Hello friends, I want to share this small instruction manual for beginners like me who want to start trading with little money.
Based on my short experience, I have already obtained some results, and that is why I want to share it with those who wish to venture into this fascinating world.
1. Have a minimum capital of 20 or 30 dollars to start; it is difficult to begin with such a low capital, but it is possible.
2. Look at the list of losing coins of the day; those that show the highest percentage of loss can give us a good profit in the following days. It may seem absurd, right? But it is not; these coins theoretically will rise in price again trying to reach their previous level and even surpass it.
It is important to buy at the end of the downtrend. (check the 4-hour chart to see what trend the coin has)
3. Try to buy at the minimum price in 24 hours or as close as possible because this is its support. (use the 5-minute chart) I do not mean that the coin will not drop from there (sometimes it drops a little or a lot). The detail is that if you do not buy at that low point, your profit will be less. Another detail, if it drops a little, it will be easier and quicker for you to recover.
4. Enable the Rsi indicator, and when you notice it is at its lowest value, it is time to buy.
5. Monitor the coin when it starts to rise; if you see the Rsi indicator above 70 (or it is very high), it is time to sell. You should keep an eye on whether it has reached its previous maximum or is close. If it eventually rises above its last maximum value of 24 hours, the decision is yours to sell it or let it keep rising. You can use the Macd indicator, and when the lines cross signaling a drop, sell.
6. Have a lot of patience and discipline, and do not be scared if it drops a lot; it is normal, coins go up and down all the time.
7. Do not chase coins; if you see a coin rising very quickly, do not try to buy it; it is most likely that you will lose money in seconds because sometimes it reverses and goes down (learn to wait for your opportunity), which is at the lowest price.
8. Do not change coins impulsively; if you have set a plan with a coin, stick to it for as long as necessary. Read opinions and news from users and follow advice from more experienced users. Remember that many are like you and me. Also, do not let yourself be influenced by silly comments; many are here wasting their time and money, and instead of teaching something, they make foolish comments that can harm our plan.
9. Do not buy bitcoin or high-value coins with a little capital, because you will not make profits; look for trending coins or memecoins (many say they are garbage, but thanks to that garbage, capital starts to grow) in this way you will gradually build your small capital.
10. Look for low-cap coins, as these are the ones that fluctuate the most.
11. Study the Rsi and Macd indicators or all the ones you consider necessary.
12. Study Japanese candlestick patterns.
13. Download the TradingView app, use a 4-hour chart, and start marking trend lines. Ideally, buy at the end of a downtrend, just when it transitions from downtrend to uptrend.
14. Observe the Bollinger Bands indicator; when you see the bands very narrow, it is probably a good time to buy.
15. Set alerts in your Binance app and program them correctly by placing Support and Resistance; this way you will know when to buy, sell, or hold.
If you follow these tips, you will likely minimize your losses to a good extent.
These tips are not a financial manual or investment advice; seek advice, study, and watch videos on YouTube to continue growing your knowledge. Success stories require a lot of time and effort, and you can write yours.
$BTC