A thought came to my mind and I decided to check whether it’s true or not. I think that I should be neither a scalper nor a long-term trader. I mean that I should combine these two popular approaches. I tried this new approach for me and I like the outcomes. I increased my ECN depo to 347 for less than a week.
In scalping my average trade lasts from a minute to no more fifteen. Other trades of mine are long-term and I can hold them for a relatively long period. By the way, by scalping from at least a minute I mean the broker’s requirement of holding a trade for at least 60 seconds. It suits the broker and me.
How long did you hold your trade?
Once I was holding a trade for 8 hours. As a rule, I don’t have so much patience for this. That time I simply forgot about it and it luckily stayed in the green all the time.
That’s a rational thing to combine long-term trading and scalping. You have finally come to what professional traders do. They often combine these popular approaches to trading and it’s a good thing that you have discovered it. It shows that you are demonstrating progress.
I think that it makes sense to gradually drift from traditional assets such as currencies and indices to cryptocurrency. My belief in it is getting stronger.
Why do you think so?
I’m not an expert, but nevertheless, it’s clear to me that there’s something wrong with the global economy. I don’t think that the US inflation may go down a lot in the near future. What’s more, there’s a huge uncertainty about the American debt. I really wonder what the US government may do with it. I see a big uncertainty on the market generated by the Federal Reserve. It feels like the major US bank has no idea what to do with inflation and the scary debt. I don’t see signs of a confident emerging trend on any major pair. Instead, I see everlasting cunning ranges.
That’s why I think that cryptos are more promising. These are assets of a new generation that don’t have to do with inflation associated with fiat money first.
Don’t bother your head with the American debt. It’s the US problem. It’s up to them to handle this issue. Your task here is to earn on anything you can. Market makers will be so kind to let you earn money if you are attentive enough to timely discern where they intend to do and where they want to send that foolish crowd. As for cryptos, we still don’t know the truth. They may be another bubble that may burst out soon. I don’t want to say that you shouldn’t earn on cryptos, but avoid investing all of your money in them. Diversify your capital and don’t give up traditional assets. It’s still possible to earn on them.
I no longer hesitate in cryptocurrency. I’m already 100% assured that these are assets of the future. Perhaps, they will not entirely replace traditional fiat systems, but I think they will exist alongside.
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The recent impressive tumble of Bitcoin that deprived many of traders of 4 billion gives me more grounds to ascertain that it’s just another speculative bubble. They say it’s just a correction. How on earth could be like this? It’s over manipulative and speculative “asset”.
It feels like it’s hard for you to take these new changes for granted. Don’t you remember spectacular dives demonstrated by EUR/USD this year following Fed meetings. I guess we saw no less points in the abyss. Cryptos don’t belong to the traditional financial world, so it’s no wonder they follow their own rules.
I also don’t perceive cryptos as some exotic thing. For me these are full-fledged assets. At least, they are good for trading. Last week I scalped BTC and earned $75. I find it very convenient to scalp BTC, but when it comes to long-term trading, one needs to be cautious. I want to catch a big wave of BTC and earn on it. I need to wait. The recent correction was so huge and kicked so many folks out of the market. So, we should think twice before opening a long-term trade on this asset.
Yeah, this asset is very cunning, which is quite typical to pure speculative assets. I should confess that my curiosity to cryptos grow. I haven’t developed my final apporach to them yet. I still prefer traditional assets but I don’t exclude an idea of algorithmic crypto trading.
I opened an ECN account with this broker and deposited $320. I’m going to use scalp BTC/USD and BTC/EUR with this broker. Besides this I will hold long-term trades on cryptos here.
The more I trade it becomes more evident for me that cryptos will not disappear no matter how they are suppressed by governments as well as major banks. They will 100% survive.
I agree with you. Last week I had a big desire to trade cryptos. Unfortunately, I had to leave and the whole week was spent on other things. For this time cryptos grew and I lost a chance to enter the market.
You could have placed pending orders before leaving.
Sometimes I use pending orders, but I’m not ready to use it for cryptos because these assets are too unpredictable for me, although my interest in them has greatly grown for the last time. As of now I trade cryptos manually. I think I should create a new trading system specially for cryptocurrency.
As I told, I intended to scalp cryptos on my newly-opened ECN account, but then I decided not to do that. It simply became evident to me that cryptos are not the assets ideally suited for scalping. I think that it’s possible to trade them on M5-M15 timeframes, but I think that H1-D would be better for cryptos. I will scalp something else on this ECN account. Perhaps, it will be some currency pairs, but I will work with cryptos on the timeframes mentioned above.
This time I traded BTC on H4. I had a range and entered the market several times and it all ended up successfully for me.
I agree that cryptos are very good for range trading, but be cautious. Look at Bitcoin’s weekly chart.
You see that the price stays near the upper line of the channel. It may go downwards, rebound from the lower line and return.
Look at the monthly chart.
Once again you see the price at the same place, close to that level. I think that it’s very crucial when two important timeframes coincide. It’s the chance to catch the very moment of a big wave that may last even half a year if it’s going to be a continuation of the flat movement from 65000 to 29000. If you look at the any of these two charts, you can calculate that it took the asset half a year to cover the distance to the opposite side of the channel. However there may be an alternative scenario. I showed it on the monthly chart. It may descend from the current position, rebound from about 46000 and then return to the top where it may either break through higher to skyrocket higher and show new historical highs or make a false breakout and then there may be several scenarios, such as a tighter ranger between 65000 and 46000.
Thanks for this tip. I often forget to view weekly and monthly charts. I will be careful to catch the very beginning of a new wave.