Learn some basic technical analysis (TA) and terminology. <\/span><\/p>\n<\/li>\n<\/ol>\nThe best way to feel out of place in a new environment? Not knowing what\u2019s being discussed. <\/span><\/p>\nTechnical analysis can be frustrating, not knowing why a certain coin trended one way or another can make you place bad trades. <\/span><\/p>\n\n- \n
The first thing we need to look at are candles and what information they provide you. <\/span><\/p>\n<\/li>\n<\/ul>\nCandles will form patterns, which will aid you in establishing the trend (bullish, up trends, bearish, down trends)<\/span><\/p>\nHere are some of the most popular examples.<\/span><\/p>\n![\"\"](\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2022\/10\/candledata.png\")
<\/span><\/p>\n![\"\"](\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2022\/10\/candlepattern3.jpg\")
Pattern examples 1, note there is a set of patterns that will help spot trend reversals.<\/p>\n
![\"\"](\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2022\/10\/candlepattern2.png\")
Candle pattern examples 2, note the last 3 patterns, the trend could go either way.<\/p>\n
![\"\"](\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2022\/10\/candlepatterns1.jpg\")
These patterns are very helpful, especially the engulfing candles.<\/p>\n
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Next we want to understand about support and resistance levels (S&R). These are key areas on charts where historical data shows <\/span>what is known as Confluence.<\/span><\/p>\nSupport is a price point below the current market price that indicate buying interest. Resistance is a price point above the current market price that indicate selling interest. To identify S&R, place a horizontal line in such a way that it connects at least 3 price action zones, well-spaced in time.<\/span><\/span><\/span><\/p>\n![\"\"](\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2022\/10\/2b594900359d0743ceb9b10161b302f0-1.jpg\")
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Get Trading View. Its probably the most used tool by traders.<\/span><\/p>\n<\/li>\n<\/ol>\n\n\u201cWhat’s TradingView? We’re a charting platform and social network used by 30M+ traders and investors worldwide to spot opportunities across global markets.\u201d<\/span><\/em><\/p>\n<\/blockquote>\n\n- \n
Get a DEX account (Decentralised Exchange). <\/span><\/p>\nThis will allow you to buy and sell tokens. It should be noted that different DEX will list different tokens, sometimes you will need to use more than one. In addition, a DEX is NOT the same as a wallet!<\/span><\/p>\n<\/li>\n- \n
Indicators, which to choose and how to understand them. <\/span><\/p>\n<\/li>\n<\/ol>\nThis is a personal choice. Some of the standard indicators will serve you well, like RSI, MACD, VOL\u2026 they are easy to read and it does exactly what it says on the tin! <\/span><\/p>\nYou may find yourself trying out different ways of trading, this is where modified indicators can be a game changer! The Stochastic RSI on Trading View is very popular, used by many top traders and influencers on youtube. <\/span><\/p>\n\n- \n
Risk Management.<\/span><\/p>\n<\/li>\n<\/ol>\nLosses are reduced with the use of risk management. Additionally, it can prevent traders’ accounts from losing all of their funds. The risk arises when traders incur losses, so traders have the potential to profit on the market if they can control their risk.<\/span><\/p>\nIt is a crucial but sometimes disregarded need for effective active trading. After all, without a sound risk management plan, a trader who has made substantial profits might lose it all in only one or two disastrous deals. So how do you create the ideal methods to reduce market risks?<\/p>\n
“Plan the trade and trade the plan<\/em>.” Planning ahead can often mean the difference between success and failure.<\/span> <\/span><\/span><\/p>\nTake-profit (T\/P) and stop-loss (S\/L) points are two important methods that traders may plan ahead while trading. Successful traders are aware of the prices they are willing to buy and sell items for. They may then compare the resultant returns to the likelihood that the stock will achieve their objectives. They close the deal if the adjusted return is high enough.<\/span><\/p>\nOn the other hand, failed traders frequently start a transaction with no concept of the points at which they would sell for a profit or a loss. Emotions start to take over and direct their transactions, just like lucky\u2014or unlucky\u2014streak gamblers. People frequently cling onto losses in the hopes of recovering their money, while gains might tempt traders to act recklessly.<\/p>\n