Fasttrading ALTCOINS on Binance

I wanted to share something with you guys that I have been doing lately, which has made me feel less bad about the big dip we have been seeing in the Cryptocurreny market lately: Fast trading or also referred to as Day trading.
The platform I have been using since I started to trade in Altcoins is Binance. It is a nice platform with a decent infrastructure and it is fast, which makes is very suitable for Day trading.
In this post I want to show you how I go about to search the coins that I am going to trade and how I choose where to buy and where to sell the coins. Keep in mind: this is not about making 50 or 100%, I look for very short buy and sell opportunities and try to hold on to the coin as short as possible.

Also: I am not a financial adviser and I am not saying that the method I use has a 100% guarantee of working! (I have lost some money too, but always earned it back very soon)

Lets get started!

After logging in on Binance.com I go to the Exchange button on the top right of the page.Once you click on it, you get the choice between the ''Basic'' or ''Advanced'' Exchange. For the fast trading it is necessary to use the Advanced exchange (it is not more difficult, but we need to indicators that are only available in the Advanced Exchange.
After opening the screen of the exchange, you click in the button in the top right of the page as indicated on the picture below!

Now a menu will open with all the Altcoins which you will be able to trade against for instance Bitcoin or Ethereum (I always use Bitcoin, but the choice is up to you, because it doesn't change the method). In the Menu you search for the coins that have the highest trading volume in the last 24 hours. you will see these coins when you click on the button as shown in the picture below.

We see that the coin IOST has the highest trading volume and just for this tutorial we will choose this coin. When you click on the coin in the Menu it will open the graph of the IOST coin. Because we are trading as fast as possible, we will set the time limit of the candles to 1 minute. This means that every candle that we see in the graph (a candle is or a green or a red vertical bar in the graph) is the time span of 1 minute. By clicking the button as indicated on the picture below, a little menu will pop up and it will allow you to choose to set the time limit to 1M which means 1 minute.

After adjusting the time limit, we need to add the indicators we will use for establishing the time of our buy and our sell. By clicking the button ''INDICATORS'' as shown on the picture, a menu will pop open and in that menu you click on ''BOLL'' (Bollinger Bands) and ''StochRSI'' (Stochastics) to add these indicators. The indicator tab is shown in the picture below. The Bollinger Bands are the three lines that are below, in the middle and above the price line and the Stochastics are the line in the bottom of the graph that make the wave pattern.

NOW WE ARE READY TO MAKE OUR TRADE!

First we have to search for our entry point (the price where we are going to buy the coin). This is how we do it:
We search for a point in the graph where we can see that the candles are touching the lowest Bollinger Band and at the same time see a crossing in the two lines of the Stochastics. Th crossing of the Stochastics lines mean that there will be a change of direction of the price line. Knowing that the price line is touching the lowest Bollinger Band, the normal reaction of the price is to go up! Therefore we have established our buy price! Look at the picture below to see the exact point where these two factors come together in the graph! We have a buy-in price of 0,00000778 or 778 satoshi's.

When are we going to sell and take profits?
We make the sell right when we see the price come above the middle line of the Bollinger Bands and we see the lines of the Stochastics coming together again and ready to cross. The point for this trade was on the moment shown on the picture below! We see that the sell price was at 0,00000799 or 799 satoshi's.

This price difference doesn't look like a lot, and that's true... it isn't! But that's the point! it is a very reliable, fast trade but it doesn't have a crazy profit margin. But the repetition is what makes the trading profitable! Let's do the calculation:

Our buy in price was at 778 satoshi's. The money I invested was a value of 1000 euro's in Bitcoin (of course). the sell price was 799 satoshi's. if we divide 799 by 778 the answer is 1,02699...... which means that we had a 2,7% increase. We have to deduct the trading fee of 0,2% (0,1% for buying and 0,1% for selling) Which leaves us with a 2,5% Net increase. Having invested 1000 euro's we have made a profit of: 1000 X 0,025 = 25 euro's. Again, this doesn't seem like a lot, but there are three things you have to keep in mind! The first; if we look a t the time frame of the trade in the picture we can see that the whole trade (buying and selling again) took a total of 8 minutes, from 9:07 until 9:15! Secondly, This is in a pretty bear market with prices going down, so your holdings will probably go down in euro value, but you can still earn money with these trades! And lastly, you can do a couple of these trades a day which can earn you an easy 100 euro's a day.

But then again... this is crypto... always do your own research and never put in more money then you can afford to lose!

This was my tutorial on Day trading!
Have a nice day Steemit!

Just_DB