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RE: Trade like a profesional, with no emotions + building small accounts

in #trading7 years ago

I reviewed 6 months of data before choosing the base at .078, I posted a more zoomed in chart only because I thought it would better express the post - we are on the same page. My base was initially at .081, but I revised the base to .078. Why would you choose the higher base, rather than the more conservative .078? I suspect there will be a good lesson to be learned for me in your response.

Can you go into greater detail about reviewing the gains or losses of coin pairings prior to placing trades? I intended to layer in and buy more as it approached the bottom, but I got gunshy - I wanted to wait until I understood the cause and effect of ETH skyrocketing so quickly, and ETC dropping like a rock before I placed any additional trades. So many opportunities yesterday to trade on ETH coin pairings, but without this understanding I felt it was best to sit out until I better understand why ETH's rise is affecting coin prices and how best to take advantage of it with my trades.

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I choose my bases by the bounce they recieve.. ETC bounced from 81ish to 96.. the 78 you are refering to had no bounce (on the Bittrex chart) so it doesnt qualify as an area where buyers were willing to move in on the price and buy...
As far as your question on coin pairings.. Everything relates to eachother in the market.. So lets say ETC is paired with ETH... but ETC is also paired with BTC.. if BTC stays constant but ETH falls in value on the ETH/BTC pair, then what happens to ETC/ETH pair.. because all three are paired against each other..But its only ETH thats falling.. so should ETC lose BTC value? Or should ETC/BTC stay the same but ETC/ETH go up, since ETH is going down.. its pretty complicated to think about, but each coin in a pair effects the other pair relationships.. So basically if one coin is having a big move, in relation to BTC then you can expect other coins to react that are connected in pairing.. And i know that doesnt give you an exact answer but there really is no metric for this, because its not like the stock market, where there is one base currency, its like forex, where pairs are effected by other pairs.. Thats why its always best to trade the chart, and not let things get too overly complicated.