Disclaimer: not trading advice, not an expert. Trading chia or any cryptocurrency is done so at each individual’s own risk.
In our first beginner’s guide to Chia trading, we covered the absolute basic steps required to buy/sell. Going into our new ongoing guide to understanding the Chia markets. We will cover some of the basic investment philosophy behind how the market works; as well as understanding all the different charts, graphs and numbers being produced by the Exchanges trading software. Then go into depth with some fun stuff like trading bots; as well as try to answer some tough questions on Chia’s value vs it’s price.
It should be noted trading is not a perfect science. Allow yourself to get accustomed to your specific exchanges functionality before getting into more advanced trading strategies. Indicators are not always right so use them with extreme caution (especially leading indicators). Even having a perfect trading strategy does not guarantee a winning trade every single time. Holding is often the best strategy and we don’t want to deter people from holding Chia. How you look at the charts and how you perceive the information being presented will only increase your odds of a winning trade or strategy.
You are your own expert when it comes to your own assets: value is important, but timing is everything.
Hopefully through understanding the philosophy behind some of the market concepts we can better position ourselves; and most importantly time our entry and exit points to maximize earnings.
Be fair warned that there are books and countless papers regarding the philosophy behind the way the market works (The allegory of Mr Market). In my experience They have merit but can also be misleading. There are many factors when it comes to the market and how one enters and exits their positions. By not being able to adapt to different strategies one runs the risk of relying too heavily on a specific indicator; or specific set of indicators. General consensus is that by reading each indication(or set of indicators) correctly and at the right time; will more often than not result in a winning trade. As mentioned above it’s far from a perfect science. So the more indicators you can manage to use the better information you will have.
We will also cover certain indicators more in depth for example candles and all their various parts. And briefly touch on the market tea leaves that are reading candle patterns. Probably one of the more talked about things in trading is candle patterns and their ability to foresee the market future. These candle patterns are good to know but like all indicators, it’s not even remotely close to perfect.
We will go over some philosophy stuff like the relationship between makers and takers and what that means to you. As well as spotting trends, and setting trendlines. These will help you come up with winning strategies and better understand your position in the Chia market; as well as help you spot reversals in trends. New traders are always asking when to buy and when to sell these resources will help in terms of market trends.
Remember nothing beats a solid pre market research strategy. Keep up to date with the daily on goings of chia to know if your investment going forward is worth holding, or if it’s time to back out. A good investor is an informed investor and chia does a great job of letting everyone know what’s up. Ever hear the phrase “Buy the Rumor, Sell the News” that’s what is implied.
Finally we are going to introduce you to Kucoin’s version of a grid trading bot. There are many different types of trading bots and some exchanges like Kucoin have their own you can use free of charge (minus fees). We will go over their parameters(settings) and go through the entire set up process and follow up after a specific timeframe. They can be misleading however and we will cover that in the guide; make sure you are able to keep good track of your trading habits before diving into bots. This will give you a better understanding of where you actually stand when using a grid bot on kucoin
One thing we are going to avoid in this specific guide is futures/margin trading. I’m sure there are many interested in this type of trading but due to the risk involved I’d rather not teach it (yet?). It involves leveraging which very simply means borrowing from the exchange. It’s high risk high reward trading. But it can also land you in the “squid games” so there’s that to think about. If Chia becomes a futures option we can cover it, until then let’s leave it alone. For experts only.
Going forward with this intermediate philosophy guide we should better understand all of these parameters, indicators and basic strategy resources. Once again for the purpose of example I’m going to use Kucoin as my trading platform going forward. Hopefully you will all enjoy the next few editions to our how to guide to trading Chia.