I believe all the cryptoacademy students might have little knowledge on trading Because a lot of professors have been giving home work on that, Personally, trading became known to be through the help of the cryptoacademy, Due to this and my little research I will be explaining trading in my own words and understanding.
Trading: Each time we say trading actually came in mind is the buying and selling cryptocurrency assets on the market and this is usually done purposely for making an adequate profit than to lose. This is all traders wish each time they enter into a trade. In trading it always functions in agreement with what we call the law of supply and demand on the trading market. I was also able to notice that all traders in the crypto world use one method in their trading which I believe is helping, Traders always purchase any cryptocurrency asset each time the actual price on the market decreases to a low price, keeps in their wallet and might sell anytime the price of the asset increases more than the actual price in which you purchased your asset, This is to make adequate profit in their trades and vice versa. So at the beginning of my work I made mention of the law of supply and demand in the trading market, Which is always manipulating the trading market of any cryptocurrency asset. This tells us that anytime there is vast attention on the supply of any cryptocurrency asset the price of that asset lessen in price, Whiles anytime there is vast attention on the demand of any cryptocurrency assets the price of that asset increases in price, This shows the law of supply and demand is playing a vital role on the trading market and is also the actual cause why the cryptocurrency asset price is not static it can move anytime on the trading market. In the trading market, cryptocurrency is always changing in prices because there is an exchange in the middle of sellers and buyers on the trading market. All the trading exchange platform deals with what we call liquidity. Which is also playing a vital role in the trading market, With the liquidity, it makes all the cryptocurrency assets on the market very ready for traders to either sell or buy anytime they want without any limitations. Currently, trading is more improving and has been made very simple to trade due to the helps different exchange platforms such as Huobi-pro, Binance, Meta trader 5, Meta trader 4, Trust wallet, and many more. To help traders trade in either a buy or sell trade by making your analysis and just clicking the sell or buy button to begin your trades and make profits. In the world of cryptocurrency, Anytime individuals enter into trading they have two perceptions that are either enters a long-term or short term trade. All these two method of trading is very important to traders. Now let's talk about the long term trading, With this method of trading is used by a lot of traders on the market to make profits, Traders the use this method of trading are always found purchasing a cryptocurrency asset anytime the actual price on the market dip to a lesser price keeps to their wallet and patiently wait for the price to increase more than the actual price they purchased it and then sell to make enough profits, I sometimes use this type of trading And with the short term trading is also another method of trading but differs from the long term trading, Because with the short term trading traders always buy the asset, keeps to their wallet and might sell anytime there is a little change in the price of the cryptocurrency asset, So with the short term trades makes profit though but not as much as long term trading, So I would prefer the long term trading for everyone to utilize. We have some method such as technical analysis, fundamental analysis and sentimental analysis. that is provided to all traders in the trading to be used in examining any cryptocurrency asset before they enter into trade to avoid maximum loose of profit.
This method of analysis is very familiar to a lot of traders and currently is more used by traders for their trading analysis. This type of analysis usually makes use of joining indicators, Graph and more for their trading analysis and differs from the other type of trading analysis. And again with this type of analysis traders are provided with the graph data history to be utilized when it comes to the foreseeing of the next or current price movement of an asset on the chart, Traders who would like to go in for a short term trading are always recommended to be using this type of analysis, Traders take their time to be review a particular price pattern and enters into the trade and make an adequate profit for themselves.
This method of analysis is very familiar to a lot of traders and it is also used by traders for their trading analysis. The fundamental analysis it is a type of analysis purposely for traders who would like to enter in long term trading. The interest rates, inflation, GDP, Whale, and many more are considered to be some components of the fundamental analysis which traders can utilize to foresee the nature of the cryptocurrency market with a good analysis. So the fundamental analysis of the price of the cryptocurrency asset is expected to rise anytime the information goes to their liking or as preferred. So it is always recommended that traders can take advantage and buy cryptocurrency assets, Keep in their wallets and relax for the price to go up and they can sell to make profits. So you can see the fundamental analysis is more meant for trading entering into long term trade.
This method of analysis is not very familiar to some traders and it is also used by traders for their trading analysis. This type of trading analysis is very different from the fundamental and technical analysis because this type of analysis purposely deals with human reasoning about certain cryptocurrency assets on the market, That is the way they feel, suspicion and many more on the market. So this analysis comes with how any individual on the market is excepting the trading market to be in the time to come.
I would like to give a brief description of the weak and strong hands are having a great impact on the trading market, Because it is what usually causes cryptocurrency asset price one market to be in either a bullish trend or bearish trend. The law and demand are also serving here, That is whenever ever there is a vast demand of the asset on market, Automatically the price on the market will start to increase in price same way whenever there is a vast supply of the asset on market, Automatically the price on the market world start to decrease in price. Now let's get to the main question on board.
The strong hands in the market as its name signifies, comes with traders who are having a vast funds of investment in the trading market. The strong hand is always dealing with banks, Organizations with vast capitals, and also all the investment funds in the market. Which are always found making trading in the market with a vast amount of money. These strong hand trades help the market in many ways, That is anytime these traders invest a vast amount of money in their trade they automatically help in improving the price of that cryptocurrency asset in the market. They always have a name for these types of traders that is the whale ( Traders with the highest amount of funds in the market) since they have the highest amount they have the chance to be changing the market each time they want, They always control the market because of their funds in the market. One may as how does the strong hand in the market can make their profit from the trading market, expansion and ratio is the way this strong hand makes their profit by a means of changing the market. When it comes to the expansion the whales on the market take advantage to be investing a vast amount of funds in the market purposely for making the price of the cryptocurrency asset dip in price on the market, When it happens this way it is going to get a high demand from different traders on that cryptocurrency asset. The whale is making using different ways in making vast profits, That is after they have expanded the market, They will also take the advantage to be sharing the cryptocurrency asset on market and this is also going to cause another dip in the price of the asset, This is going to make the whales make enough profit from their investment and they also move out of the investment after making their profit, This always cause harm to traders with fewer capitals in the market to be making a profit because the cryptocurrency asset they have investment who find it different to rise in price, Since after they eliminate the market the take out all their capital from the market.
The weak hands in the market as its name signifies comes with traders who are having fewer funds of investment in the trading market. With weak hands it deals with one person, retailers, and small investors. The weak hands differ from the strong hand because each time an investor eliminates the trade it does not have any impact on the cryptocurrency price, Because they serve very small percentage liquidity on the market, Unlike the strong hand which is having vast liquidity on the market so anytime they decide to eliminate their investment is going to affect the market. The strong hand in the market normally take advantage by using the strong hand in the meet to make their profit, This should tell us that the strong hand in the market controls the market.
For this task, it is assumed that everyone should share his or her idea about a trader thinking like a pro or thinking like a pack. In my opinion, I suggest that every trader must be thinking like a pro. In the world of cryptocurrency trading, it is always assumed that anytime a trader starts to reason as a pro, It always tells you that the cryptocurrency is properly ensured for their trading purpose. I earlier talked about the strong hand in the market also known as the whale ( traders with a vast amount of investment) that always have the opportunity to be changing the market. They always take the advantage to be purchasing cryptocurrency assets anytime the price of cryptocurrency asset goes down and keeps in the wallet and they might sell anytime the price goes higher than the actual price. The whales always have the chance of impacting the market each time they want. For a trader to be reasoning as a pro it usually permits traders to be setting their trading whenever as well authorization has been successfully detected in the trading market. One thing about traders thinking as a pro makes them mature in a way that they never follow information about any cryptocurrency asset on the market before setting their trade, These traders always take a good time by sighting the cryptocurrency asset chart and beginning your trade. Traders that happen to be in the weak hand has the chance to be making a profit in their trade anytime the reason like a pro but not a pack, This can successfully be done by traders using the technical indicators by adding two or more indications for their analysis.
In the world of cryptocurrency trading understanding, the trend of the market is also another way that could traders from losing their profits. Traders must always know the trend of the market, Downtrend, Uptrend, and side trend happens to be the three types of trends on the market and I will be explaining each in my next writing.
As the name signifies uptrend is when the market chart is increasing in price. This usually occurs when a lot of traders begin to show much attention or buying the cryptocurrency asset. This is all about an uptrend in the market.
As the name signifies downtrend is when the market chart is decreasing in price. This usually occurs when a lot of traders begin to show much attention or selling the cryptocurrency asset. This is all about an downtrend in the market.
When we talk about the sideway trend it differs from the other trends on the market because with this type of trend it always needs trades to have patience in the market, This is because the market will be having continuing proportion for the different trends to be developed on the market, This could be either a downtrend or uptrend and this usually relies on the category of the strategy used by the user or trader.
The first and the last impulse wave in a trend are very essential in the Elliot trend pattern which is always helping traders in a current trend on the market chart. We have the first and last impulse which I will be explaining how to identify each.
The first and last impulse happens to be very essential in Elliot trend pattern, Because with this impulse traders can clearly sees the current trend on the market. In my next writing I will showing how traders can successfully identify the first and last impulse waves on the market.
Usually, we have our first impulse to be in the starting of our trend on the market, That is following 5 - wave pattern on the chart through a frequent downtrend on the chart. In my next writing, I will be writing some restrictions that it should be able to meet before we can able to call it an accurate first impulse, All this was from my good understanding of prof @nane15 lesson.
- First, we must have our wave number 2 shouldn’t be able to drop under wave number 1.
- Second I must have our wave number 3 to be the extended one, Because of this users are times have a hard time when specifying. This must slightly glance just like the extended one but not the lowest one.
- Last we must have our wave number 4 must not be able to join the maximum wavenumber 1 on the chart.
Now before you can identify the last impulse, We must take notice that the last impulse must be able to construct later when there is a creation of a further 5 waves on the chart later our first impulse, Traders must be a remark that when it comes to this trial through revision that here is the perfect period for a trader to be leaving the spot, Where we go in for the first impulse.
Anytime traders into trade or studying the crypto is purposely for observing a good order. So the main aim of this is task is for traders to be using a good examining for their trade. In my next writing, I will also be indicating the way users can correctly complete a buy order utilizing Elliot waves.
Before a trader can carry out a buy trade, This can only be carried out anytime we see our first impulse, is because at the level, We are going to to have our pattern to be finished, And we will also going to see our current trend on the market to be created as our current high which will be having an enormous more than the which we were having on our 5 lines, we can now set out buy order which is next observing the first impulse, Now we can see a candle up the line, We then set out profit level up the line, and also the stop loss was also set down the line, Due to this we will be able to carry out a great order, This will help us make enough profits and limit the loss.
Before a trader can carry out a selling trader at the last impulse, This can be done when we can observe a bearish trend is possibly wanted to happen in a trial in which we will be able to sight the highest line of the Elliot wave and with this, a balanced line will begin to happen in which lending lower low more than what we were able to see at first, we then carry out a sell order in that trail, and we can also set our sell order under the line and as nicely placed in the stop loss at the top of the line.
Elliot wave clarifies that we can carry out a trade, In a good way so with this standpoint we have the chance to reduce the loss on the market and this can be established on the trend pattern which was constructed. Usually, the theory is made up of 5 trading patterns on the chart, With this, we can later observe punitive lines on the chart, Now the punitive line can specify the point of the trend now that we are about to utilize the punitive lines to specify the stance the market will be exhibiting in the following, Here we will be utilizing the last and first impulse. All traders must always remark that not anytime the pattern might be created particularly in a stance of a market in a range, With this, we can take out time for the market to be completed strengthening ahead to when to go out of the market.
I would like to thank prof @nane15 for coming out with such a good lesson, Indeed I have really learn a lot from this lesson and I hope to do his homework everyday because it contains a lot of information