Hi, i am new here so i must ask you is it better to buy and sell coins in short period of time, or to buy some coin and wait for a big rise of price? What of these two is better with a small amount of money?
I think that if you have a small amount of money, then you should dollar cost average buy into bitcoin over many years, and use your cashflow (and attempt to increase your cashflow) to build up the amount that you have invested into bitcoin (by accumulating bitcoin). After you have built up your BTC portfolio, then you will begin to feel comfortable allocating some of it towards trading. Don't try to rush into trading BTC until you have build a certain amount of bitcoin and/or otherwise built the amount money that you have invested in various places - and maybe you will invest more into bitcoin, rather than other assets, but that will become more clear to you and your circumstances after you have spent some time building it up.
Unfortunately, few adhere to these strategies and advice. Perhaps this is what distinguishes successful traders from unsuccessful
Many tend to rush into trading before they are ready, and then they invest too much which ends up playing out as gambling, which tends to have high odds against beginners, even though some do get lucky, from time to time, which is likely the exception rather than the rule, as you mentioned.
This is a great guide.I hope that more newbie day traders will read this.I have two questions.
How can somebody determine when the market supply and demand are not balanced?
What do you mean by 3:1 risk-reward ratio?Three loses for every 1 profit?
Both of these are not very fleshed out concepts.. but I think that the first one deals with the identification of good buying opportunities. Personally, I don't think that anyone can really do this identification with precision, but you can still buy as the price goes down and sell as the price goes up and attempt to be strategic about it so that you do not run out of money too quickly. On the second point, I think that you can tailor to your own needs. It remains very unrealistic to cause strict requirements on yourself for how much that you feel that you need to make on each trade when you can not get greedy and to lock in profits more incrementally and smaller, even though smaller trades does take more time and can take a while to build up your portfolio to dealing with larger and larger amounts which bring more profits without taking more risks, if you play it incrementally rather than gambling.