Crypto trading pro

Chapter 1. Understanding the cryptocurrency

market and psychology of the game

Since I consider my duty is not only to teach you but also to warn, I want to
note that retail traders must always be ready to lose their capital as there is
unspoken rule in the market called "90.90.90" which means that 90% oftraders lose
90% of their capital in the first 90 days of work. All these lost funds do not
dissolve. They stay in the market.

Understanding cryptocurrency market

Having dealt with all the pitfalls of banking and pension system, let's
define: WHAT IS CRYPTOCURRENCY TRADING? I have three answers
to this question for you:
● It’s an opportunity to start to make money by investing in a
cryptocurrency
● It’s an opportunity to make a fortune in a short period of time
● It’s a profitable instrument with little risk if traded correctly

Cryptocurrency is a kind of digital currency, the creation,and control

over which is based on cryptographic methods. As a rule, cryptocurrency
uses decentralized control, i.e., there are no regulatory bodies in this field.
The decentralized control of each cryptocurrency works through distributed ledger
technology, typically a blockchain.
And the biggest risk for an inexperienced investor is that the outcome of
trading depends on a qualitative analysis of the market situation and the assets
you are to buy. It’s difficult for a beginner. Although in 2017 the market still
could be analyzed, now it is almost completely manipulative.
To "guess" correctly more often, we apply three types of analysis:
● Fundamental
● Technical
● Computer
Therefore, to understand the cryptocurrency market, you need to know:
● Principles of cryptocurrency market monitoring
● The emergence of the cryptocurrency market, reasons for its
success
● Forecast and development prospects
● Services and sites for traders
● Exchanges for trading
● Complete trading algorithm

Psychology of the game

When working in mass speculative markets, an individual trader faces the
following risks:
● Decisions of the crowd are made at the level of its most stupid
member. So the decisions taken by the crowd are not smart
● Rumors often control the crowd, and rumors tend not to be justified
● A person tends to be influenced by the crowd and make collective,
non-individual decisions.
Therefore, to avoid such risks, you need to learn how to differentiate your
individual transactions from the transactions you make following the example of the
crowd. You need to try to become a kind of psychologist and feel the moment when
your emotions could harm trading.
The first emotion is greed:
Tip: if you have an opportunity to close a deal and reap a benefit
now, you’d better do it rather than hoping for luck and keep waiting.
The second emotion is hope and expectation:
Tip: you need to understand why price should reverse (using all
kinds of analysis), rather than hope and wait.

According to the latest data, at the time of writing , about 80% of all
mined Bitcoin belonged to 110 people. They are the whales who have real
levers of influence on the market price of Bitcoin.
Here is a small list of the most famous Bitcoin whales:
● Roger Ver (150,000 BTC)
● Binance exchange (160,000 BTC)
● Bitfinex exchange (190,000 BTC)
● Bitmain company (350,000 BTC)
● Winklevoss twins (450,000 BTC)
● Bitcoin creator Satoshi Nakamoto (he is said to own a million
coins).

Chapter 4: Technical aanalysis

There are several types of technical indicators:
● Trend indicators determine the likely direction of price movement.
They are also called "lagging indicators." There are the following trend
indicators: Moving Average, Bollinger Bands, Parabolic SAR, CCI and
others
● Oscillators determine the likely point of price reversal. They are
also called "leading indicators." There are the following types: RSI,
MACD, Stochastic, Ichimoku, Momentum, and others
● Volatility indicators – indicators which assess the likely potential of
a price
● Non-price indicators estimate non-price determinants of trade, such
as volume, weighted volume, open interest, and so on. There are the
following types: OBV, Volumes, MFI, ZigZag, Alligator
● Non-market indicators which use values of price or volume for
calculations (indicators of time, sequence, etc.)

And finally, memorize the main laws of technical analysis. AAs

reminder, these are the three postulates of technical analysis. If the geometry is
based on theorems, then the technical analysis is based on three postulates:
● Price takes into account everything
● Price movement is subjected to trends
● History repeats itself

Price takes into account everything. For example, once some media
reported that Ethereum co-founder Vitalik Buterin died. The price of ETH
started to tumble. Later, Buterin denied this fake news by writing on the
social network he was doing well. Right after that, the Ethereum price
recovered. It is obvious that any news can provoke both decline and growth of a
currency.

Price movement is subjected to trends. What is a trend? It is a directed

movement. The trend can be ascending or descending. Accordingly, we tend to be up
or down. There is no uncertain movement: either upward or
downward. And any price movement depends on the direction of the trend that
dominates in the market. If the trend is descending, the price will move down. If
the trend is ascending, the price will move up. If the market is flat, the price
will move horizontally.

History repeats itself. It does not matter how long the cryptocurrency
market exists since its patterns, cycles and other components will always
repeat themselves.

1. The current trend is more likely to last than to change direction.

2. The trend will develop in the same direction until it gives signs of a
reversal.
Remember: if you do not follow all these postulates, the market will
“punish” you severely.

Chapter 5: Support and resistance

The support and resistance levels can be of different strength. We need to learn
how to pick out strong levels.
The first rule: the longer the price hovers in the area of support or
resistance, the more important this area is. For example, if the price was
hovering near the support level for two weeks, and then went up, this area of
support is more significant than if the same price fluctuations occurred for only
two days.
The second rule: if the support level formation is accompanied by a
large trade volume, this level is very significant. Conversely, the smaller the
trade volume is, the less significant is the support level.
The third rule is determined by the remoteness of a support or resistance
level in time from the present moment. Since we deal with the reaction of
traders to the market movement and the positions they either have already opened or
not, it is clear that the closer the event is, the greater importance it gains as
the market is activated to a greater extent.
And as long as there are no breaks on the chart, a trend line helps us
determine the buy and sell zones. But if a trend line breaks, it is the first sign
of a change in the nature of the trend.

CHAPTER 7: Computer analysis

Therefore, my friends, do not ask me which indicator works best. Test
different indicators with different currencies and on different timeframes by trial
and error method.
All technical indicators are divided into three types:
● Trend indicators (SMA, EMA, WMA, Ichimoku Cloud, etc.) which
identify the likely price direction, i.e., the presence of a particular trend
● Oscillators (RSI, MACD, Stochastics, etc.) which identify the likely
point of price chart reversal (they may be trend and flat), define
overbought and oversold zones, helping to decide when to open the
position
● Volume indicators which identify the market volume at a certain
point of time