OK, quick & dirty, with lotsa pix for the n00bs. Pardon the mess, and if this helps, remember to share some love on the upvotes (hidden way down below all these images…
======BE WARY OF UPTRENDS:======
The chart above is DigixDAO (DGD) on Binance. If you’re trading and you come across this, your instinct is probably to go full-in on this amazing uptrend. Why? Look closely: good movement, great moving average indicators (the red & purple lines) - and it’s curving almost exponentially (going vertical) near the end, which means a massive & rapid increase in price.
What could go wrong?
OK, same chart, a few minutes later! So lesson #1, never, ever buy a vertical uptrend, there’s ALWAYS a reversal.
====== ALWAYS CHECK LONG-TERM TRENDS: ======
This chart above is Walton Coin (WTC). Aside from being repeatedly called a scam in the forums, it appears that this coin has a decent uptrend happening in the 5-min interval chart. Should we put money into this? Look below.
In the longer-term 15-min chart, you’ll see at the “uptrend” was a 6-hour reversal of a much longer term decline in value. You could have actually made money with WTC in the short-term with this chart, but it didn’t actually increase much in value during the uptrend and ultimately this coin is on the way down, so avoid it.
====== WATCH OUT FOR PUMP & DUMPS ======
The chart above for Gifto (GTO) had no major activity for over 12 hours, and suddenly it shoots up into the stratosphere.
Should you risk it?
I included this screenshot so you’d see what a Pump & Dump actually looks like. This is where a bunch of folks get together on a message board, agree on a date & time to buy a particular coin, and the sudden burst of activity makes it shoot through the roof.
However, it happens so FAST that unless your part of the P&D group, you won’t be able to take advantage of it. On the message boards, not only to they agree on a buy time, they also agree on a sell time/price - which means normal traders hoping to cash in on it are the ones who get left holding the bag.
Notice how the price immediately drops? That’s because all the “pumpers” have already sold, now it’s just normal traders who get hit with the resulting drop in value.
====== BUY THE DIPS, NOT THE SHOOTING STARS ======
Wow, DigixDAO is on a tear today (above)! It’s up 47.36%, which is really tremendous for a single-day increase in value. It’s making a TON of money….for somebody else. Since it’s already up that high, it’s unlikely that you’ll see much more of an increase, but its HIGHLY likely that you’ll see it peak and drop by 20% before tomorrow.Instead, take a look at Ripple (XRP) below. It had massive gains earlier this week because of the new Western Union partner announcement, but right now it’s down 2%. Since you’ve done your homework on coin research, you know that Ripple will probably be in the news again soon, and it’s reasonable to anticipate it making good gains in the near future.
OK, that’s all I’ve got for today. None of these are “perfect” examples, but hopefully this will give you a general idea on some common pitfalls to avoid. Remember, do your research, buy the dips, always set your Stop-Limits, and good luck!My standard disclaimer: cryptocurrencies are highly volatile. Never invest more than you can afford to lose. This post contains personal opinions only, and not financial advice. I take no responsibility for any financial decisions that you make.
Hope it was helpful ,
Support my crypto community:
Quora : https://qr.ae/TWNhJ6
HyperSpace : https://hyperspace.app/u/5d1a0653b1f4fb00072e6f67
Uptrennd :
https://www.uptrennd.com/user/ndg4na
Instagram :
https://instagram.com/cryptohacks.in?igshid=1dfqiiywub1lb
https://instagram.com/lifewithblockchain?igshid=1nbzgocmgp79f
https://instagram.com/isarang2510?igshid=in858pvihr7
thanks for reading :)
Nice thing you shared for all the traders
I am glad you liked it thanks :)
Congratulations @sarang25! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :
You can view your badges on your Steem Board and compare to others on the Steem Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPVote for @Steemitboard as a witness to get one more award and increased upvotes!
I am honored and thanks a lot for recognition :)
Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
https://www.quora.com/What-are-the-most-popular-mistakes-in-Crypto-trading
Thanks ;)