First of all, I must say: I do not consider myself a professional trader and do not want to be one, but without the skills of buying and selling electronic assets, my activity is practically impossible. I'm mostly interested in developing for blockchain, however, for project development, testing and experimentation, you need to have different cryptocurrency that you should buy accordingly, and do it right. So, in parallel with development, I began to actively research the experience of traders in order to gain additional useful skills. As a systematic and consistent person, I took notes and analyzed what I heard and saw. Therefore, after 50+ lectures from another successful trader (this is an important clarification, because every third turned out to be a scammer and fraudster), I received enough data to systematize and generalize.
Of course, I do not claim to be an exclusive expert in the matter of trading, but I am just sharing with you the results of the analysis of information from people who know what they are talking about. From the first days of my acquaintance with IT as a student, I heard one phrase that is of great importance: "it doesn't work like that." And it concerned many processes and ideas: from the direction of IT-marketing, the combination of technologies, the flow of project development stages, and much more.
For example, there can be no quick sale in IT. As a salesperson, you can't just call the first best number and sell 100 hours of website development — that's not how it works. Several meetings, meetings, approvals and review of prototypes should take place beforehand. This is what prompted me to analyze the experience of traders and try to summarize how it works in the field of cryptocurrency trading. So now I offer you the five most frequently repeated statements about which experienced players on crypto exchanges:
You will get the most benefit from the simplest systems. Why do many people refuse to at least try themselves in trading? The answer is also extremely simple - they find it too difficult! Even more: they do not even try to understand the issue, because they do not believe in their possibility. And I partially understand them: have you seen how many and what tools various services offer to beginners? They are supposed to help newcomers, but in reality they only discourage them. Most professionals note that for successful trading, a regular course chart and data for a certain period of time, at least one month, is enough. Likewise with diagrams: you need to come up with a simple rule of thumb and follow it, rather than inventing a complex system with many variables or (even worse) unknowns.
Fibonacci was a really cool guy. This is a POV based on the frequent mention of the name of this Italian mathematician by successful traders. There is no point in talking about Fibo-tools now, since it is a subject for a whole scientific dissertation, but it is worth paying attention to the success of using Fibonacci levels in markets with a high level of volatility. The method has proven itself perfectly on the stock market, later on Forex, which is closer to the dawn of cryptocurrencies. Unfortunately, in order to use Fibo tools, you should have certain knowledge and an analytical mindset, without which it will be very difficult. After all, unlike many automated systems, here the trader has to independently determine which chart control points to choose for creating charts. Recommended key levels to watch are 0.5, 0.618 and 0.786.
Understanding market cycles is the key to sustainable success. One of my favorite findings, which almost every educated expert described with particular enthusiasm. Everyone gave bright and interesting examples, but the general point comes down to extremely simple things. A price drop is always an opportunity to get more assets. As some experts say, a low exchange rate always causes fear among asset owners. So don't be afraid to buy into the fear of others, it's always cheaper. Naturally, a high rate is euphoric, which also has a strong effect on people. For you, this is, first of all, an opportunity to make money when you need to sell accumulated fears. Yes, it sounds somehow very simple, but in fact, this is what all successful people say, just in different words.
The reason for all success or failure is the trader himself. Here I would like to combine two popular opinions at once:
○ The way out of any situation depends only on the decisions made by the trader himself. It does not matter what analytical services he uses or what algorithms he uses, it does not give any advantage in trading without determination and flexibility of the player's mind. Live actions in a specific situation mean more than any pattern;
○ Every trader must have a broad view of the world and its events in order to be able to correctly assess the situation. In other words, a trader must be able to find the reasons for rate fluctuations in events outside of the blockchain world in order to competently conduct his activities. And if he does not know how to do this or cannot, the reason for the loss is not in an external factor, but in the trader himself.
Everything is relative. No, Einstein was not a crypto trader and has nothing to do with blockchain at all. However, in the world of trading, there is no absolute value - everything is relative. No one can know exactly what the cryptocurrency exchange rate will be in the near future. Yes, everyone can make predictions, but it is impossible to be 100% sure. No one knows how much money he will make (or lose) this month: it is possible to make a guess, but it is only a probability, not a fact. Therefore, one cannot be absolutely sure of success in trading. This generalization turned out to be the most controversial, but all 50+ experts say it directly or metaphorically. After all, confidence breeds faith, which also breeds fanaticism. This is a dangerous phenomenon, because in such a state, a person is no longer in control of the process, but vice versa. This is how those people who are blinded by the confidence of winning (for example, in gambling), the genius of an invented trading strategy, and so on, lose millions.
Here, as it were, is the most important thing that I would like to share with you. I would be glad to read in the comments if you have also noticed such thoughts and statements from people you consider to be authorities in trading. As for myself, I'm listening to the results of my little research, although I still haven't mastered the Fibo-tools. But even this allows me to keep my crypto-portfolio at a sufficient level, pay all possible commissions in projects developed by me and my team, and even save for the future. I hope your success in trading will only improve!
