Bitcoin is consolidationg further at around 35k while ETH has rejected it’s all-time high. Will we see moves into the green again today?
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How the scan the markets 20.01.2021
Author: Yves Hofstetter
I am the Owner and Founder of Yves talks Bitcoin. My goal is to provide sensational input and educational service to traders and investors all around the world. This blog will focus on trading and investing in cryptocurrencies with an emphasis on Bitcoin.
A beginner-guide to trend-trading cryptocurrencies
Trading cryptocurrencies can be a nerve-wracking experience. It involves you being busy doing your due diligence all the time, but you probably are scared off by the rate of volatility that cryptocurrencies offer. This guide will educate you to do the right thing and trade clear patterns that dramatically reduce your risk. Let me take your fear.
Indicators to use for this strategy
Before we get started, we need to setup up our indicators. Indicators will help you find a reference point on the chart. You should not use them to find trades. Indicators are called Indicators because they only indicate, they will never show you the perfect trade opportunity. Keep that in mind. The combination of indicators, however, can point you towards some gem trades. Indicators we need are:
- Moving Average 10
- Moving Average 20
- MACD (Moving Average Convergence Divergence)
Identifying the trend
Trading is all about reducing your probabilities. Before we start identifying the trends, let me point out that you should start looking for trades not to take. By doing so, you trick your head into looking for options that fulfill the criteria that we will be defined below.
In theory, your chart looks somewhat like this. The black line indicates price movement, the blue line is the moving average of 10, the red line is the moving average of 20. The space between MA 10 and MA 20 is commonly referred to as the cradle zone. The cradle zone is where the magic happens.
Only knowing that so far, I bet you could go out there and already make some smashing trades. However, continue reading to get some more tips on how to spot entries and prevent risk.
Finding the entry
The red arrow indicates entries.
Finding the right entry as a trader is not easy. If the price is trending and moving into the cradle zone or scratching the MA 10, this could be the entry. Do this check-list before entering.
- Identify the trend.
- Price falls into the cradle zone on the entry timeframe.
- Check on the higher timeframe for trend confirmation.
- Wait until you find a small and green candle.
- Enter when the price breaks the high of the candle.
Prevent risk
Use as a stop-loss. A common rookie mistake is to not use one. Just because you got the strategy, it doesn’t mean that you can not lose money. Set yourself a target and a stop. Ask yourself what you are willing to risk your portfolio (1 to 3% is standard), as you define how much you can afford to lose on your trade, you know your target already, the target defines what you want to accomplish while making the trade. So if you are willing to lose 1%, set your target to 1% too. If the price hits your target, move your stop-loss to your entry value. This reduces the risk of the trade going negative and you losing any money. After that, you have only profits to take. Use your target to trail the stop-loss. So if the price goes for another 1%, adjust your stop. If the trend were broken, you would be stopped out with a 1% gain.
To conclude, trading needs an edge. Find your reference in the market and stick to it. Being distracted by the noise in the markets is never helpful nor beneficial for your portfolio. Try on keeping your money, stop trying to make more. In attempting to preserve what you have, you will start taking the profitable trades.
If you want to find out more about trading, check out my content on various platforms. I also offer one-to-one mentoring, so if you are interested in hopping onto a call with me for 15 min for free, I could help you layout how to approach this the best.
Check my other channels for more content:
My YouTube:
https://www.youtube.com/channel/UCuNA5jnimv3erEJ1VmUBSoQ
My Twitter:
https://twitter.com/aversionfall
My LinkedIn:
https://www.linkedin.com/in/yves-hofstetter-9752b6202/
Or support me directly on Medium:
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How to scan the market 19.01.2021
Is Ether heading for new all-time highs?
Asset-classes worldwide are increasing in value, while every inflationist country is pumping more and more money into its communities, many will nonetheless lose their jobs. All this causes the gap between poor and rich to become as straightforward as it has never been before. Money is printed and handed out as if the world would not understand the concept of exchange anymore. Lockdowns and the pandemic have driven us into a need for cash that has never been experienced like this ever before. Our addiction and demand for money are growing by any minute. But what can we do? How can we prepare for when everything is going the other way?
Discipline.
Our world needs discipline. We have to get rid of our IOUs and never go down this path ever again; we need to part our way with the Inflationist mindset dictating our economy and find back to a path of economic naturalism. Fiat and debt-based consumerism have been ravaging our society and environment for ages. We have been shacking the money tree senselessly. The shaking has been good fun and very addictive. We had to shake harder, and the harder we shook, the more money came out, and everyone was happy. People have been offered debt as if they were candy, and since many did not have the option to be disciplined, they fell for it. But who can blame them? The money tree has been around since we are all born. This is normal.
We need to realize that shaking the money tree has cost us our financial independence. Inflation of our fiat currencies has eroded away the hard-working purchasing power and has left those with millions, now with billions. Understanding the monetary system we have nowadays is nearly impossible. Banking and complicated finance have made it almost impossible for a non-academic person to grasp its importance. For the first time in history, you need at least a Bachelor of Finance to explain money to someone else. Money, the one thing that made a living together and exchanges possible.
Asset classes like Bitcoin or other cryptocurrencies have been very educating in that sense. Thanks to Bitcoin, many enthusiasts are very aware of these problems. However, their mentality has shifted, long-term understanding and logical arguing have helped them to see that the dualism between currency and assets are unnecessary. Those who study Bitcoin intrinsically and based on its importance as an asset class or a monetary system agree that it fulfills all the needed criteria to be a currency capable of being a fully functioning economic system. Even though Bitcoin has opposition that argues differently, Bitcoin is here to stay, and they have no control over that fact.
Bitcoins’ growth rate is explained easily with everything I have stated before. With a withering economy and politicians that believe the government must be the golden knight that helps everyone, Bitcoin offers a peaceful and excluding experience of how the world’s monetary system has been working for ages and hopefully for generations to come again. Investing in Bitcoin not only feels like investing in our heritage but also in the future. It is a safe haven of mad consumerism and even more ludicrous Inflationists.
For further posts on that kind of topic, check out my other ones:
The battle against consumerism – Bitcoin:
https://yvestalksbitcoin.com/2021/01/06/the-battle-against-consumerism-bitcoin/
What makes bitcoin special?
https://yvestalksbitcoin.com/2021/01/04/what-makes-bitcoin-special/
Why is Bitcoin bullrunning?
https://yvestalksbitcoin.com/2020/12/29/3-reasons-why-bitcoin-is-bull-running/
Check my other channels for more content:
My YouTube:
https://www.youtube.com/channel/UCuNA5jnimv3erEJ1VmUBSoQ
My Twitter:
https://twitter.com/aversionfall
My LinkedIn:
https://www.linkedin.com/in/yves-hofstetter-9752b6202/
Or support me directly on Medium:
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How to scan the market 18.01.2021
We are starting the week with green charts. Bitcoin is consolidating whereas all the Alt’s show some good moves. Are you trading?
How often have I heard the sentence, “we need inflation so prices can increase”? Uncountable times. Inflation is seen and understood as a good thing in many economists’ and politicians’ minds. Inflationists institutionalized our economies for 100 years and have twisted the average consumer’s mind. The indoctrination of the inflationist mind has blinded the consumer and robbed him of his principles. Let me explain.
The psychology behind the Inflationist economies is that the government tries to prevent economic recessions by inflating the domestic currency to help people that need money. Money printing since 2008 has not stopped. The fact is that since the recession of 2008, we never fully recovered. In 2008 we started to realize how easy it is to print more money. Quantitative easing and negative interested rates basically led to the government’s movement handing out money for free to the public because “they needed it”. Do not understand me wrong here. Helping people is very good. However, that should not be the only action taken. The government is effectively doing by giving out money to everyone that asks for it is making everyone dependent on the government. We become addicted because as soon as a problem arises, we run to the government and ask for help. The government is happy to hand out money since that means that they can effectively control everyone by doing so. This has been going on for too long that consumer nowadays does not even understand the concept of money. You need a Bachelor of Finance to grasp the complexity of the markets created around the inflationist spirit.
By inflating the money supply, the long-term value of the money decreases, not only reducing your purchasing power but also the promised increases in salary loses its value. Inflationists have managed to teach a contradiction and make it seem as if it would be normal. The human exchange has never worked on Inflationist money schemes. The most recent example for that would be the Venezuelan currency that hyperinflated. Another good example is the Weimar Republic. Inflation is preached as the only possible solution to a problem that needs a far more complex solution than just inflation. Governments effectively rob you of your financial freedom and take away your purchasing power. They make us reliant on them and call it normal.
This is no secret, though. Investors as traders know this for ages and see investments as a store of value that might even promise appreciating purchasing power in the future. However, ordinary folks that can not afford investments are left to the inflationist greed.
Bitcoin promises a solution by unifying all the properties of an investment with the ability to be a medium of exchange. But many inflationists argue that the volatility of Bitcoin is a bad deal in comparison to the fiat currencies since they offer more price stability. However, if you look at the facts, while Bitcoin promises long-term appreciation in value, fiat currencies offer a depreciation in value in the long run. I ask you again, what sounds like a better deal to you? Bitcoin is not the perfect solution to all our problems, and I respect that, but it still is an alternative that offers a traditionalist approach in comparison to the current monetary system we are bound to use. Inflation is just as natural as deflation in a market and human beings need to understand that they should not try to change that. Whenever we tried to change the economies’ natural cycles by installing inflationary tools, we drove our economies against a wall.
Bitcoin matters because it will help educate everyday people and help them find the right way on how monetary systems should work. Imposing economic tools such as inflation are short term solutions to short term problems, and they should be regarded as such.
Printing more money and packaging a new stimulus packet are the solutions to all our problems in the inflations mind. But what the world actually needs is discipline if it comes to money.
For further posts on that kind of topic, check out my other ones:
The battle against consumerism – Bitcoin:
https://yvestalksbitcoin.com/2021/01/06/the-battle-against-consumerism-bitcoin/
What makes bitcoin special?
https://yvestalksbitcoin.com/2021/01/04/what-makes-bitcoin-special/
Why is Bitcoin bullrunning?
https://yvestalksbitcoin.com/2020/12/29/3-reasons-why-bitcoin-is-bull-running/
Check my other channels for more content:
My YouTube:
https://www.youtube.com/channel/UCuNA5jnimv3erEJ1VmUBSoQ
My Twitter:
https://twitter.com/aversionfall
My LinkedIn:
https://www.linkedin.com/in/yves-hofstetter-9752b6202/
Or support me directly on Medium:
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How to scan the market 15.01.2020
Bitcoin has rejected 40k yesterday. Will we see a smash-thorugh today or is the Alt market firing up first?
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Why should you NOT buy Bitcoin
I feel the storm, a breeze whips my face, the wrath of the community is entering this post. I am scared, I am trying to run, but the angry mob of Bitcoiners chases me, hunting me down, help me…
As many of my followers know by now, I am a Bitcoin fanatic. This post has no intention of degrading Bitcoin or any other cryptocurrencies. Because I know Bitcoin, believing that it is not for everyone is a crucial part of my understanding of it. That Bitcoin overtakes the world and will be the only monetary system that exists is utopic and is not very likely to happen. The mixture of institutionalised monetary systems and hard-to-produce currency is what our world needs in my opinion.
Many of you might be thinking “So, what is the point of the title?”, and you are right, this article is not dedicated to why Bitcoin is great.
Let us dig into some reasons why you should not buy Bitcoin.
Uneducated decisions – Inform yourself. If people do not know about Bitcoin and you decide to invest into it, you are likely to underestimate the risk it brings with it. Too often people jump onto the FOMO train thinking “ah, I know the volatility and the risk”, these are the ones that are most likely to be crying the loudest as soon as they get spit out with less money. Understanding Bitcoin means that you must educate yourself.
If you are a hater – Every Bitcoiner can agree on the fact that Bitcoin haters get punished by not investing in it. The more days go by the more silent the Bitcoin hating community grows, the higher the Bull-run goes to more people understand that being against Bitcoin might not be a good path. However, even when everyone owes Bitcoin and the world is living happily some haters would rather prefer to not have any, which is fine, more for us.
If you cannot afford it – This is an obvious one, people that do not have the money, should rather stay away from Bitcoin since it is a high-risk investment. Bitcoiners seem to have the most problems with that since many take up mortgages or even sell houses to invest. This is not a very smart thing to do in my opinion. Losing money hurts, reduce the damage by reducing your order size.
If you have a hurry – Never ever rush into a trade. These were the worst trades I took. Always, take your time, best to have a routine on when you are investing or trading, everything else will make you regret your decisions very hard.
No time – There are two things you need to trade or invest successfully into cryptos. Money and time, both a luxury to have. If you cannot afford both, best not to stress about having cryptos too. This is just a recommendation.
Honestly, this was one of the hardest articles to write so far. I can think of a thousand reasons on why you should have Bitcoin and many of them make much sense, but my head can not think of many reasons why to not have Bitcoin. Add up if you can think of more!
Wrapping things up, I understand that some people can not have Bitcoin because of financial reasons or simply because they do not have the time or the nerves to wrap their heads around it. This is very fine for me since it is your choice to not have Bitcoin at the end of the day. I can tolerate people not willing to buy Bitcoin because out of scepticism or fear and I accept negative haters too, because they are public relations, there is no such things like negative PR. Thank you haters.
If you want to educate yourself more about cryptocurrencies and trading or investing, check out my website and my YouTube. I even have a Podcast on Spotify in which a do a daily commentary of my understanding of the markets, be sure to check it out and leave a follow.
My YouTube:
https://www.youtube.com/channel/UCuNA5jnimv3erEJ1VmUBSoQ
My Twitter:
https://twitter.com/aversionfall
My LinkedIn:
https://www.linkedin.com/in/yves-hofstetter-9752b6202/
Or support me directly on Medium:
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How to scan the market 14.01.2021
Bitcoin and most of the Alt’s have confrimed a uptrend after the pullback beginning of this week. This is fantastic news and really makes me feel bullish! Hope your guys are trading.
No magic, just the way I do it.
Investing and trading have become my passion. The sheer amount of time I have invested in Bitcoin and other cryptocurrency markets is not comparable to anything else I did in my leisure time last year. The lockdown really gave me the perfect opportunity to sit down, find an approach, and learn it as good as I could. By doing so, I did not even realize that I created my own little training summer camp. The training camp result was an approach that worked and aligned with my specific understanding of how the cryptocurrency market performs. Trading and investing give me a long-term perspective and the urge to create a better future for me and everyone around me, this shift in my time preference was made by my approach.
This is not the “holy grail” of trading but merely a guide to help you find your own approach to the market. What I want to give you in this post is a starting point, from where you can start working yourself through the market.
Use this guide, write it down, copy it, and reuse it. The more people that know about this, the fewer people spend money on overpriced courses that teach a strategy that might not even be understandable for you. Let us dig into this.
- Shift your time preference – Trading and Investing is not a “get rich quick scheme,” if you are here intending to make money today to buy your Lambo tomorrow, you are probably better off using that money elsewhere. If you think that you can quit your job tomorrow, you could not be more wrong about the market. Most think this way, underestimate the risk and get spit out by the markets empty pocketed very in no time. The longer you stay in the markets, the higher your chance is to turn up again in the long run. Learn to increase the probabilities of success, continue reading, and get some tips on achieving this.
- Due diligence – Back to school! Do your homework, be sure to understand what you are doing and investing in. Learn how to handle the tools and indicators you are given before making your first purchase. “But the cryptocurrency market is so complicated,” some of you might be thinking now. But that is how it works with all investments. If you want to buy a house, you first want to check it out before moving in. Since we have sources like YouTube or Reddit, learning about crypto can be good fun. You just need to be up for it. Understand Bitcoin, start there, and see if you really can learn about what it is and how it works. Find out if you can do the same with other projects. Having basic knowledge about what the market is will never hurt.
- Consistency – Turn up every day. Look at it as if you would be working or studying something. Taking a break is good and needed, but being successful with anything means you have to turn up again, overcome your comfort, and scan the charts daily. Bringing the routine into your approach is essential. It will help you to get a relevant perspective on the market.
- Security – Dig yourself into this. Cryptocurrency exchanges and hot wallets (wallets that store your money online) get hacked often. Be sure to keep your money safe. Dealing with cryptocurrencies is like becoming your own bank. Every bank needs a vault. A cold storage wallet can help you out here for sure.
As we defined before, your time preference needs to shift, kill the “oh I need it now” mentality. Overcome your inner-slacking-you, do your homework, and do it consistently. Learning how markets work is like learning a new language. It has its own vocabulary, structure, grammar, and culture. Accepting and tolerating is the key. Forcing your own perception onto something much bigger than you makes no sense. Go with the flow and become part of it.
It is crucial that you got those 4 points ticked off before running into the battle. Let me give you some tips on how you stay in the markets for longer.
- Find your exchange – An exchange is like the dictionary to the new language. The easier the dictionary is for you to understand and find what you need in there, the faster you are becoming in mastering the language. Find an exchange that suits your need. Do you want exposure to a lot of coins? Do you want an easy setup that just gets you started? Do you want an exchange that makes bank transactions most straightforward? Find your questions in this regard, and be sure to choose wisely. An exchange can make or break your experience trading or investing.
- Swing or Day Trading or just investing? – This question is fundamental because it will have a direct impact on your strategy. Be sure of what you want and stick to it. Having consistency in your approach is paramount in this stage, be sure to know how much time you are willing to sacrifice here.
- Never invest more than you can afford to lose – Investing more than you can afford to lose is never a good idea since you will lose for sure, especially in the beginning. This is a common mistake. Moreover, over-leveraging is the number one reason many newcomers leave the markets with heavy losses. Do not go all-in on a single coin. That mentality gets you nowhere and is best compared to gambling. Many trading critics argue that trading is just gambling, and it is if you go all-in on a coin. Diversification is vital. Get yourself a good portfolio of promising coins to be exposed to a greater variety of moves and reducing your risk of losing money.
- Use a strategy – Have an approach. I often get the answer, “oh, I can sell before I am in negative anyways,” this is an approach to get wrecked fast but not to trade or invest. Use tools such as the stop-loss or indicators (or both combined) to find entries or exits while trading. Cryptocurrencies do not behave like stocks. Losing 20% in one day is often seen. Moreover, a strategy keeps you from being too emotional. Emotions are not good while trading. Stick to your guns. That is the plan!
- Plan your trade and trade your plan – This tip combines consistency and experience and makes you unstoppable! No, seriously, have a plan in place. It is much easier to comprehend what you were doing and thinking when you have to look back onto your trades and judge yourself for not being consistent. Having a plan in place makes it much easier to buy and sell and naturally gives you more confidence that transforms into the experience.
- Review your trades – Judging myself is a fixed part of my routine. Sounds weird, but it is the best way to improve and to trade or to invest. I screenshot every trade I made, and I write down my plan I had in place at that time. Coming back at the end of the week and judging myself on my bad trades became very important. A positive trade with a negative execution is a negative trade with good execution is considered a good trade.
- Do not trust anyone when it comes to crypto – I see too many people falling for scams. Double-check everything, be sure that the news you are checking is official. There are more scammers out there than people trying to be honest. Never trust anyone when it comes to your investments.
- Knowing when to stop – Overworking yourself and trying to get every possible investment opportunity out there will not help you become better. Find the profitable trades, execute them, and leave them be. Trust your strategy but also listen to your inner self. Breaks are important. They help to process and reflect on your accomplishments.
By following these steps, your crypto journey will be more likely to be a successful one. Good investors are investors that plan to stay in the market for a long time. Many tools help you to accomplish this, so why not using them? Thinking that you know everything better might work for you in real life, but crypto can be ruthless, and people who know things better tend to fall harder. Do yourself a favor and use a cushion before falling. Standing up first will be much more comfortable that way.
If you want to follow me on my journey through the cryptocurrency world, be sure to subscribe to my blog and my social media accounts! Please leave a like or a comment if you enjoyed my content.
My YouTube:
https://www.youtube.com/channel/UCuNA5jnimv3erEJ1VmUBSoQ
My Twitter:
https://twitter.com/aversionfall
My LinkedIn:
https://www.linkedin.com/in/yves-hofstetter-9752b6202/
Or support me directly on Medium:
Yves talks Bitcoin 