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Definitions of Commercial Terms:

Buy stop:

It is the purchase that is made above the price that currently marks the order is placed above a previous resistance and is used to have greater success in operations that have bullish or bearish forecasts, for example I buy above because there is an overbought surely going short. but buy above can also mean that the price will rise even more to seek new resistance and record highs.

This means that we will have to be very attentive to the events that cause such events such as oversold or the fomo of an asset buying 1 or more whales etc..

Buy stop chart:

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Sell stop:

It is used to place sell orders below the current price this is due to a strategy that we can visualize in our technical analysis is used to place stop losses and get out in early positions of downtrends or simply to exit at those points and not lose money. thus being able to enter another operation later. this is used mostly when we go leveraged and need to define the stop loss. always look for a point close to the previous support.

Sell stop chart:

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Sell limit

Is the limit where we place an order below the current price this is used to buy at support points when we see a pattern that indicates overbought and we see for example a shark fin RSI pulling below 30 then back to 30 to confirm early correction this is the entry point to the trade therefore my sell limit order would be placed right at that point.

Because when we see the whales exit trading we see a decrease in prices this is due to the big sell off that translates to more assets less demand than supply so the price will automatically drop to those levels we must be very vigilant and create short orders quickly to profit.

Sell limit chart:

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Limit buy:

It is when we place a sell order above the current price everyone uses it to make profits by buying at support and selling at resistances and low volumes, by placing a sell limit order we will increase our profits and prevent stagnation in those markets. for example we see that a shark fin is forming in that area that pattern indicates a rapid correction to the nearest support so we have to immediately exit trading to take profits and then buy back if it is the case in those low potions.

Limit buy chart:

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Trailing stop loss:

It is when we place a stop loss but this follows us in our uptrend or downtrend chasing in if the market where we go directed is dynamic and practical to take more profits in operations as it moves in parallel to the price that we mark and is activated is when the market turns protecting us from being liquidated or trapped in the market, for a long time this is one of the favorite methods of the trader. because it protects the assets or the operation of high volatilities of a market for a certain time.

The stop loss trailing stop is aba in % of risk stop moves together at the time that the price is changing at the time so we will be safer because the profits and our assets are protected.

Margin call:

The margin call in a crypto trade is used when the margin or leverage investor runs out of funds because he made a bad analysis or simply the volatility of the market by any action took a turn then the user makes a margin call to the market where he is trading so that it generates more funds and can continue trading.

In the case that the user does not make the margin call he is automatically liquidated by the market leaving the operation and losing money which we hate but if it happens, the trade closes the positions without funds without the right to more anything.

Understanding risk management in trading.

Risk management refers to the management that can have your capital to have more gains than losses in operations we must know that for this to make sense we must win more and lose less, therefore we apply a rule of equal to equal and we will divide our capital to 1% or 2% in operations for example 1:1 because in this way because we decrease the risk of losing everything.

In this career unfortunately I have seen my friends run out of money because they invested 100% in one asset, that's why the saying "don't put all your eggs in one basket" is the word "diversify".

For each operation is the same we must know that if we risk 1% we must earn 1% or 2% to encourage us to try then we must plan the different scenarios and make decisions that guarantee the potential gains.

Take into account the planning of tools that help us to study the technical analysis and the different digital analysis.

To have a healthy mind, away from greed, away from the Fomo, never buy up and wait for it to correct, leave the fear aside, emotions are the main Achilles heel.

Always place stop loss and stop lomit on trades.

Moving average trading strategy

From what I have studied moving averages are too important they do not indicate the direction of an asset for example the golden and death cross are indicated to us by two moving averages one of 50ma and the other of 200ma ( or periods in days) I quickly explain how the crossover process is. When the 200ma line passes above the 50ma line then the death cross is created, this is equal to bearish trends and when the 50ma line passes above the 200ma line then it marks a bearish trend which indicates a clear trend signal in the market according to the time frame required.

If we join this moving averages with the ADX and RSI we will have a very powerful tool to speculate the market the following graph I will talk a little about this.

In the following chart we can see Bake/BusD

If we look at the following operation we see that a shark fin pattern is formed and in the RSI an oversold then I take advantage of that movement to enter at point 30 just in the RSI retracement then I go to 1% loss 1% profit. we can see the resistances and the golden cross just after completing my operation but we also see that my operation was a success.

Earning that 1% of the capital of my balance when we perform a technical analysis with these indicators we see the importance of learning every day and not only to study but also put it into practice I have already seen in practice how to do it I invite you to study and see with your own experience the quality of work so wonderful that is achieved. taking into account the risk management as we see below the stop loss and take profit at 1:1. as a base rule.

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Conclusion:

In the following research we talked about very important fears that perhaps some did not know here I explained each of them so risk management is very important for what I said above I have seen how friends lose money betting everything and not managing the risk to losses of their assets then for this we must manage our capital very well create solid and efficient strategies that allow us to win rather than lose that the point in all this not get carried away by hope nor by fear. we must follow the methods raised throughout the academy in this way we will have a high percentage of profits and fewer losses.

@yohan2on

Thank you