Swing Trading Cryptocurrency (BEST 2020 GUIDE)

today we're gonna be talking about swinging no i'm not talking about those pesky parties that your parents always went to and came back looking disheveled i'm talking about swing trading similar to traditional financial assets there are a couple of different and popular crypto trading styles such as day trading swing trading buy and hold investing but among those swing trading is considered the most suitable for beginner traders why is that you ask well you will be finding out in today's video find out why it's actually a strategy that i use let's get it welcome to bible crypto the hardest working channel in all of cryptocurrency if you're new hit that subscribe button check the description for links you can use to connect with me in the bit squad all right guys as i briefly mentioned three trading types at the start of this video i'm going to quickly explain each of them so that you guys can have an idea on what each is and what makes swing trading unique so let's begin with day trading or intraday trading which refers to a strategy in which traders often enter and close a position in one same trading day profit is generated from price changes during the trading session technically this includes very short-term transactions and traders will not likely keep their positions open overnight another trading strategy is buy and hold investing we'd rather not call it trading because this is a long-term investment investors will set their eyes upon specific portfolios for a long duration so a small price fluctuation in a day or a week doesn't matter considering the young age high volatility of crypto this type of tactic is not yet so familiar amongst crypto traders swing trading is the one that concerns us in this video this type of trading focuses on watching you guys like to watch and capturing price tendencies to successfully detect movements of market price traders will have to spend time analyzing data charts and making predictions therefore swing trading is seen more often for short to medium terms in typical occasions at which price tends to form a trend can you guys already see why from the beginning of this video i claim that swing trading is the greatest for new traders ding dong the right answer is the time frame an understanding of the market is required day trading takes place in just a 24-hour session which requires traders to master technical analysis and to be able to make very quick decisions while also being in a highly stressful activity buy an old investing is a chess match as you need to choose the eggs to put into your buckets and keep them still for a long time it's not only being able to select the right coins but you also have to be prepared for sufficient capital and nerves of steel to cope with unexpected ups and downs in the market starting with this type of trading it would have prevented you from experiencing and learning the ins and outs of crypto investing all of those complexities make swing trading a perfect option for beginners you can have more time to study and consider which crypto holds a sustainable growth or whether to place buying or selling orders swing trading is like a medium strategy an introductory lesson for newcomers because it provides opportunities for you to gradually practice all basic and necessary techniques that you will need to use for day trading and long-term investing afterwards what are those techniques that i'm mentioning well i'm talking about technical analysis price chart interpretation candlestick patterns even a little fundamental analysis we do a lot of it on this channel and sentimental analysis your job is to foresee the potential movements in the next few sessions and predict how long the current trend will maintain or when the price is likely to reverse so it might take perhaps 1 hour 6 hours 12 hours 24 hours sometimes days or even weeks to capture the right moves the specific points of entry and exit and the breakout level time frames can be elastic but as a swing trader you need to completely focus on daily charts so as not to miss any precious pieces of information now let's not beat around the bush and let's focus on the real tricks of doing swing trading the first and most important rule is buy low sell high never do it the opposite way no matter if you're in swing trading day trading buy and hold investing or moving to a new house due to the crippling economic situation the recipe to make money is to sell higher than what it costs you to buy even if you utilize some advanced tools like smart contract options there's another way around it the next rule is to always determine beforehand when you should enter a swing trade we already agreed that swing trading is most suitable for a short to medium time frame in which you have to be able to nail the direction of the market that means a stable market when a sideways trend is taking place might be more difficult to forecast on the other hand a market with a highly wavering price seems risky for investors therefore swing trading beginners should start from a market with an easily predictable uptrend or downtrend of course in that situation the margin may not be as high as you would want but i guess that's not too bad even if you're pretty sure it's the most suitable timing to enter the game and place a trade don't just go out there recklessly is hey you can fall into a pit and lose all your money so you got to be careful with what you are doing but anyways to know oneself is true progress in this case it's not just to catch a glimpse of the market trend but you have to be able to understand it like the palm of your hand the only way to do so is conducting technical analysis that means reading charts construing price indicators dissecting each day's candlestick volume and combining with some advanced models like moving averages relative strength index or rsi bollinger bands or fibonacci retracement boys there are tons of indicators that you can use to detect price movements we've checked out market cipher cad x trade there's some good ones out there should you want to complete your homework check out past videos about technical analysis that i've done certainly building your own swing training chart is essential and indispensable but it would take a while until you become a true master hence swing trading beginners should consider adding more protective methods of which stop loss orders is one of the most common apparently some of you can't spend the whole day looking at data charts if so stop losses is the most handy way to keep you safe and from suffering you can place a predetermined level at which your positions are automatically closed as soon as the price sinks and hits that level this is a perfect tool for new players or inactive traders to control your losses from swing trading now let's wrap up our video here with the five best swing trading practices so you know how to make the best out of your swing trade number one draw a plan and stick to it persistence is crucial since swing trading is not something that can be done in the blink of an eye you've got to be patient and follow with the discipline if you're reluctant or inconsistent then swing trading might not be for you number two place stop losses and don't be greedy like any crypto trade strategy swing training incurs inherent risks of digital assets such as high volatility and unpredictability therefore be aware of those threats and use all the means you have necessary to manage possible dangers make sure you don't lose too much before you can earn that's another important lesson to survive number three don't forget to check the news if there is an important announcement about to come up tomorrow you'd better close all your positions today it's probably that the announcement will have an unforeseeable impact on your coins that's what you should try to avoid number four don't leave your positions open overnight you know that prices in crypto can change unimaginably just a few minutes it might be amusing to open up your block folio at night and check your portfolio but you can't keep your eye on it all the time if you want it's safer to trade just a portion of your total coins number five twenty percent rule whenever you see your target coins going up twenty percent while others remain unwavering you should go ahead and sell them more often than not the price will decline by ten percent in the very next session follow these five rules and you'll be closer to claiming the lamborghini they promised you when you were introduced into crypto gotta get rid of that whole moon and lambo thing i'm just kidding let's not do that but now it's your turn what other rules do you know about swing trading are there any other strategies you want us to explain let me know down below in the comments section i hope you enjoyed this video if you did please make sure to smash the like button and hit subscribe to become a member of the bit squad thank you so much for watching have a blessed day [Music] you

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