How to Trade Crypto: Technical Indicators
One of the biggest myths in trading is that there is a mysterious, secret, unknown trading strategy that calls every top and bottom and will make you rich over night. Stop. Believing. This. The people that are heavy into indicators are selling you something and most often, they are selling you enough rope to hang yourself. Every indicator can make you money depending on how you use it. Every indicator can bury your portfolio and bankrupt you depending on how you use it as well. So more important than what indicator to use, learn to trade the right coin, learn to keep position size small, and learn what to do when things go wrong. These are WAY more important than the indicator. Every single time.
All indicators do one of two things. The first strategy/style will give us a target or threshold where we will buy or sell. This is the same as putting a line in the sand where we will sell when we reach this number and buy when we reach that number. This strategy can be profitable, but the cons are that you limit profits or you lose out when a trend moves strongly in a single direction. The second strategy and my preference is to use trends. When a trend begins, we get in. When the trend runs out we exit. The cons here are that you miss every top and bottom. You also can get whipsawed and get faked out over and over. Both strategies can do well if you have the right backup plan and position size. It is getting too greedy and placing trades when you are bored or impatient that will kill you every time.
So hopefully you’ll stop getting sucked into overpriced classes, seminars, and exclusive groups in trading. Everyone is doing the same thing. The winners have discipline and correct risk management. The losers don’t. You don’t have to waste money on those. What I’m doing with Humbl is putting a profitable strategy on autopilot. If you are patient, it will most likely pay off. There is no secret sauce here, just good trade management.
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