Trading Tips from Toshimoku
They say that Bitcoin is the future towards the futures and options basics on trading. In fact, you can now trade bitcoins to earn a lot of money. Although acquiring them can be costly, the returns are actually pretty good. That being said, what can you do to maximize your earnings?
In this article, I will be giving some tips that a renowned Bitcoin trader, Toshimoku, has given people. If you want to become successful, then read on to find out what his tips are.
1. Trade Only When the Time is Right
To be honest, there really is not the best time to trade, especially when it comes to trading Bitcoins. Just like the stock market, the price of a Bitcoin is highly volatile and it can really change at any moment.
The buy-and-hold strategies and active trading all apply here. What matters most is when you trade your coins. Just remember this: the lower the timeframe, the lower your risks, but you will also get lower returns as well.
The higher the timeframe, the higher the risks, but there is a potential for higher rewards as well. So, it is really up to the individual what he/she wants to do.
2. Look at Performance Charts
One way for you to know if it is a good time to trade is by looking at different performance charts. In trading bitcoins, for example, there are plenty of different coins out there. You can liken them to the stocks being traded in the stock market.
For you to know which ones to trade to allow you to earn maximum profits, you need to be looking at different performance charts. One such chart is known as the Candles.
Whenever the open price (the current price of the coin) is much lower than the closing price, then the chart indicates a Green Candle.
Conversely, if the open price is much higher, meaning that its current price is higher than the closing price, the color of the candle would be Red. It is charts like these that will help you see which trades are more suitable at this timeframe more than others.
This is just an indicator if the market is bull or bear. You can look at the Bill William’s Fractals which allow you to indicate if the market is headed upward or downward.
If the indicator has a low-high-low pattern, then the market is considered bull. On the other hand, if the indicator has a high-low-high pattern, then the market is considered bear.
4. Know How to Read Chart Patterns
have many parts to it. They are the Volume, Measured Moves, Trade Entry, and the Strict Rules.
You have to understand all of these metrics so that you will have a general idea of how the market performs at any given time.
The good thing is that there are plenty of programs out there that can help you with this. Enriching yourself with the right knowledge is essential if you want to earn a lot of money when trading Bitcoins.