I have added points you need to keep in mind while making your own system.
Let this be a guideline.
-One indicator can be complex for someone and easy for another.
-Pay special attention to point 4.
-I hope you enjoy the Round guy cartoons.
1. The illusion of complex analysis.
Most people who made the most amount of money in Crypto are probably who didn't think too much and bought Bitcoin and didn't think about anything..
Forgot to follow the Development or price movement. Just bought early and slept.
Crypto is a complex asset class but your analysis doesn't have to be. A ground level understanding of tokenomics is some times enough to understand the future of the token.
The revenue generation aspects and usage analysis can be easily read from third parties.
Find sources of info and stick to the basics.
If you don't have a vast experience as a dev or Crypto, sticking to basics will help you.
I know trades on the P&L leader board who got these just swing trading with Market Structure, S/R and learning a Bit of economics.
Be simple.
2. Myth- More data is more control.
Beginners buy the TradingView Premium pack and put every indicator they can find on the chart.
This gives them a sense of more data, more visuals and more control of the market.
You're essentially adding more perspectives which is saying the same thing in different ways and saying a bunch of nothing.
If you can't simplify your system at least in the beginning, you'll have a bad execution.
Remember, trading depends on execution and not analysis.
Ask yourself what exactly you need this indicator or data.
What is it exactly that it shows and what can you use it for effectively.
If you don't completely understand the above about a tool, you need to study it more or probably get rid of it.
3. High concentration on recent events.
Just because something has been working right in the current event, doesn't mean it'll work forever.
Just because something didn't work for a time in the past, doesn't mean it'll not work now.
Paying too much concentration on what works in the short term and using it as a long term rule will kill you.
Eg. During De-Fi session, everything that pretended to be a Defi pumped. This was momentary. If you continue this as your investment thesis forever, you'll get burnt
4. Risky management can't make you money but makes sure you won't lose it.
I know a friend who made 2100% profit in Bitcoin Trading on Bitfinex and then lost it all all in December 2017.
It takes one bad trade to lose it all
He thought the price could never dip to 13K from 19K.
Kept on using the profits to add more leverage.
All his portfolio was in Bitcoin leverage.
How could Bitcoin crash so much he thought?
And hence lost it all.
I am pretty sure a lot of you have thought, if I keep my liquidation very low, nothing can happen.
And risked all your positions and still lost money.
Remember, you hear stories of people making millions of dollars in the market. Where do you think that money comes from?
A thousand people lose a thousand dollar each to help one guy make a million.
Don't be a Market participant who works hard to transfer all his money to someone else. People are working hard to take your money. That's how profit is made. Don't let that happen.
Better cautious than Sorry.
Conclusion.
1. More data isn't better necessarily.
2. Ask yourself why you need that data for. Unless it helps you specifically, you don't need it.
3. The market is smarter than you and looking to take your money. It always has it always be. Protect it.
4. Evolve or die.
I hope this has given you an insight into what needs to be done.
If it feels to complex, leave it. Find a good source or news and not signals.
Will see you guys soon.
Please send some love. I need it today, like always.
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A Mega Thread for All Major Altcoins and how to trade them.
Book Mark and Study for your trades.
BNB
Since our last update, we flipped the 0.0093 resistance level, now forming a new range
Expecting a small range against BTC here before continuation higher.
Suggestion - Hold on to bottom entries if you bought with me around $500.
SOL
Tricky situation, if we hold range high we just flipped, I expect to reach $170 soon
Bidding region would be under $135 sweep based on BTC chart.
1. Visible Range OI Delta Profile on @coinalyzetool
Shows where traders are entering and exiting. Use this like VPVR.
Use this indicator on LTF to identify trading levels in a trending market.
In range, use this to scalp on either side as target when price deviates.
2. Aggregate OI:
Having net open interest across all trading pairs is very useful.
Sometimes, one exchange will market enter large long positions while there is no action or selling action on other exchange. This filters out misinterpretation of that data to a large extent.
Understanding some trading Analysis can be difficult because of Complicated Terms.
Must Know Trading Principles and Terms for Trading and Analysis.
A Thread.
P. S. I will keep Updating this List.
This is the thread of most important trading Concepts and Terminologies you should know to Understand and do your own Analysis.
Consider it the language of trading.
I have added links to important tutorials along side Explanation.
1. MSB - Market Structure Break.
Break of Lower Low formed in Previous impulse = Bearish MSB.
If Lower Low is Broken, consider it a Bearish MSB.
Remember, Lower High formation isn't a MSB, but Lower Low Break =MSB.