Jul 31, · Swing trading is a very popular trading approach for digital currency traders as the price of bitcoin and other digital assets regularly show sharp price swings over the course of a week. These price swings enable traders to generate a profit if they manage to catch the right entry and exit points. Swing trading is a short term, trend following trading technique which focuses on the local highs and lows of the market. The basic idea is to buy if the market breaks above it’s previous local high. After you are in position you would place a stop on the previous low . Apr 14, · Swing Trading Bitcoin – Kevin Svenson allcryptocoins.de captainsidd allcryptocoins.de April 14, April 14, What is allcryptocoins.de? The allcryptocoins.de series goes inside the minds of traders to learn their strategies, preferred tools, habits and mindsets for .
Swing trading bitcoinBitcoin Swing Trading - Quantitative Analysis and Trading
What tools and exchanges do you use to analyze, chart, and execute trades in the crypto markets? I have been exclusively using Cryptowatch since to analyze the crypto market and all crypto assets. Cryptowatch has been a fundamental part of my journey throughout my career in crypto. It fits my personal taste from the layout to the depth of the featureset.
I find the SMS alerts convenient for when I leave the house, and I can buy and sell from the Cryptowatch interface without having to log in to my exchange accounts. Even though this indicator is common on many platforms, I believe it is overlooked. The 21 week EMA has been extremely consistent at calling support and resistance for Bitcoin since Even right now this indicator is something that I am looking at to determine how bullish or bearish I am on Bitcoin.
The volume profile tool is also very useful. Bitcoin is extremely reliant on the technicals so the market has strong reactions to support and resistance. Price is the only thing that matters in crypto, so knowing which levels the volume is coming in at is very useful for determining support and resistance. Practicing patience. Not every day is a good day to trade. The right opportunities will stare you in the face — any trade you feel unsure about is probably not going to be a good trade.
You really need to focus on specific markets or assets and study how the charts play out. Focusing on higher time frames, like one day and one week, is important for understanding the context of longer term trends.
You do not have to start trading immediately; first become familiar with the patterns and movements of the assets you want to trade. This can take multiple years to really click in your head. A lot of people will recommend paper trading — I do not. I say that because trading with real money involves different brain chemistry and reactions you just cannot experience with paper trading.
Just start off with trading small amounts. Finally, remember that performing well at technical analysis is different than performing well as a trader. They are two separate skills that both require time to learn. Technical analysis helps predict market direction, while trading primarily involves honing decision-making. The market does not care if you want to make money. You have to flip your mindset around: you cannot force the market to make you money — you must understand when the market can make you money.
As I said before, not every day is a good day to trade. It is worth waiting until you are very certain about an opportunity, and when the odds are in your favor. I learned this the hard way by trying to force trades over and over again, and losing every time. Eventually, you either go broke or truly understand that the market does not do what you want it to do. Another hard lesson I learned was to care less about what other people are saying.
Seek to learn from others, not copy. Stay patient. Putting a stop loss too close to entry means getting stopped out too easily from a trade that otherwise would have been good. What should someone never do in order to help them be successful at trading, or at least avoid failure? Create a set of rules for yourself. As long as you follow your rules, you should feel relatively okay with the situation even if your position is losing. As a trader, you need discipline — if you stop following your system, you usually fail.
Stick to your rules. The best trade I ever made was fairly simple: I bought Bitcoin in when the conversation about it seemed to die away, along with the price.
Around the end of , I was in Los Angeles, and I noticed all my Uber drivers started talking about crypto — so when the price began to fall in January of , I started to sell. The chatter signaled to me that everyone was extremely greedy. The run up and massive volatility showed me the power of macro trends and long term trading. This inspired me to start my YouTube channel in January of , where I began warning people of the impending bubble pop.
My trade was the last one in before it tanked straight back to where the pump began, then continued to push lower and lower. In addition to following these guidelines, swing traders should engage in careful risk management. Swing trading can be very helpful, providing you with greater flexibility and an opportunity to profit from short-term price trends.
To maximize your chances of success, be sure to follow simple strategies like following trends, paying close attention to the latest news developments and managing risk effectively. Since bitcoin trading can be a complex endeavor, be sure to conduct significant due diligence before making any trades. For more valuable information about bitcoin investment strategies, subscribe to Bitcoin Market Journal.
Bitcoin Market Journal is trusted by thousands to deliver great investing ideas and opportunities. Join them below. Swing Trading Basics This approach, which involves holding positions for as little as overnight and for as long as several weeks, is a great way to take advantage of trends in the market.
Tips for Swing Trading As for specific tips, analysts offered a handful of suggestions. Summing It Up Swing trading can be very helpful, providing you with greater flexibility and an opportunity to profit from short-term price trends. Step by Step, With Photos.
Best Cryptocurrencies to Mine with a PC. Receive Free E-mail Updates. You should, too. Sign Up.