DISCLAIMER: I'M NOT SELLING ANYTHING, SPECTRO is sold out and unfortunately it will never be sold again - this is merely for educational purposes.
As you can see trading bitcoin has been pretty easy for Spectro users, I forecasted another trade that went very successful that you can see in this chart and it was published as well before it happened - just check my profile. I'm using consistently the same strategy again and again. When it gets boring it means you're probably getting it right.
However the goal is not to focus on my trading setup, but the LOGIC behind it.
First things first:
FIRST, I do not like and I STRONGLY disagree with beginners doing:
DAYTRADING, SCALPING, LEVERAGE and or anything like that.
I work professionally with this for 10 years now, make a living from this and I'm recommending day trading at any resolution smaller than D for a person who has not yet being profitable consistently for over one year. So I used this resolution because it's what I used and it fits the bill for what I'm explaining.
Why did I say this first? Because fast frequency of trading means more commissions, means more odds against you, especially when you have a sucky precision and no systematic approach. If you do not understand that a 1% edge will make you rich, so I suggest understanding basics of statistics before trading.
SECOND, I use Spectro, something I worked years on, but it can be easily replaced with many amazing tools out there, the point is: USE A REPEATABLE FORMULA THAT HAS NO SPACE FOR ANY HUMAN INTERPRETATION, GUESSING OR OPINION. The more you use it, more holes you find and fix, more robust your system becomes - so TAKE NOTES.
THIRD, before getting in an out understand what you will always lose no matter what: COMMISSIONS. Investigate if there's enough range even if you get the trade wrong to trade it profitably.
FOURTH, understand the relation of Risk:Reward ratio, which can be calculate previously, with Precision. Bigger RR, smaller precision needed for profit. In plain english, if you are beginning that means you suck, so stick with the 3-5x+ stuff. That means if you get one out of 3, 4 or 5 right , it will pay for your learning.
FIFTH, NEVER EVER GO ALL-IN, not with 100% of your capital in one trade, and not 100% of the allocated capital for a given trade in just one single entry point. There are models that will help you with portfolio position sizing like KELLY CRITERION - which will tell you what's the % of your portfolio you should allocate to a given trade. And then within a given trade you can use Martingale, to average out your entry - so if you get a bad entry, you still have more shots, thus a better average entry price. Just make sure to use it in your favor, so never use more than the correct amount of allocated capital. PLUS: If you ever get big enough, forget about trading in a given spot, you will always trade in ranges. You don't get in and out exactly at the same price - trade a very small altcoin and you will understand proportionally what I'm talking about. Get used with ranges not spot.
As you can see trading bitcoin has been pretty easy for Spectro users, I forecasted another trade that went very successful that you can see in this chart and it was published as well before it happened - just check my profile. I'm using consistently the same strategy again and again. When it gets boring it means you're probably getting it right.
However the goal is not to focus on my trading setup, but the LOGIC behind it.
First things first:
FIRST, I do not like and I STRONGLY disagree with beginners doing:
DAYTRADING, SCALPING, LEVERAGE and or anything like that.
I work professionally with this for 10 years now, make a living from this and I'm recommending day trading at any resolution smaller than D for a person who has not yet being profitable consistently for over one year. So I used this resolution because it's what I used and it fits the bill for what I'm explaining.
Why did I say this first? Because fast frequency of trading means more commissions, means more odds against you, especially when you have a sucky precision and no systematic approach. If you do not understand that a 1% edge will make you rich, so I suggest understanding basics of statistics before trading.
SECOND, I use Spectro, something I worked years on, but it can be easily replaced with many amazing tools out there, the point is: USE A REPEATABLE FORMULA THAT HAS NO SPACE FOR ANY HUMAN INTERPRETATION, GUESSING OR OPINION. The more you use it, more holes you find and fix, more robust your system becomes - so TAKE NOTES.
THIRD, before getting in an out understand what you will always lose no matter what: COMMISSIONS. Investigate if there's enough range even if you get the trade wrong to trade it profitably.
FOURTH, understand the relation of Risk:Reward ratio, which can be calculate previously, with Precision. Bigger RR, smaller precision needed for profit. In plain english, if you are beginning that means you suck, so stick with the 3-5x+ stuff. That means if you get one out of 3, 4 or 5 right , it will pay for your learning.
FIFTH, NEVER EVER GO ALL-IN, not with 100% of your capital in one trade, and not 100% of the allocated capital for a given trade in just one single entry point. There are models that will help you with portfolio position sizing like KELLY CRITERION - which will tell you what's the % of your portfolio you should allocate to a given trade. And then within a given trade you can use Martingale, to average out your entry - so if you get a bad entry, you still have more shots, thus a better average entry price. Just make sure to use it in your favor, so never use more than the correct amount of allocated capital. PLUS: If you ever get big enough, forget about trading in a given spot, you will always trade in ranges. You don't get in and out exactly at the same price - trade a very small altcoin and you will understand proportionally what I'm talking about. Get used with ranges not spot.
WRONG LINE: "I'm recommending day trading at any resolution smaller:
I AM NOT RECOMMENDING this was a mistake.