The Crypto Alchemist's
4 Easy Steps To Day Trading
STEP 1: Elliot Wave Location
Determine where in the Elliot Wave (what leg) is "Right Now?" Are we downtrending or uptrending? When will this leg end? To figure out when this current leg will end, I use wedges to estimate that. Remember, to correctly predict where to place your sell / buy orders and how to accurately predict soft / hard ceiling / floors, know the rules of Elliott wave theory intimately. Each leg of the Elliott wave has very strict and rigidly defined rules for the following leg of the wave when using Fibonacci Retracements in the next step - although there are safety zones where you can always place your sell or buy orders, you will see much higher profits on much tighter margins once you learn the relationship of each leg of the Elliott wave and how they correlate with the Fibonacci Retracements.
Step 2: Fibonacci Retracements
Once you feel you have accurately determined the current location of the market in the Elliott Wave, the next step would be to apply Fibonacci Retracements to determine the proportion (or "strength" of the next uptrend or downtrend) of the soft / hard ceiling / floor of the next leg in the wave so you can determine soft / hard buy & sell points. This will help you determine the level of risk you are willing to expose your position to. I look at the Fibonacci Retracements as my maximum and minimum thresholds for realizing gains. Within minutes of the point of readying to trade (if you've determined you're going to trade by this point) begin the 3rd step. I say IF you've determined you're going to trade because the timing might not be right for you - but you should figure that out before even moving on to step 2. Remember, day trading is dangerous, it exposes your position to greater levels of risk disproportionate to the reward! It is an acquired skill and should be respected as a craft that one can attain Mastery of through diligence of learning the applied theories and practice with smaller positions first.
Step 3: Bollinger Bands
First, determine if the market is at the top, bottom or the middle of the Bollinger Bands. Buy at the bottom of the Bollinger Bands and sell at the middle or top, depending on where you would like to realize your gains. Don't forget to overcome transaction fees for your trades, make sure your trades are large enough to cover your fees while also giving you your desired spread! Do not trade at this point, there is one other thing to consider before pulling the trigger on a sell or a buy!
STEP 4: RSI / Is it Oversold or Overbought?
If I am buying: I will only buy at the bottom or middle of a Bollinger band if the RSI is at 30 or below. Once the RSI has reached 30 or below, the market is considered "Oversold," and is a strong indicator that imminently there is going to be higher surges of buy orders to offset the oversaturation of sell orders - usually moving the price upwards, hopefully creating an uptrend. At times you will see the market trade sideways when the RSI hovers around 30, however there is less and less sideways trading with a higher likelihood of at least an upswing as the RSI dips further below 30.
If I am selling: buying and selling using Bollinger Bands and RSI indicators are very corollary and easy to understand in both the buy and sell directions once you learn the methodology of this trading style. Not to sound redundant, but once the RSI has reached 70 the market is considered "Overbought," and is a good time to consider selling. While the RSI will dip below 30 when buying and will rise above 70 when selling, both of these trends are short-lived and should not be counted on for better buy prices or realisations, respectively, as the risk-to-reward ratio dramatically decreases at these times. Remember not to be greedy, day trading is already putting your precious position and higher levels of exposure & dramatically increased statistical risk - use these indicators and tools wisely and you will see steady, gradual gains as you become more skilled using these methods.
REMEMBER - This is the trading method I have developed for myself over the years; and while I might not be the best trader out there, I take steady gains at lower levels of exposure by following these principles strictly. I highly recommend doing long trades, especially if you are inexperienced, I just wanted to share my methodology with my blog followers so you guys can get an understanding of how I trade when I'm day trading. I started out just doing long trades until I felt comfortable employing these methods. Trading is in emotional roller coaster full of twists and turns and stomach aches and sleepless nights! But it's an adrenaline rush just the same and if you enjoy the rush, my methods should bring you a semblance of safety when chasing the crypto dragon! Have fun, be safe and cheers to huge gains over time! With love, I hope you enjoyed this post :-)!
If you have any questions just leave a comment and I'll get back to you! Don't forget to check back very soon, I'm going to be doing trading games for anyone wanting to follow along. I will be placing very small positions over a series of 10 to 20 trades to yield huge gains and everyone is welcome to follow along :-)! Check back on my blog soon to join in on the trading games! Below I have posted the code from the original blog so that if you guys want to jump in on the trading games you know what to look for in my blog posts coming soon. Everything after this point is from a previous blog entry that I have copied the code from, it is something I'm referring to as "The Trading Games."
ORIGINAL BLOG: The Trading Games
Don't want to play & just want to see my method?
Okay so the trading is just a game, it's going to be just for fun even though I'm REALLY going to be making the trades in the next 20 posts that relate to this 1 million litoshi I'm investing. You don't have to participate, but I really encourage you do - especially if it only takes three or four years to reach success! What a retirement plan with a $1.58 :-)! But what this post is really about is my method - how it might help you especially if you don't have a lot to start with - and what you can expect to find on my steemit in years to come involving crypto. If you don't want to play the game and trade with me scroll down past all of the content of this post and I will have my method at the end. It helped me get back into Crypto, and I know that no matter what I start with I can always achieve my goals! To the Moon wherever we go guys :-)! Steemit for the win!!
TRADE WITH ME!
Let's TRANSMUTE ~$1.58 USD (1,000,000 Litoshi) - MAKE 20 2X TRADES - BOOM! MAKE ~$1.6 MILLION USD!!!
All right guys this should be a fun experiment! So a while back, about a month or month-and-a-half ago I downloaded an app called Litecoin Miner for my smartphone... This app was pure annoyance, in no way was it at all the type of Miner I was expecting... I should have known because scrip would be the crappiest mining experience on a smartphone, but I was holding out hope that I could at least mine some free litoshi on my smartphone!
At this point I would recommend going to The Exchange and buying 1 million litoshi because the next step using the app is absolute torture!!
Like all mining apps of this variety coming out now, this mining app put a minimum on how much litoshi you had to have before you could transfer your balance out. This one was 1 million litoshi so it wasn't as horrible as the others, although the method at which you had to obtain your litoshi was kind of annoying... Well it's just not even really worth your time but I did it for fun anyway... If you're wondering what the app looks like, I'm going to put some pictures in here just in case you guys want to follow along. I'm going to be officially starting the 20 2x trades on my 1 million litoshi in about a week or two so that should give you some time to catch up if you want to follow along using the app... Although it would just be easier to buy LOL, but if you're in it for the experience! By all means, you have a week or two just let me know in the comments if you plan on following along using the app so I can give you some time to earn some litoshi... It took me forever, I'm really really advising that you buy it, but if you don't want to invest a single penny other than your time and the cost to charge your smartphone and you really want to experience the rigors of this challenge just keep me in the loop :P. When I started doing this I had no intentions of starting this blog but I figured this would be a fun way to spend the money :-)!
This is where I'm at now!
I'm currently waiting for the Litecoin Miner app to transfer my 1 million litoshi to my Binance account. While I wait 7 to 14 days, you can jump the gun and get there before I do by opening up your Binance account and buying 1 million litoshi if you want, it's up to you! If you don't have a binance account, they are free and you can sign up for one HERE!
So check back often for updates to this post so you guys can follow along as closely as possible. Timing will be everything to get the exact numbers that I do although I'll try to forecast an hour or two ahead and place my buy orders in the future an hour or two - at least I will try! This is for real though guys! Let's all trade together and get there at the same time :-)! I'm posting my method below so you guys can apply it to ANY starting amount and see why I originally derived this! STELLAR WISHES BROTHERS & SISTERS!
So I devised this method because a lot of people were telling me that they missed their opportunity to invest in cryptos so they just decided to NOT invest anything now because they can't buy Bitcoin sub $1,000 anymore... Sorry to tell you, those days are probably all but 100% gone now. Seriously, I doubt that short of a complete crumbling of the structure of society as we know it, and even then I have my doubts, will we EVER see $1,000 Bitcoin again! So hearing that argument is moot and is a complete non-issue to me... Inside I knew that there was a way to explain to people that it's not too late (in fact I doubt it will ever be too late), but I just couldn't think of a simple enough way to explain to them why.
Well I was watching the markets closely like I always do November and December, and it hit me. I see a 2X trade and verbally call it every 2 or 3 days, although I never actually touch my long hold position to play it, I still see it before it happens and call it. I'm becoming more of an aggressive Trader as I learn more tricks like Elliott wave theory and Bollinger Bands Etc., so before I ever became a more adept day-trader I was just playing the longer hold 2x positions. (BTW - I define a 2X position as any position that I plan to sell at twice the initial investment)
So assuming that crypto will still be around in 5 or 10 years, I came up with the perfect investment strategy for say; my parents, or a naysayer friend that you just don't want to see left behind... With this method, minimal effort on your part, and minimal capitol from your friends or family - you can help them invest a smaller position to get in and they can still catch SOME of the wave - even if you have to do it for them at minimal risk.
FIRST! Just tell them its Bitcoin...
Don't even bother trying to explain alt currencies - if they understand the word Bitcoin just use it, you're probably going to be doing most of the work here LOL.... Remember I'm doing this for family so I'm assuming you guys would be doing it for a similar reason...
SECOND! Allocate the initial investment...
For the sake of this example I'm just going to say $100 USD. You want this number to be a rounded number because you're going to explain this to them in 10 "double-up" (fancy lingo for a 2X) trades over 5 years. You are simply going to make one trade every 6 months banking only on 2X trades ... $100 is a good number because anything sub $100 will not produce 6 digit results, and also most people understand basic math and can count by tens! Of course, once you get better at picking the 2X trade that's going to happen you can increase the speed at which you trade to get to your goal faster, but I figure even the most basic basic trader should be able to pick one trade every six months that is going to go to 2X! And BONUS* - if you can't, just read my blog (or Weapons Grade Media (My team)), we will probably give you at least one every month if not more - especially once I have my trading bot developed (AKA "The Trap-Bot"). Also, we will be giving out a lot of advice during the 2 peak trading seasons, May-June, and November-December, so just stay tuned but always be on the lookout for your next 2X if you are using this method... We can't see it all!
THIRD! Show them the numbers and why this will work...
Plug in your own investment number (if not $100) and crunch the results...
2X Trade #1: $100 -> $200
2X Trade #2: $200 -> $400
2X Trade #3: $400 -> $800
2X Trade #4: $800 -> $1,600
2X Trade #5: $1,600 -> $3,200
2X Trade #6: $3,200 -> $6,400
2X Trade #7: $6,400 -> $12,800
2X Trade #8: $12,800 -> $25,600
2X Trade #9: $25,600 -> $51,200
2X Trade #10: $51,200 ->