How To Day Trade Crypto | Grow Your Bitcoin
Hey, what's going on everyone crypto Austin here sorry I haven't put out a video lately, I've been sick, my dog's been has some issues haven't taken to a vet and, my kids I'm in sick as well so I've been completely out of pocket, so I apologize, but today we should be bringing you a pretty good video here and we're. Gonna jump right in and talk about it so first, thing dollar, chart here as you can see in the trading economics, you can see the chart the dollars going down it's been going down for a while the last time it crossed the the. 30 mark on the RS I was back in 2008. And it looks like we're heading in that same direction which, would indicate that the market that the overall. Economy. Is gonna change at some point here this. Is on the monthly chart so this is gonna take a while to go down here but it will happen I want to say within the next 12, to 18 months or so something than that effect. This. Is something just keep in mind when you're getting. Into crypto currencies because a lot of times people like to move their money it's a silver and gold and then crypto currencies might go up and there's a lot of speculation there and it's, on and so forth so just keep that in mind when you're doing, your trades and thinking about your finances, and spreading. Your in investment, right with. That also keep in mind I'm not your financial, adviser this is not financial. Advice I'm, not trying, to tell you what to do with your money that I'm just documenting my journey and sharing my experience, with you you, do your own due diligence and, invest wisely in consult with your financial adviser yourself, so, the, first thing we're gonna look at I up. About. 15 different things here that we have to look for and now these are not all the things that you'll use it in terms of trading you'll. Be using some of these things but not all of them at times you may use, just a couple but. This is the things that we should be well aware of and just things to look for as we go through our trading day and this may not be an all comprehensive. List so there may be more things that we add to it so the first thing is identifying what type of trader you are right we've discussed this in my previous video are you a day trader swing trader or margin trader long trader short, trader hablar, what, are you right what's, gonna help you determine that is finding, out what type of in time, you have to invest in, your trading so if you have one or two hours a day you may just do swing trading or if. You're if you have four or five hours a day you may want to do day trading. And if you want to hold it for four months, like six months or three years then you might be a holder, or a long trader right measure, your level of tolerance meaning. If you have money tied up into a position how does that make you feel does, it make you nervous does, make you anxious and that's, gonna really determine, what type of trade trader, you're gonna be because. If you, can't stand having your money tied into a position that you're unsure about then. Having. The money there's just gonna stress you out or, having, your. Position, open there it might just stress you out and you, may do. Spontaneous. Closing, of positions, mm-hmm, or, things of that nature right. And also find, out are you a sore loser or not, right a lot of us like to think we're not but if you start asking your friends they may think something different so ask another, person. Or. Ask someone that's close to you and find out what type of person you really are because if you're, a sore loser you, may fall into doing revenge trading which we're gonna discuss, here in just a minute keep. In mind every. Time you get into training, kryptos or any other trading. You may run into beginner's, luck especially, in the bull market like this one where the trend is going up and you simply, can't lose a sale right and so, the way it works is that if the market is going like this you can't lose yourself because you buy down here you sell up here you may money buy down here sell up here you made money buy down here sell up here you made money but what happens when the market turns on you and does this number here and you're no longer in that bull market that beginner's.
Luck Runs. Out pretty quickly right, the. Other thing is only trade what you're 100%, comfortable losing, limit your trade amount based on profit, in losses so basically don't, put anything in that you can't afford or to lose right the, other part, number two is identify, level of risk what right will you be okay holding this crypto long term meaning. You. Know are you okay holding, it long term or do you have to sell it right away and if, you're, doing day trading, or even swing trading you want to get in and out of your trades right you don't want to have them sit there for three, months six, months on and so forth because you're tying up capital and, you cannot cannot you cannot vet. Continue. Trading without this capital. Also. Identify, main time periods based on trading style right are you gonna be a swing trader that's gonna need to use the one-minute the five minutes a 15 minute the 30 minute charts are you gonna be a day trader that's using a little bit longer time frames like. 45. Minutes 30 minutes on a so forth are you gonna be a long-term trader using, a week two weeks three weeks four weeks a month so on and so forth always, check overall, time to charge depending, on style no matter if you're trading a 1 minute a 5 minute a 10 minute of 15 minutes whatever, minute, check, the overall, market, check the one day chart check the the weekly the monthly and the yearly and see what it looks like even when you're getting into those smaller trades. Test. Your strategy. Back. Test helps tremendously but. Manual testing helps even more now what do we mean by back testing what we mean is this if you go to trading view right and you do a back test and this is just to give you an example this will give you a little bit more information for example I have an RSI. Alert. Signal, happening here and there, are a sign alert signal, you could see that how it's gonna turn out over, time and what it's done previously, so previously. It's made 1.58 net profit right it's, closed, around, 1,700, positions the percentage, profitable. Was 72 percent the profit, factor was one point seven one and the. Max drawdown was, three, seventy, six point 38, right and this is a really, important, number here so this is testing. Basically. That strategy, right now I don't use just simple RSI, like that this was just an example to show you guys so you can see what it looks like, but. That's. What you want to do to test your strategy, that's on trading view now let's say you, don't have a strategy on trading view but you have your own strategy, today you want to use it and you don't really want to get into coding there's another way to do your strategy, and it's like this here and basically, all you're gonna do is you're gonna take your sheet of paper, or or, no pad or whatever, to use to identify, these things and let me just clear this out of the chart here and basically, what you're gonna do is, you're. Gonna do, a self-test you're gonna put in the day that you bought it the, time how, much you paid for that position right per token so for example here I put point zero, zero so 425. Satoshi's. That's, actually not an accurate number but just an example your. Exit amount this is the goal that you're going to use in order to come out of the. Position. So, this is where you're basically gonna sell the AXA is the cell right and you could put trailing, up trailing.
Cell So for example if you want to say okay well if it hits, 625. I'm gonna, sell a little bit or I'm gonna wait until it hits. 725. And then. 825. Right, and so this, is a trailing. Cell when you put more than one you're trailing upwards, on yourself, because you never know how far up it's gonna go so you sell a little bit at a time right you, also have your stop-loss that you can set and when you do when. You do that portion, of it you would basically do, a. Certain, percentage, that you're willing to lose from that trade that you did in this case here I just did a hundred so that way it went from 425, to 325, as an example and then you have your trailing profit, and trailered profit works the same thing as the. Trailing sell up here basically, how much what, percent does it keep going up and you, and you you hold, before you sell or you sell a portion of your position, at a time some, people like to sell ten fifteen twenty percent at a time some people like to sell a little bit less some, more it just depends on what type of trading that you're looking to do and then, you put the the. Outcome, of those trades so, if you profit, or you lose you put that the outcome here and the reason you want to do that is to track whether, your trades are actually, your strategy's working effectively. Or not right and you want to do this and I. Put this down that, the best way to do it is around set, a minimum of forty, practice, trades on your strategy if if. Not available in trading view meaning if it doesn't have this on trade if you here where it gives you all the information then. Doing it manually right there will. Will. Help you get, a better grasp of whether your strategy could, work long term or not it's, fantastic. To do it manually because what happens, is you start learning, a whole lot about trading, at that point because you're tracking it manually and you're unconscious in your subconscious starts, processing the information and you start getting all this information in your trades much, more successful, and adjusting, your, strategy. That you're using also, the match drawdown is something that you have to pay attention for, I'm not gonna break. Down what all these things are but the max drawdown basically. What this means is that, depending. On all the trades that you have right, in time. Periods, like for example here. On this one let's say you simply use this RSI you have it to where it's buying even, though it took dips here because, it crossed higher side a number of 30. Even. Though it did that you're, buying here and as you can see there's not another selling, option here it does it didn't exceed that point so you have to wait a while before he gets to that point and as a matter of fact even, with its current. Price. Jump, here we still haven't crossed it as you can see here right so that's what it's talking about it's talking about based on all your trades here are, you actually, profiting, or not and in. Some cases you, may be going negative even, despite having all these trades right so it just depends, on your strategy but, Google, that when you get a chance max, drawdown so you can learn a little bit about that if you don't know what it is and it should give you some insight, on what, it is and you could be more effective with your trades all. Right if you're not okay holding, long term then identify, which coins you're okay, holding long term right is it, the top 20 the top top. 10 the top 100, so on and so forth right this, will also make you more intimate, with that cryptocurrency, and you will learn two charts a little bit better for, me in trading, view which I use coin Iggy and the. Trading view to trade with but, you could see my the. Ones that I currently, have. Right. Here I have about 10 of them that I trade on a regular basis, I do go outside of these trading. Pairs here but these are the ones that are most popular that I use on a normal basis if I don't find an opportunity within these. Here I generally, move on to other cryptocurrencies, that, are less. Well known or not within the top 20 or so. The. Other one, is, number. Six identify, entry, and exits and don't, be greedy and recognize. If you have fear of missing out right this means you set your trailing stop up or down at a certain percent, this might mean 1%, or less depending, on the trainings, for, example if you're trading on a 1. Minute or 5 minute chart doing, one percent increments every day is very very effective but, if you're gonna do. You. Know 5 percent 3 percent 10, percent you might have to stay in the position a little bit longer so you, have to determine what those are and that would give you a better.
Indicator, Of what type of trader you are as well because if you're thinking okay I want to make 3 percent but it, takes a day or two to get to 3 percent in you. Know and you're not a traitor, comfortable, keeping your money in a position, for that many days then that might that might not be a the, best strategy, for you right. As you, know I trade at about 1%, to 1 point. 1. 2 percent and the, reason for that is to cover some of my fees because anytime you're doing your percentages, make sure you're calculating the fees from that exchange, right I recommend. If you're using by Nance to get their finance, tokens, and use half off Commission, on their, on. Their, exchange, this will save you a little bit of money if you use my link down below you. Also save. Some money as well I believe and, you'll be buy me a cup of coffee but, by, Nantz is a great one to use that's, the one I'm currently using to trade with and not, only do they have a great mobile app to use to trade with but, their sites super, easy to use and, I. Can, use it very very well with these charts here as you can see here. All. Of them is through. By Nantz right I've moved. Most of them out of bit, tricks and Polonia acts and strictly started using binding, ourselves of light. Identify. Entry and exit so we talked about that time timing, perfect bottom, may not be the best strategy find, confirmation. Instead okay so this is may, take me a minute to explain but basically, don't. Time the bottoms, here right don't think don't try to catch this bottom here because that's almost, impossible to do it's very difficult, to do you never know when the bottom is right the. Best thing to do is to, usually, just what. I do is just I just go through and I I buy, in series, of the bottom but, I also buy based on confirmation, right, so as you can see here there's a lot of charts and you don't have to use this many charts I just like to be super, safe and make my decisions, based on these things here so. Number. One did, the RSI, cross here yes it did okay did a stochastic, cross, and is the blue over, the red yes it is okay and is, the. No. Sure thing here that across here yes it did so based, on this right here right. It would tell me that I shouldn't, probably put. A trade in not at that point right but. Because we have so many other confirmations.
Including, The MACD here that, might be a position to get into right so if it crosses all of these things here and I get these five confirmations. Right basically, the, the swing, trading from. Low, to, high and the, resistance, we have a resistance, level right. Or a base right, back here it broke, the base right, it broke this base down here good, time to buy and then you could sell it on the uptrend there so those are the confirmations, that I use and that's, basically. When. We're talking about timing. The perfect, bottom to, me it's more timing. Did all of these. Metrics hit in order to get that that trade done right and also. Watching the basis, now if you're using trading. View and you have a subscription, with them then, you, can put in all these different indicators, here like swing high-low support, and resistance, right here, basically. What it tells you and let's go here this one's stellar so for, example in this one it went up down up down and, right now it's telling us to basically buy, and. All we have to do is make, sure that this RSI. Goes, down at the bottom here and the. Blue starts crossing up the, north sure thing is not going to give us a hundred conformation, at this point and that the MACD, starts, curling, up towards. This orange, line I don't know if you could see that but there's an orange line right here once it starts curling up towards that orange line let's. See if we can see it now see that orange line right there then that gives us a confirmation, so even, though the swing trading. Signal. Here is telling us to buy which could be a good time to buy, however. These. Other Eddie in the Gators aren't confirming that so I'm not doing that at this moment right I'll. Wait a little bit and once you know one more signal comes out or so on and so forth then, they'll give us a better idea now if I go into let's, say a 45, minute chart right then. You could see what's, happening here then let's go to the 30, minute chart then you could see what's happening here you see how it's getting closer it's getting closer to crossing, right and then we do the 15 minutes now the 15, minutes the max that it's gonna go at this point, when, you're using the swing low, support, and resistance it's, the max it'll go but you can see that we've hit a maximum, base here it exceeded, the previous base even, though when hi there once, it crosses this, base if it actually breaks through this base here it's a good time to buy at this, point though it wouldn't be too risky to do this one here if, you're planning to keep long term however, don't.
Just Trust on that do your own research and things of that nature because, it hasn't crossed our side here the, stochastic sivan, though has cross it looks like the reds taken over and the MACD still below that orange line there so. So. Anyways so that's how you would read those indicators. There right, so the, zigzag is this, part here and then the swing high low supporting. Resistance is the red and blue, lines here and basically it's just finding basis, for us right it's finding support and resistance, and all the different bases so there's a base there there's a base there there's a base there anytime. It exceeds, the previous base there sometimes, it's a good time to buy enough, a lot of, traders. Do it that way and I'd do it that way too but I also use it in conjunction with other indicators to. Make sure that it exceeds like, for example the RSI, the, MACD and so on and so forth but that's, a great, opportunity. To buy usually right here because you know that once it broke that base if we, went below that base that it's gonna go back, up right at least to that base point there so it's a good time to sell and as you could see on this one here it actually happened that way great, confirmation, that that works all, right, that's all not always going to work but it works for the most part so set up your stop losses keep in mind setting up your stop losses too low or too. Aggressive. May. Cause you to lose money prematurely, so stop losses who have an exit position prematurely, but also reduce, risk now what I mean by this and. Let's. See if we could find one I pulled, wings up on by Nance here and, so, basically, here's. What happens let's say let's. Say the RSI, tells you to buy right here at this point right here right right here at this point and then you're like okay I'm gonna set my stop loss at. 7-5. 7-5. So, instead, of doing, seven, six seven nine six which was here I'm gonna do it for seven five that's where I'm gonna put my stop-loss and, then you buy it here you put your stop, loss at seven five and you have this one, candle. Here just. Spike all the way down pass, beyond, the seven five it actually goes down to seven four oh four basically. You bought it here and it closed you out of your position, on the stop-loss so you have to figure out what percent, you want to do and generally, anywhere, from you, know ten percent of fifty percent of your position. Should. Be the stop-loss but, depending. On the cryptocurrency that you're trading with go back and look at the history and see how sharp, these dips are because, if they're very sharp like this one here and you bought it where that RSI, indicates, that you should buy of. Course if you're using other indicators, it should, prevent, you from doing those type of buy. Signals, but you never know but, it could close you out of your position prematurely, and next thing you know you have to buy it over here and now you're trying to play make up and all that stuff so just, be very wary of where the stop losses are being set okay which. Trading, pairs do you focus on USD, or BTC. As you know trading, if you're trying to grow your BTC, it's always, a, good, recommendation and, may, be more advantageous to, trade with BTC, versus USD. Don't, be wishy-washy, with your entries in exit, this will be nerve-wracking, at first so keep that in mind once, you go in, to. Your trades you, have your strategies, down you've followed all these steps that we talked about stick, to what you know works don't deviate from that stick to your guns this will require, with. Strong will and discipline. So keep that in mind set. A balance threshold. You. Don't want to trade with all of your money so if you're holding some you, may want to use 50 percent of your capital 40, 30 percent so on so forth when you're practicing use, the smallest amount possible. Trade. You know when. You're when you're setting, those thresholds, you could do 10% 20%, 30% 40%, 50%, so, on so forth why I never recommend, any, for. Me and it was I never go all-in right never, trade a balance, that makes you feel uncomfortable and. That's what that's about know, your time zones right for example China. Markets, open up later. In the in the night around 9 o'clock or, so and after, midnight you notice that there's a generally, a spark, a spike, in the market know, your time zones because sometimes, that will affect the market if you're, trading. Late at night or early in the morning and so on and so forth and if, you're coming off of. Different. Time zones that will depend, you, know that will determine what volume and what. Type of trading. Positions, you're gonna be able to put in and if there's enough, folks in that, environment. To trade with right if. You go, into the market and trying to china market hasn't open up yet or other big markets, like Japan or, Korea hasn't, opened up yet then, you.
May You your positions, may, be affected, by those time frames. Find. A rumor so anytime, they say buy. The rumor sell the news. Find. A rumor as I, mentioned previously subscribe. To some of these key, players. Out there in Twitter. Telegram. Discord, right, and really, tried to find the. Rumor out there so, that way you could sell the news now what do I mean by that for example there, was a rumor, that light, pay was gonna list. Like. Coin right and that was a rumor that went on. As. Soon as it announces, that they're actually listed, and using that for. Their payment. You. Know protocol, whatever, you. Know that's the news the news is that, it's. Now like, coin is part of so on so forth and so when, you're thinking about that just try to gauge that as best as you can because sometimes that, can help you with making some decisions now, they'll never make decisions, based on news but do research. Just. So you know hey I heard this rumor I'm gonna do some research I heard, this news I'm gonna do some research and that might give you a good indication of hey you know what this might be a good time to buy the charts tell me it is and so there's the news and so, we're gonna go for it strategically. Make up losses, but do not do revenge trading what is revenge, trading well revenge. Trading is basically, you, make a trade, and you lose that trade right and then you're like you know what I'm gonna go bigger on the next shade to make up for the previous trade and then you lose that trade and then he just keeps perpetuating the, same same losses, that you've been doing mostly. Because when. You're revenge trading you're doing a lot of it based on emotion, and not strategic, so if you're gonna make up your losses make, sure that is strategic. You're. Strategically, making up those losses and not revenge, trading and you're gonna have to be able to know and the, distinction between the two when you get into it because if you notice there's a lot of motion that comes with it then you what you might need to do is just walk away come. Back with a fresh mind have, have. Some coffee drink some tea take a nap go for a walk talk. To you significant, other whatever take. A break for a little bit and then come back to the trade right making. Up losses, with doubling down holding. Longer spreading. On investment, and compare. Average wins, will always, help, out when you're doing strategically. Making up losses, number. Fourteen find opportunities, if no trade for the day just walk away if you don't want to trade that you like don't sacrifice. Your. Your, strategy, don't sacrifice, what you know works. Because. You're trying to get into a trade there is certain. Things that happen when you trade especially if you win a trade your dopamine levels go up. You. Know if you're losing trades your adrenaline may go up and those, types of things may you, know may make you feel a certain way to, want. To get in and out of trades and things like that and over trading is a really, really risk. Overtrading. Usually, ends, badly, okay. And. So find. Opportunities, if there are no opportunities walk. Away this will limit over, trading. Number. 15 watch the trends and don't. Watch others, right if you have a strategy, that works you hear a lot of fun out there you you have you. Hear about a lot of FOMO or if you feel a lot of FOMO if you, hear a lot of fake news and other things in the market don't. Change your strategy right. Unless. It's irrefutable, proof, meaning, the crypto market, has been hijacked and, it's. All gonna die well in that case if that happens, then. You know that. You. Maybe have to sell your whole position right but you got to confirm, that it's real news it's not fake news don't just start following people on YouTube, like myself or, anyone else and do, your trades based on that find. A strategy that works for you and make those those, those trades. Based on that strategy trust, me if you find one that works and you stick with it and you have the will discipline, to do it you're gonna make out big-time, trust, me on that okay so, as, you, can see here. This. Is the chart for stellar I pulled, up stellar I just pulled up any coin here and you. Can see I have a lot of different indicators here right but. Basically, all, of. These indicators, will give you some information if you trust only one indicator, and don't do some technical, analysis, then you, you may be setting yourself up or putting yourself in a situation for, example if you take stellar here you see that it's hit a number of bases here right see those bases, there right. It's, hit a number of bases there and it's currently at a base right and it, couldn't exceed the base it could it could exceed the base however if you, look here the stochastic shows, that were overextended, the last time it was overextended.
On RSI, it was right over here in this, part here. Where. Was this this was February. 15th. Right, and. It. Went back up and so on so forth now this is on the 15-minute charts, if you use longer charts, that's going to give you a, view. On that and. Basically. If it's, hit these support, lines here what. Do you think is gonna happen right you think it's gonna bounce back up well. Here's here's the deal I'm not gonna give you that answer but what I am gonna do is I'm. Gonna let, you put down on the comments based on stellar current. Position that is sitting on the chart here let me know do you think it's gonna go back up at, this, point or is it gonna continue, on the downtrend, based, on the chart and analysis that you did all. Right thank, you everyone hopefully that was helpful we. Didn't get into a lot of technical analysis, type stuff and I'll do that shortly. In a different video but, hopefully. You've got something, out of that if you haven't please subscribe thumbs. Up leave me a comment down below let. Me know what you what you're doing in this bull market are, you profiting are you holding, what's, going on with you there okay hope you're having a great weekend and I'll see you in the next video talk to you soon bye bye.