Why I'm here?
I stated in my introductory post that I came to steemit to learn about crypto currencies. I have been trading for over ten years now, mostly forex, and wanted to slowly move into the crypto markets. Well I've been reading, listening and generally learning a lot since I got here.
What I've learned
Although everyone talks about "trading crypos", my view is that the markets are too light to trade safely. By that I mean, there is not enough liquidity in the crypto markets, ie not enough people buying and selling. What everyone refers to as trading is actually speculation. This is fine as long as you are prepared to wait for the longer haul. Active day traders don't actually want their capital tied up for more than a few days at most. I will talk about all this in a later post.
Applying my forex method to cryptos
For now I want to give a heads up on what I am seeing in the crypto charts. Here I am applying my successful forex trading methods to the crypto markets, to see how it holds up. It may turn out though, that I will need to develop a completely new trading plan.
Bitcoin
I believe bitcoin to be the current leader in the market, and so whatever moves it makes, the other coins should loosely follow, similar to the US dollar in the fiat world.
In the chart below I have indicated the level at which I will be looking to buy coins, as if bitcoin bounces here the others should more or less follow suit. Now bitcoin could actually bounce from where it is right now on the chart, but if it does I will miss my entry this time as I am waiting on the lower level.
Patience
There will always be entry levels, but you just have to develop the patience to wait on YOUR level. Sure it will mean that you will miss opportunities but that is just how trading is. Patience, patience, patience.
Disclaimer
I am not a financial advisor, and I am not responsible for any losses you may incur as a result of acting on any of the content contained in this article. I make no recommendations to buy or sell, and this post is purely for information and education purposes. Opinions expressed in this post are my own, and you should seek advice from a professional financial adviser.