hey everyone,
im sure many of you are hoping to get into crypto trading.
for a beginner I know that it might seem too complicated, with too many variables but truth is, that couldn't be farther from the truth.
as someone who's been in the trading scene since 2019, i have made a decent amount of experience, both from wins and losses.
🧵i put together this short thread to help steer you along your first steps, and help clear any information pollution that you might've come across 👇
1.CHANGE YOUR MINDSET
your priority should always be to protect your investment, not to profit.
you are in a market where you make money by risking money, and practising good risk management is key.
if you are new to this, you won't get rich in 1 year, so always focus on cumulative growth. don't be greedy.
remember that you are just a small fish in the market. be strategic with your plays, you need and trade like smart money.
2.PRICE ACTION
there are many ways to understand and interpret price:
➡️ Smart Money Concepts
➡️ Elliot Waves
➡️ Candle closes
➡️ On-chain datas (OI-CVD-Funding Rates etc)
➡️ Formations
➡️ Trend lines
believe me, if you're making money it doesn't matter which one you use.
i know many people who make money just by trading news or with candle strategy.
if you are a crypto trader, there is a lot of data you need to follow, learn the basics, then find the one that makes the most sense for you and use it.
3.ROOKIE MISTAKES
➡️" it pumped too much, i should short it / it dumped too much, i should go long ''
(MM is smarter than you think, in these cases the reason for the price increase most of the time is because there are many ppl opening position in the same direction.stay away from this idea and never open a trade without confirmation)
➡️‘’ im waiting for bottom/top ‘’
(you are not Smart Money, even if you do this it will be by chance. i repeat, wait for confirmation)
➡️‘’ shit, it's pumping/dumping I should chase it. ‘’
(entering a position in the middle with FOMO can make things more difficult. stick to your plan)
➡️'' my SL hit, i will long/short it again, i need to win back that money straight away ''
(admit that your analysis is wrong and move on. emotionality detracts from professionalism. dont do revenge trade)
4.RISK MANAGEMENT
opening a trade without using stop-loss = gambling
always calculate the amount you will lose before entering a position. no matter what your stop % is, the money you lose should always be the same:
money you lose on a position should not exceed 2% of your port. (for futures)
( learn ‘’R system’’ )
(so your position size is always variable, dont go big!)
5.PSYCHOLOGY MANAGEMENT
if you ask me, charts are a bit of human psychology.
if you can't stay calm during the position, you probably haven't managed your risk, so make sure you manage it first. ( Someone who knows how much money he/she will lose in a trade does not stress)
make sure you do your analysis beforehand, do not enter into the position based on momentary emotions.
sometimes we can participate in position with "market buy", even in these cases, be sure to find a logical point on the chart where you can place a stop.
6.BACKTEST & PAPER TRADING
the most important thing that will contribute to your development.
if you are new, do not rush to open a trade. you should definitely test the strategies you think are suitable for you. do back-testing until you are convinced that this strategy works.
for this, you can use the paper trading tool or long/short tool in tradingview.
7.EXAMINE IMPORTANT PAIRS BEFORE ENTERING A TRADE
opening a trade by looking at just one chart can sometimes mislead you. you should check the pairs where you can get an idea about the direction of the market:
➡️ BTC ( Pathfinder )
➡️ ETH ( Biggest altcoin, fathers other altcoins )
➡️ ETH/BTC ( ETH's strength against btc – important for altcoins )
➡️ BTC.D ( BTC dominance )
➡️ TOTAL = Market cap of all cryptocurrencies combined
➡️ TOTAL2 = Market cap of all cryptocurrencies ex BTC
➡️ TOTAL3 = Market cap of all cryptocurrencies ex BTC & ETH
👉TOTAL3-BTC.D combination is great for altcoins for example.
8.REDUCE THE NOISE
stay away from the people who think that every 3% pump is proof that "bull started🚀", that every 3% dump is a ‘’ buying opportunity ‘’, who never change their bias, and who never share their losses.
