The search for the right trading knowledge begins
I started trading bitcoin and forex months ago and just dove right in. This was a pretty crazy thing to do cause there is so much information on the net about forex and crypto trading that it isn't funny.
The first thing I started to learn was candle sticks and candle stick patterns. I spend at least a month trying to trade off of things like doji's with at least a 60% tail to body ratio and the like. However this led me to frustration as every hour I would check the charts and look for a doji to trade on and sometimes this would only happen once in 24 hours.
Being as I was not wanting to risk a huge amount of dollars on one trade, I wanted to be able to make about $100 a day from 1 or more trades a day.
As I got tired of waiting for doji candles I started to research other candle stick patterns to trade on found some interesting patterns. However trading most of these patterns also meant a lot of waiting for hours to make a trade.
I realized I needed something more...more info, more training and possibly a mentor to become a successful full time trader. After months of trying to learn trading I was pretty frustrated and then the btc drop from $20,000 down to $10,000 happened.
All I was able to do was but the btc I held into usdt and watch and btc dropped. This was a time where I though crypto was just going to completely collapse.
From this experience I learned that being able to short is a requirement to trading effectively and the intitial exchange I used for crypto did not have a shorting option. So this is when I did more research and found bitmex.
This exchange did allow shorting of btc and was relatively simple to use. So my next stop was furthering my education of trading with patterns and charts.
One of the things I heard of a lot in my previous research is a 4 to 1 trading risk to reward ratio. This intrigued me and I wanted to find out more about it. However, this seemed hard to do and it was like it was being hidden by pro traders because they would say "this looks like a 4 to 1" however they would not go into much detail about why it looked that way.
It could very well be that after many years of trading one is simply able to see the pattern immediately, however for us newbies how were we supposed to know when it was a 4 to 1. So I set out on a mission and somehow stumbled across the Elliot Wave Principle.
I got one book, Sentiment in the Forex Market...read it and it referred a lot to the Elliot Wave Principle book as well.
So I picked up that book and did a bunch of reading and tried to take it all in as fast as possible and it definitely helped me to start making trades.
The patterns are simple...sort of... especially in the beginning it took me some time to realize that a pattern that looks like an impulse was starting with waves 1, 2 and 3 might not actually be the start of an impulse but an ABC pattern. Essentially I learned that knowing where the pattern in on a 1 day chart and then going down to a 1 hour to map the patterns was like being able to read into what is going on with the trends.
The Elliot Wave Principle was hands down been the most powerful thing I have learned. And I wish I started learning it first, before even opening a forex or crypto account.
It has probably taken me a month of learning Elliot and doing trades to really get into the feel of the market and it has been well worth it.
As for learning the Elliot Waves I highly recommend the Elliot Wave Principle Book by Frost and Pretcher.
The first thing I started to learn was candle sticks and candle stick patterns. I spend at least a month trying to trade off of things like doji's with at least a 60% tail to body ratio and the like. However this led me to frustration as every hour I would check the charts and look for a doji to trade on and sometimes this would only happen once in 24 hours.
Being as I was not wanting to risk a huge amount of dollars on one trade, I wanted to be able to make about $100 a day from 1 or more trades a day.
As I got tired of waiting for doji candles I started to research other candle stick patterns to trade on found some interesting patterns. However trading most of these patterns also meant a lot of waiting for hours to make a trade.
I realized I needed something more...more info, more training and possibly a mentor to become a successful full time trader. After months of trying to learn trading I was pretty frustrated and then the btc drop from $20,000 down to $10,000 happened.
All I was able to do was but the btc I held into usdt and watch and btc dropped. This was a time where I though crypto was just going to completely collapse.
From this experience I learned that being able to short is a requirement to trading effectively and the intitial exchange I used for crypto did not have a shorting option. So this is when I did more research and found bitmex.
This exchange did allow shorting of btc and was relatively simple to use. So my next stop was furthering my education of trading with patterns and charts.
One of the things I heard of a lot in my previous research is a 4 to 1 trading risk to reward ratio. This intrigued me and I wanted to find out more about it. However, this seemed hard to do and it was like it was being hidden by pro traders because they would say "this looks like a 4 to 1" however they would not go into much detail about why it looked that way.
It could very well be that after many years of trading one is simply able to see the pattern immediately, however for us newbies how were we supposed to know when it was a 4 to 1. So I set out on a mission and somehow stumbled across the Elliot Wave Principle.
I got one book, Sentiment in the Forex Market...read it and it referred a lot to the Elliot Wave Principle book as well.
So I picked up that book and did a bunch of reading and tried to take it all in as fast as possible and it definitely helped me to start making trades.
The patterns are simple...sort of... especially in the beginning it took me some time to realize that a pattern that looks like an impulse was starting with waves 1, 2 and 3 might not actually be the start of an impulse but an ABC pattern. Essentially I learned that knowing where the pattern in on a 1 day chart and then going down to a 1 hour to map the patterns was like being able to read into what is going on with the trends.
The Elliot Wave Principle was hands down been the most powerful thing I have learned. And I wish I started learning it first, before even opening a forex or crypto account.
It has probably taken me a month of learning Elliot and doing trades to really get into the feel of the market and it has been well worth it.
As for learning the Elliot Waves I highly recommend the Elliot Wave Principle Book by Frost and Pretcher.
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