The Great Opportunities

Currently there are over 700 cryptocurrencies traded on the market. Since Bitcoin introduction in 2009, there have been thousands of other projects that used similar ideas as Bitcoin.

Cryptocurrencies are public for anyone to join trading. Some of the larger ones are also traded against government backed currencies like USD and EUR.

There are many ways to benefit from crypto trading, the main one is similar to a traditional Forex trading. Bitcoin, Ethereum, Litecoin, Peercoin and other crypto currencies have great potential for investment and speculation, due to their high volatility.

Fundamental Trading - Trading the News

Overview

Fundamental Trading – Trading the price movements caused by fundamental news

Trading the news, then, should be an integral component of your investing strategy. Learning to trade the news is an essential skill for astute portfolio management and long-term performance. News can be divided into two categories:

Expected

News that is issued in a specific scheduled timing. For example, interest rate announcements by the central banks, economic data releases such as Unemployment rates and quarterly earnings reports from companies.

Unexpected

Sudden geopolitical events, natural disasters, terror attacks, threat of debt default by an indebted nation. Unexpected news is unlikely to be favorable.

Technical Trading – Analysis

Overview

Technical Analysis is the forecasting of future price movements based on an analyzation of past price movements. Technical analysis can advise traders predict what is most likely to happen to prices of the asset over time. Technical analysis uses a large variety of mathematical tools that show price over time using a variety of technical indicators.

Trend is your Friend

Overview

The idea of a trend is the most important idea in technical analysis. The meaning is as the general definition of the term – a trend the direction in which the asset is headed. Prices move in a series of highs and lows over time and it’s not easy to spot because prices almost never move in straight lines. Most trends considered to be short-term or long-term. Long term trend appears over a timescale of longer than one quarter. Short term trend appears over less than one month. It is important to understand the trend so that you can trade with it. Most important sentence in technical analysis is “the trend is your friend”, describing how important trend is for technical analysis.

Support and Resistance

Overview

Simple chart analysis can help identify support and resistance levels. These are usually trading range where the rate moves within a range for a certain period. When the rate moves out of the trading range, it indicates that the supply or the demand has started to influence the market. If the rate moves above the upper line of the trading range, then demand is winning. If the rate is moving under the lower line, then supply is winning.

Supply, Demand and Price Action

Overview

Most of technical traders use the open, high / low and close when analyzing the price action of a security. There is information in every bit of information. Separately, these will not be able to tell much. By taken together, the open, high / low reflect influence of supply and demand.

Crypto Scalping

Overview

Scalping is a popular method involving the quick opening and closing of the trade. Market exposure of a scalper is shorter than trend follower. Trades opened by the scalper are usually small but great profits are made by many closed small positions. Scalpers will try and scalp 10 to 50 pips on each trade and repeats this process over and over throughout the day. Using leverage and making trades with just a few pips profit at a time builds up, especially if the trades are profitable and can be repeated many times over and over.

Hedging Insurance

Overview

Know the Event Calendar in advance. Know your trading entry and exit points before the movement begins. Make rational investment decisions based on your risk tolerance and trading targets. Do not be tempted of making fast cash by taking irrational trades. Trading the news is necessary for positioning your portfolio to take advantage of market moves.