Day crypto trading is a very time-consuming endeavor. You need to constantly monitor the markets and be ready to take action when needed.
Before you start crypto trading, it is crucial that you set the right expectations for what your time commitment will be in order to trade successfully.
One of the many tricks to using a crypto trading journal is to spend enough time at your computer each day for 6-7 hours. This includes constantly opening and closing positions and regularly checking in on the markets.
However, most people are choosing to trade different option as people are not giving enough time.
For traders who monitor the market on a daily basis, they might need to inspect all the news in addition to any charts before position opening or closing decisions can be made.
Some tips and options trader choose for day and long-term trading
The number one option any trader choose is to set aside one specific day of the week that you will always be there.
Metrics checking and evaluate your portfolio and see how each of your currencies have grown – or declined and analyze the scenario.
Monitor daily news and media channel to update.
When deciding on which assets to buy or sell, consider any prospects for the asset in question and the diversity of your portfolio. If an asset has decreased in value it might be a good idea to close its position.
If you see anything promising or in a state of discount, buy it. You should carry this out every day of the week you chose to trade.
Basically people choose two types of crypto trading method:
- Daily monitoring with limit sell orders,
- Monitoring once a week.
Role of Over the counter(OTC) in crypto trading
Over-the-counter is a decentralized market without a central physical location where different people can trade assets.
This type of trading is done directly between two parties or via a dealer. OTC trades are usually done with large sums of money and often involve difficult-to-trade securities such as distressed assets.
The best example is, if you don’t have time to follow the market to trade properly, you can rely on the service plan and cooperation will be done by mobile phone or email.
So you tell a dealer that you want to buy 250 altcoins. The dealer is going to give you a quote based on what the bitcoin price is right now, and may charge an additional fee for doing conversions with other cryptocurrencies.
Analyzing chart patterns in for Day and Long-Term Trading
It’s common to believe that a natural talent for trading is essential for success on any exchange. But people are learning and misguided in a wrong way to make money.
To become successful trader you need to learn about the market situation and understand what drives its movements
Reading the charts is a skill that takes time and practice to develop but will allow you to make the right trading decisions when it comes to cryptocurrencies.
The two common chart patterns are line charts and Japanese candlestick charts.
Comparison between line charts and Japanese candlestick charts
Here is a comparison of different types of charts and how they work. Line graphs work great for medium-term trades as they ignore the min and max indicators that are taken into account in Japanese candlesticks charts.
Japanese candlesticks are one of the most widely used ways of trading stocks. They’re very straightforward and the data is crystal-clear, which traders find perfect for their needs. Traders also enjoy using them over line charts because they can be more useful in decision-making when trading stocks.
Converting candlestick charts to line charts can help traders see the larger picture of the market and forecast its price movements in advance. However, many newbies prefer trading with candlestick charts because they are easier to read.
An even more important factor, if you’re going to be making long or medium-term investments. Each chart has its own time frame, for example the one hour, one day and one week periods on Japanese candlestick charts.
Candlesticks are made up of the body (rectangle), the opening and closing trading prices (wicks) and upper and lower shadows (halves). The body of the candlestick displays where people bought and sold, while the wick represents the highest or lowest trading price for that day.
You can see the opening and closing prices, both of which are highlighted in different colors. If the opening price is below the closing price, it roughly means growth and is typically represented on a chart with a different color. If everything else is vice versa.
Duration of time frame and analysis in crypto trading
The 1-hour chart is the smallest one you can with. Additionally, it’s a good idea to see a weekly and 1-month chart as the cryptocurrency market is quite young. This will allow you to identify historical trading ranges per currency pair and also be able to anticipate future highs and lows.
Many people believe that technical analysis can be used as a way to predict what the market will do next. There are many different indicators such as support, resistance, and trendlines that traders use to make investment decisions.
Charts can be a great marketing tool and they can be used to specifically push customers to take certain actions. They are a great way to highlight changes in the maximum price, and people often buy more when they see round numbers.
I also notice that all people react to recurring events. For example, once something has reached a peak, people hope they will be able to break this peak again and go even higher. However, the real estate market is much different than the cryptocurrency market.
This trend isn’t new. The market is constantly being updated with fresh content, and this leads to peaks in demand for different items.
This is why we see so many peaks and troughs when it comes to the price of certain items. This can be seen as an issue with supply and demand, with items in short supply seeing higher prices for a period of time before the price will fall back down again.
We also see this happening at least twice a day during the morning and evening peaks, as well as periods when prices are doubled or tripled for a certain item that is in high demand.
Attention seeker and analysis in volatile market
When the market is turbulent, traders often examine a moving average to gauge how things are going. A moving average is largely the median price. When examining charts, you’ll usually need an idea of what the ‘average’ feels like.
This is a useful way to look at charts which could be applied to different types of charts for example, I might use a 50-day or 200-day moving average for daily charts. 20-day moving averages can also be used.
The most important thing to be looked at is volume. The number of transactions seen over a certain period show the trend. The candlestick chart tracks the number of entries and exits that happened during day trading, giving you an idea of how traders are behaving on that particular day.
The volume of a market should always be taken into account. It is shown as the sum of how much you bought and sold. This means that you can always tell how liquid the asset is, which will determine whether your position can be increased or not.
There are two things that any trader must have in order to understand the market and its direction: volume and price.
This is a good sign because it demonstrates that more participants are coming to the market. So if there are strong movements either toward reaching a tall order or finding strength at a new low, this will be accompanied by buying and selling from others in the stock.
Additionally, it’s important to have a volume spike in order for the movement to start. You’ll usually see this near the end of a given run-up. For example, after the price of a coin has continued to grow steadily, you might see that there’s suddenly increased volume with no movement yet on that coin. This is often an excellent opportunity to take some profit.
Changing your strategy based on what is happening can sometimes lead to big wins. Keep an eye out for indicators that may show when it’s time to switch gears, otherwise you might miss out on the opportunity.
For example, if a downtrend starts to happen but the volume is increasing at a much higher rate in comparison, you might want to wait for a price spike.