started using trading signals which were focused on long term trading and big capitals. Having small capitals and breaking the rules of proper money management – their results were not amazing either. The same goes about traders who wanted to trade following trends, but they used range strategies or trading signals based on such strategies and all these were against the nature of the movement. These traders started having negative results and lacking the knowledge and experience they were usually pushed out of their comfort zone and this feelings further made them make more mistakes and break more rules. It’s all downhill from there. As a result, using workable tools in wrong conditions which also don’t match your lifestyle, nature and goals is never a good idea. If you do this, you will be as close to failure as possible. Don’t be surprises if you results will be far from expected ones. In order to understand all this, you need to have knowledge and experience. Trading signals, trading strategies, trading robots won’t make you rich if you don’t have the knowledge and the experience to use them correctly. But combining these three elements, they will give you everything you need for successful trading. When I tell you - work hard - I mean you have to put a lot of efforts trying to find the workable tools for you. But the best variant is the one where you gained enough knowledge and experience to be able to design the tools which will match all your nature, lifestyle, conditions and goals. CONCLUSION In this post I tried to explain to you why knowledge, experience and tools are the main elements of successful trading in the financial markets. It won’t be possible to reach your goal having only 1 or 2 of the elements. They must work together, like the legs of a tripod, 3 parts supporting each other make the solid base together. Working hard, you will be able to gain and control these 3 elements which will help you to reach your goal in the financial markets. If you are lazy, keep searching for trading strategies and trading signals thinking that they will make you rich. In the next post, we will talk about - what do you need for profitable trading in the financial markets. You will learn 5 different things which every trader must have in order to make profit in long run. If you like my work, please support it by your LIKE. If you have something to add, ideas, thoughts, please leave them in comments. I will be glad to discuss with you. Don’t forget to read the other posts about trading, they will help you to understand better where you are now and what you have to improve in order to start heading towards the 10% successful traders.
BITFINEX:BTCUSDEducation
by DLavrov
30
90% of Traders Lose Their Money! Do You Really Want to Succeed?This is quite possibly the most important message I can deliver to those of you who’ve decided to start trading in the financial market. This message is for those of you who’ve joined this Financial World viewing trading as a new business or perhaps as a way of having fun with money. I’d like to take this opportunity to impart a lesson which has the potential to push you in the right direction from the beginning of your journey and lead you towards new opportunities and a better life. If I fail, there will be more disappointed people leaving the financial market and only because they stepped onto the wrong path. I would be disappointed by this because I don’t like when people lose money trying to improve their lives. Broken dreams don’t motivate. I want to share with you ideas, thoughts, and suggestions which might help you reach success in trading or at least push you away from the traps and pitfalls which are so enticing to the uninitiated. I won’t be able to promise you that you’ll become a successful trader or investor. As usual, everything depends on you and your efforts. Different studies may report slightly different numbers but the core conclusion is the same - the great majority of traders lose their money and leave the financial market disappointed. I hope that you can accept this statistic as fact, even though there are so many «millionaires» all around us. Trading is a difficult thing if you’re not ready. Trading is a very simple thing if you know what to do. Let’s talk about you. You decided to change your life and opened trading accounts in the financial market as a means of achieving your goal. Though you may have gotten your start in crypto or forex, I want you to understand that at its fundamental level trading works in the same way. This was your first step in this direction and you’re ready to make money day by day. You’re ready to become a millionaire and are imagining the new house with a big pool, a super fast car, and attractive people all around you. You deposited money and started trading. The faster the better, as you have a lot of things which you must buy as soon as possible. If you’re lucky you’ll be able to make some money and receive confirmation that trading is for you and it’s so easy to make money. You keep trading more and more. If you’re not so lucky, your fairy tale will probably be finished much sooner. You’ll end up with 0 in your account and plenty of disappointments. If you used all of your money, including your savings and you lost them right now - you must surely be very disappointed. Your dreams are broken and you don’t know what to do. Novice traders keep repeating the same mistakes – no matter who they are or where they’re from. It wouldn’t be too far from the truth to say that novice traders like losing money. In fact it seems that novice traders actually do their very best to lose money and if there were a reward for this behavior some of them could win an Oscar statue. I can say this because I’ve traveled this road when I was super cool, blowing all of my money back when I started trading. I can say this because of the knowledge and experienced I’ve acquired studying and trading for 12 years. I can say this because of the messages I receive almost every single day from novice traders asking me for help on how to manage their losing positions and how to recuperate the money they’ve blown up the day before. How many of you have walked the path from novice to professional trader? How many of you think, “Shit, why do I keep losing money trading… maybe I’m doing something wrong?” People fail in the financial market because they do nothing to become successful! No pain. No gain. Let’s take a short poll: 1. Would you like to become rich very quickly without any effort? 2. Would you like to work hard in order to become a successful trader and change your life for the better? Please, be honest with yourselves. The vast majority of people will have picked the first option because it’s catchy, because it’s the simple way. I will do nothing and become rich, yes, why not!!! It’s probably possible in your fairy tales, but the real World is a little bit different. In order to become successful, you must work hard towards achieving your goals! This truth isn’t only applicable to trading in the financial market, but everywhere you want to achieve your goals. You must work hard every day taking steps towards your goal. You must work hard when you don’t want to. You must work hard pushing through failures. You must work hard when nobody believes in you. You must work hard when even you stop believing in yourself. Work hard, every day work hard towards achieving your goal. Boring and unpopular? It doesn’t sound very catchy… right? Maybe a little, but it’s far from the simplest way to success. In fact it’s not simple at all. If it were simple everyone would be doing it. Take the easy way and you’ll have brief success on paper, but do you really need success on paper? Perhaps the practical solution which can actually lead you towards success is better? It all depends on you. Do you really want to change your life for the better or not? Do you really want to open up new opportunities for yourself? It really depends on you. Do you want financial independence or not? Hard work separates those who have no goals in their lives from those who really, TRULY want to succeed at something. Please, decide for yourselves, are you ready to start working hard every day to become a professional and as a result become a successful trader? Are you ready to study trading? Are you ready to gain new experiences? Are you ready to pass through failures - to fall and get up every time after falling, and move forward day by day? What TO do: If you’re ready, you will be rewarded. There is no other way towards success. There are no magical tools or super secret paths which can lead you to the Top. There is only one workable way - work hard! If you want to join these 10% of successful traders in the financial market you have to do what those top 10% did. If you want to approach becoming one of the 10% of successful traders in the financial market and you put effort into this, one day you will join them. Because believe me, they put in the effort. Have no doubt about it. If like many people you’re too busy and have a full time job, study thirty minutes during your break or commute. If you can afford to study one hour per day you’ll learn twice as much in the same amount of time. Follow this routine and in one year you’ll be far advanced from where you stand today. If you have more time, you will be able to absorb more knowledge faster. The more time you have and invest in trading, the quicker you can accumulate the knowledge you need to succeed. How long it takes depends entirely on how much time you’re willing and able to invest. Even the turtle finishes the race, as long as it starts it. What NOT to do: If you’re not ready to approach trading this way, you can test how lucky you are. Keep following the fantasy where you don’t need to put effort into reaching the end goal. Keep following people who promise you’ll become rich very quickly and in a simple way. Gurus make tons of money selling you a dream. They sell you magical tools, super profitable trading ideas, unique trading strategies and they reveal to you the «secrets» which will make you rich beyond your wildest dreams. Of course, all these things you will get after buying. You buy the dream, you pay for the illusion that tomorrow you will start a new life. You want to follow the simplest path which leads towards success. But in reality, this path leads to nothing. Are you lazy? To those of you who are lazy, you can follow them, those who entice you with the sweet and aromatic picture of your future life, where achieving your dreams won’t require any effort. When you join the 90% of losers from the financial market, don’t be surprised. You did nothing for something more. What did you expect? Which path will you choose? Ask yourself this question now, once and for all: Do you want to be a loser or do you want to be a winner? If you decide to become a successful trader, you must remember: Everything depends on you only! Believe in yourself and your capacity to work towards achieving your goal. Work hard towards making your dreams come true and: DO. NOT. QUIT! Good luck on this journey! In the following posts to come I will talk with you about: What you need for successful trading and how much work you need to become one of the 10% who succeed. If you enjoyed this post please support my work by pressing the like button, and leave a comment!!!
BITFINEX:BTCUSDEducation
by DLavrov
54
WHEN CAN YOU START TRADING FOR A LIVING?A user asked me an interesting question : "I’ve been studying trading for a while, I have good and bad days now but i am positive. I can feel my experience is growing and I like trading. I’m trying to figure out when I should start trading full-time. How much income should I expect to earn from trading?” Today’s topic: At what point can trading provide your full-time income? This is a very common and excellent question to ask yourself in order to define your trading goals. An overview of this lesson: 1. Prerequisites to trading for a living. 2. Capital requirements. 3. Getting this capital and how to manage it. 4. Conclusions and recommendations. Topic in focus: After acquiring knowledge and experience trading, you feel ready to take the next step towards financial freedom. When should you leave your job and start trading full-time? Beginning traders typically transition through a common cycle of experiences: Desire: Get rich quick. The beginning trader starts with little to no knowledge or experience. Reality: The beginning trader loses some or all of their starting capital (most of us have been here). Quit or Grit: Many beginning traders quit. Those who persevere with passion and motivation push forward. Structure: Continuous learning, testing, and gaining of experience. Confidence: Results confirm that you have the skills necessary to profit long-term. Question: Is it time to start trading for a living? How much monthly income can I reasonably expect to earn when trading for a living? How much starting capital would allow me to trade for a living? Let’s do the math: Talking about Forex or Crypto, Stocks or any other market, by utilizing a good trading system, money management, and emotional control, an average monthly profit target of 5-10% of your trading capital is achievable. Requisite trading capital: To understand when you can make a living from trading full-time, living expenses and tax/reporting laws should inform your monthly profit objectives. Let’s look at two simple scenarios: Regarding monthly living expenses, Trader A requires $1,000, while Trader B requires $5,000. With $1,000 in monthly living expenses, Trader A requires $10,000 – $20,000 trading capital. With $5,000 in monthly living expenses, Trader A requires $50,000 – $100,000 trading capital. Is this too much, or too little perhaps? Let’s examine this and explore solutions if you lack the requisite starting capital. How to increase your trading capital: With a focus on expectations vs. reality, psychology, common issues, and solutions, we examine two scenarios: 1. You don’t have the requisite starting capital but still expect to achieve your monthly profit objectives. 2. You do have the requisite starting capital and want to start trading full-time immediately. 1. You don’t have the requisite starting capital but still expect to achieve your monthly profit objectives. Expectations: You have $1000 – $5,000 and expect to make 100% profit monthly which you will use for living expenses. Reality: Stop. Get this out of your head. While you may be able to achieve such results one or more times, with such high risk it’s only a matter of time until your deposit drops to $0. Psychology: Unreasonably high expectations inevitably lead to failure and bad self-esteem at best, denial at worst. Without a high morale, you may well decide to quit trading when you’ve only just started down the road. Has this happened to you? Please mention it in the comments if you’d like. You’re not alone. Solution: Patience! If you don’t have the requisite starting capital this is not the time to leave your job, it’s time to accumulate. You must keep your income stable until you grow your capital to a point where 5-10% growth represents your monthly profit objectives. There’s more (very simple) math in the conclusion of this article regarding how long this will take so keep reading! 2. You do have the requisite starting capital and want to start trading full-time immediately. Expectations: Earn 5-10% of your trading capital per month. Reality: This is achieveable and sustainable BUT – you must be prepared for DRAWDOWN. What is drawdown? Drawdown is the unavoidable period when your capital diminishes because your strategies aren’t giving positive results. Problems: Every legitimate trading system/strategy has drawdown. Are you prepared for it? Growing your capital by 5-10% per month on average also includes months where you earn 1%, -5%, -10%. Even -20% is still a valid drawdown for any functional system. On the flipside, there will be months where you’ll surpass your monthly objectives and maybe earn 15% or 20% instead of 5%. Psychology: Are you prepared to see your starting capital decrease? These situations can induce volatile emotions and push you into making mistakes like panic trading. Remember that emotional control is an inextricable part of professional trading and this skill is honed with practice and patience. Solution: If you’re just making the transition to trading full-time and want to use all of your capital, consider backing up a bit. Pretend that you only have part of your trading capital, perhaps 25-50% of it. Use only an amount which will not impact you emotionally when you’re at a loss. Using this reduced starting capital, attempt to reach your monthly goal of a 5-10% increase. Use this time to train your emotional control and strategies. Patience will pay off here. By the time you reach your requisite starting capital you will have more experience, improved emotional control, and greater capital. Using this method will make everything easier. Conclusions and Recommendations: A stable 5% average growth will double your starting capital in 15 months. You would get to 10x your starting capital in 48 months – that’s 4 years. If it sounds like a lot think about this – in 4 years you will get your trading capital and a HUGE AMOUNT OF PRICELESS EXPERIENCE AND NEW KNOWLEDGE. Because over these 4 years you have been trading with a proper money management technique, you have learned multiple trading strategies, but also have gained a considerable amount of trading experience that will aid you in the future. How about an average of 10% growth? An average 10% monthly growth will double your starting capital in 7 months. A sustained 10% growth per month will allow you to make 10x in 25 months. That’s only 2 years. So, to keep it simple, with a targeted growth of 5-10% per month, it should take you 2-4 years until you reach the capital which will allow you to start trading for a living. Is this an exact estimation? NO! It depends on many things, but the main factor is yourself. You will have the time to learn about trading, create your trading plan, fine tune your strategies and train your emotions. You will face drawdown periods and your emotions will make you doubt your system. Again, money management is going to play a key role in your journey to your goal. For some people it will take less time, for others it will take more. It depends also on your available time, your dedication and even your natural abilities. For some it may be easier, others will need more training. But the ones who consistently use good trading practices will succeed. Recommendations. As usual, my personal creed is that you should focus on safe trading. This will allow you to reach your desired deposit size, even if it takes a little longer. Trying to make super profit will increase your risk, and increased risk is the path to liquidation – you’ll blow up your account eventually, it’s just a question of time. I notice that more and more people are losing patience and want to have results overnight – of course the crypto bull run has helped feed this type of thinking and it is no secret that I am very much against it – impatience and rushing into trading pushes you into making mistakes, taking bad trades, and panic trade without a clear plan. This can only lead to disappointments. And it does, I see it over and over again. I suggest that you follow 3 targets while building up your deposit which will allow you to make your living from trading alone: 1. Protect your deposit. 2. Earn stable income in the long run (5-10% per month). 3. If there is an opportunity to make extra profit, use it, but keep following proper money management. To make 100, 200, 300% per month, it’s not such a cool thing if the next month will get you to 0. But to make even 5% month by month, year by year is the path of a real professional. I have a few questions for you: Do you have a goal to trade for a living and be able to do it at your own pace? Do you think a 5-10% average growth per month is an achievable target? Would you be satisfied if in 2-4 years you would be able to trade for a living – or is it too slow for you? For those who trade stocks – do you think this is possible? Slower? Faster? Do you have anything to add to this post? Please share your answers in the comments!
BITSTAMP:BTCUSDEducation
by DLavrov
122
BTCUSD GANN 1D 3/25To square the above chart, drag the price scale down... How I square a chart from peak to low. Result: 1) Set Lines & Fib Time Zone (the middle line use the fib retracement tool, the .5 fib, then manually align a horizontal line) 2) Set Gann Square Fixed from center. To peak. it's not square... later step. 3) Set Gann Fans from each corner to opposite corner. peak to low/artificial corners created by horizontal and vertical lines. 4) Square The Chart. Line up the green and white X's (drag the time and price scales, fine tune in settings Price/Bar Ratio) If you sync your chart's drawling that have multiple time frames you can align each time frame to the same square. Your ratio changes depending on your res browser/ect. Same reason why this chart is not square after publishing.
COINBASE:BTCUSDEducation
by Mikelikescrypto
3
Don't you want to make money?It seems that market opportunities are everywhere. However, for this kind of profit under ideal conditions, it is just like the fuel consumption in the laboratory of a car. I often ask readers, what is the purpose of your speculation? Most people would say make money! Yes, you are here to make money, but after everyone enters the market, it is like the gambler who has played chicken, completely put this target behind him, in the 7*24 hours market, rest has become a waste of time, there will be fluctuations at any time, especially the people who do contract, see 1% rise and fall has been excited. Making money is not the point. But behind the madness, you may forget the law of things, money is not proportional to time. Boxing champion tyson is paid millions of dollars for a single appearance, often ko opponents in a round, so some people calculate his income in seconds; Farmers farm, a year dividends, and to see the day to eat. So there's no correlation between the time you spend and the benefits, so what are we doing every day in this market? Is the atmosphere, in our side, around a variety of people, every day in the community, listening to a variety of ancient legends, the grassroots overnight rich myth, let a lot of people think -- I can do it. This tension, this stimulation, this release of dopamine, makes it impossible for us to stay calm. As for the progress brought by science and technology, we can neither escape nor reverse it. However, it is undeniable that science and technology have changed our lives and brought about many negative problems. Social networks have been developing in a variety of controversies, and the emergence of WeChat subverts our traditional way of social communication. Last century 90 time, fry a stock to be in "sit in charge of" times, at that time mobile phone just entered the life of common people, "banker" it is the means that relies on word of mouth more, pass through large family room, retail retail hall, true true false news spreads go out; Of course, the main cattle, also through the formal media above the stock critics induced retail, zhao xiaoyun's most classic statement is that "baoding qingshan not relax." Nowadays, such local methods have been disrespected by young people. Developed social networks make it easy for "producers" to cut leeks, and fragmented reading also brings us the challenge of independent thinking. More people hope the analyst is direct some, do not listen to your logic, do not have time to listen to you give me lecture, tell me to buy or sell! Is this very realistic? Because of this demand, so "makers" to its good, using a variety of platforms, community, dissemination of information, and even let some big V platform, easy harvest leeks. It's true that there are some people who can make some money in this process, and their participation helps to facilitate the process. When you are encouraged to keep trading, do you see many people lose all their money? Having said all this, the point I want to make is this: in an extremely speculative market, it is crazy to be a pig in hot water, trying to maximize profits may not be a wise choice. Trading is not the whole market, and wait and see and wait, if you hope to earn every penny, just look at their own money bag enough big enough capital enough!
BITSTAMP:BTCUSDEducation
by peter-l