Is it Really Luck or Skill?
The answer might be obvious but if you take a closer look you might be surprised at what should be your winning strategy. Most people who are into trading would say, of course, skill after all you cannot just leave your hard-earned money to chances, Gambling is no different if you just leave to luck when you are trading.
But haven't you heard the popular expression "Better lucky than good"? There is some truth to it that's why a lot of people are using it. When you have the right attitude, good opportunities, and favor just come into your life. Profits that are sometimes hard to come to those who work hard are just but natural occurrences to some people.
Both can be better.
Why don't you get both? Most of us believe that skills can be acquired but not luck. On the contrary, maintaining the right belief system can be acquired. Having a good positive mental attitude will come naturally if you are hearing the right things in your mind. It is called a positive certain expectation for good to come, the right description for "hope".
Also if you have the right fundamental of educating yourself you tend to be "luckier". If you feel confident about your trading strategies because you studied it, you will have a positive expectation of the results. Luck and skills can be acquired with the right believing and the right hearing of fundamental principles about crypto trading.
Basic Skill. Read the Charts.
Speaking about basic fundamental principles, here are the basic concepts you need to learn when you are trading crypto.
1. Line Price Chart - line price charts are usually seen in two forms. The linear chart which just shows the price change in a given equal time period. This is the simplest way to see price changes in a given time. The log chart, however, shows the prices scaled according to percent changes.
You can say that with a linear chart you can get how quickly price changes while with the log chart you can see how the trend is going. Most experienced traders are checking both.
The Linear Chart
The Logarithmic Chart
2. Candle Stick Chart - This is the most popular chart. Not only you can see the prices you can also see the price change movement in a certain period of time.
The Caandlestick Chart
Here is what a candlestick looks like.
A candle consists of three parts: the upper tail, the lower tail, and the body. The upper tail indicates the highest price traded while the lower tail shows the lowest price. The body is colored green when it is bullish (price closes higher within that period) or colored red when it is bearish (price ends lower).
Here are some common candlestick price trends that you will see inside crypto trade exchanges:
3. Market Depth Chart - This is also an important chart you see. It basically shows the volume of demand and supply or the buy and sell positions. In the figure below, the green side shows a total number of coins that have buy orders at the current price, while the red side shows the number or amount of coins with sell orders at the current price. Where the two lines meet each other, represents the current market price.
Adding to this chart is the Order Book. Which is just shows the real-time buy and sell orders fulfilled in the said exchange. Buy side is seen in green while the sell side is in red.
So there it goes, the basic things you need to learn to be a lucky expert in the field of crypto trading. Happy trading!
I automate my crypto trading using the Trade Santa crypto trading bot. If you want to learn more, see my Trade Santa review here .
I have long gave up on cryptocurrency trading. the more I tried the more I lose
I understand where you coming from... in fact study shows most humans are bound to lose with day trading. That's why I use TradeSanta crypto trading bot.
I removed the fear and greed factor by making the bots trade for me, and I only use trading pairs that I know will be here for years to come like BTC-Hive. I just use my earnings here to earn Bitcoins with Bittrex . I set it up once, then check my profits once a week and that's it.
But just the same, I would understand if you quit crypto trading altogether. It is not for everyone. Have a blessed day. :)
@arnel how true is this trading bot and is it free. I want to join. If I start trading with $10 using this bot, in the next one month, what will be my profit?
It is available in a free trial, up to 2 bots, and up to $3000 transaction limit in a month. Your profit depends on your strategy, much the same when you trade yourself in trade exchanges. The advantage is you automate the process, you do not have to deal with your emotions. Every time the bot recognizes a condition that meets your criteria or settings, it will transact the trade.
If you want you can copy my trade settings. I trade using Bittrex . My bot settings are: DCA bot, Sell strategy, trading pair BTC-Hive, 0.75% Take Profit, Bollinger Signal on, 50% Percentage of Deposit with 1 extra order, step of extra order is 1%.
No guarantee but my previous months' performance is on an average of 10 to 20% per month net profit.