If there was a way for newcomers to the stock or crypto market to take a survey and ask a single question, I would ask this:
“What should I do to close a trade successfully?”
I am convinced that the vast majority would answer that in order to have a positive result in a trade you need to choose a good trade entry and exit point.
The so-called "near-marketers” have always known this and tried to use it to their advantage. Technical analysis only described patterns and levels but did not always give answers to the question of when to open the trade, how to accompany it, when to close it, and how to manage the portfolio. As a result, new indicators were invented all the time, and, of course, those that showed entry and exit points directly on the chart were particularly popular with beginners. By the way, I’ve already told you why indicators don’t work in my article “Use of charts and Indicators in trading”.
Opening trades based on indicator data or trader signals from VIP channels makes you a one-track mind. Your only responsibility comes down to only pressing two buttons: BUY and SELL.
And if trading were that simple, we’d all be sailing our own yachts on warm seas, sipping expensive champagne. But the reality, and more importantly the statistics of beginners’ success is inexorable:
Most beginners lose more than they make in the exchange.
In addition to entry and exit points, the following factors are much more important for a trader:
Based on these factors, the main key to a successful trading strategy is to have the right mindset. More specifically, to have the answers to the following questions:
There are several different tools on the Resonance platform that allow new traders to get a deeper insight into what’s going on in the market. Besides, they are constantly being improved and new tools are being developed all the time.
You can find out more about them and read a detailed description in the “Tool section”.
What these tools have in common is that they each contain some actual values, and numbers that can be twisted, compared, and contrasted in various ways. They cannot tell us with 100% probability where the price is going. But we try to squeeze as much information as we can out of the data that exchanges can provide to ordinary participants.
But it is also a mistake to focus only on the actual values (e.g. Market Stat and Market Delta values). The same figures can be interpreted differently if the price behaviour is different or if volumes are increasing or decreasing.
So, our goal as a community is not only to give beginners some trading strategies, but also to teach them how to build a logical chain. After all, sometimes the market situation changes very quickly. Sometimes iron-clad arguments, for example to go long, can be met with the strongest counteraction 15-30 minutes after opening a position, causing the trade to be closed completely or even to turn in the reverse direction. Without the ability to adapt, without understanding when to raise a stop or fix part of the profit, you will always take a loss that could have been avoided.
Great news! Bidsbee, a social trading platform with a copy trading functionality, is LIVE now! Its trading experience is truly exceptional, offering advanced tools that most CEXs can’t match. Copy trading is a great way to grow a trading community and monetize trader’s skills.
Meet the official partner of Resonance – GoodCrypto’s crypto trading app. Find your bonus in the article.
In the article, we analyze the concept of volatility analysis and its use in trading. Volatility allows you to evaluate how justified the entry is, the optimal distance to the stop, and also estimate possible targets.
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