I don’t think that everything is so bad with cryptos. I guess that’s just another correction.
Currency trading is more complicated than crypto trading because you are expected to take into account a number of fundamental factors, not to mention technical analysis. However, currencies are far more reliable assets than cryptos. If cryptos are just another market bubble, currencies will survive anyway because they are regulated and backed by governments.
What’s better for trading:EUR/USD or USD/CHF?
I think that you should stick with USD/CHF. It’s much easier to trade than EUR/USD. The latter can be very cunning and bite you painfully. What’s more, USD/CHF is more liquid. Therefore, it’s more profitable. Of course, it increases potential loses, but it’s compensated by better predictability of this currency pair. USD/CHF and EUR/USD go in the opposite direction. So, it’s possible to trade them both - you sell one and buy another or vice versa, but since you are a beginner, I advise you to trade USD/CHF.
Your advice about USD/CHF was right. I tried EUR/USD last week and was lucky to exit my trade with a minimal loss. Once I shifted to USD/CHF with Olymp Trade, I managed to earn $50 for a week. It feels like it’s much easier to trade this pair than EUR/USD. I see that these pairs go in the opposite direction but I don’t have a desire to trade them both, although it seems so easy to open two opposite trades. EUR/USD simply gave me a negative impression, so as of now I would like to stay away from this currency pair. I think that I should try NZD/USD and AUD/USD. In general, I like currency trading with Olymp but I feel that I should be very cautious when exploring this field.
It feels like you have a sort of phobia about EUR/USD. Of course, this currency pair is not very predictable compared to other financial instruments, but it’s very liquid and one of the most popular assets in the world. Of course, you have the right to reject it and shift to something else, but I strongly advise you to explore EUR/USD and try to understand its behavior. You can do it on a demo account. In this case, you will lose nothing, while gain some useful knowledge having to do with currency trading. Sometimes there’s only one asset on the market where there’s a suitable entry point and this may be EUR/USD that you don’t like. Why not?
I think that it makes sense to get back to EUR/USD at least on a demo account, but now I’m still under a negative emotion after this pair.
Over time, once you gain enough experience, you will acquire a capability to take your losing trades easier. A certain percentage of losing trades is what every professional trader has and you told that you managed to avoid big losses and even earned on USD/CHF. Keep it up and you will perform even better.
I have recently opened an account here. My greatest passion is cross currency pairs. This week I was trading them. To be exact, I was trading NZD/JPY, AUD/JPY, EUR/CAD, AUD/NZD, NZD/CHF, GBP/NZD, and so on.
I like the execution here and the web platform. Earlier I traded on Metatraders only and I was prone to underestimating other platforms. However, once I tried this web platform I changed my mind. However, I wish they could offer a richer choice of multipliers, but in general I’m satisfied.
For the last time I have become more interested in cryptos. I have never crypted them. What strategies do you use for them?
I don’t know. I have recently intended to trade cryptos but then changed my mind. I heard that technical indicators don’t work on cryptos.
I have never tried cross pairs. Perhaps, it makes sense for me to try them. I’m tired by pairs with USD. I would like to try something different. It’s a good thing that you reminded me of their existence.
Of course, you should try cross pairs. I also came to them because I wasn’t satisfied with trading pairs with USD. I can’t say that it’s so much easier than trading USD pairs. It’s different but I like it.
I don’t trade these pairs only because they are less liquid than majors, although it also seems to me that they are easier to trade.
I don’t think that there are assets incompatible with technical indicators. I will test cryptos on a demo account. I hope at least Stochastic will work.
olymp trade I have never used their services, I also know they are options trading but I think it would be better to trade at forex broker
So, I devoted the whole week to cryptos. You know the broker doesn’t offer a very rich choice of cryptos. Everything you can trade from this category is represented by Bitcoin, Euthereum, and Litecoin. On the other hand, as I know, these are the most liquid digital coins and respectively the most profitable cryptos. My interest to cryptos keeps growing but I realize that I can’t learn specific features of all currently existing cryptos for a short period. Nevertheless, I hope I will catch up with all of this soon.
Did you manage to earn something on cryptos?
Yeah, I did. I would like to say that I deposited $350 specially to test cryptos. I traded all three available cryptos: Bitcoin, Ethereum, and Litecoin. At first, I had no idea what amounts to choose for my test trading. As for multipliers, here everything is much simpler - I can choose between 5 and 10 values. I chose 10, while 5 is the only available multiplier value for Litecoin.
I decided to invest $50 in each and trade and choose multiplier 10 for all assets, except for Litecoin.
I can say that Bitcoin and Ethereum are good for long-term trading because they are very liquid, while Litecoin would be good for scalping because I need to wait a little for a profit. I earned $35 on all three assets. I didn’t hold trades for a long time, I just wanted to test. I became apparent that a fixed amount here should be twice bigger. I think with a $100 fixed amount long-term crypto trading makes sense, while $50 would be enough to scalp on Litecoin.
As for indicators, Bollinger Bands are good for range trading here. As for a trend movement, it’s clear that cryptos keep going to the heaven, but when a digital coin is in a range, it’s a very cunning thing and that’s the case where you may require a prompt from a corresponding indicator. By the way, Stochastic also works and it seems to me it makes sense to use this oscillator on higher timeframes such as H4 and D because there it shows reversals, at least it seemed to me so.
Thanks for sharing your experience. I want to try this combination of Bollinger Bands and Stochastic on cryptos. I think I will do this already this week.
I tried Bollinger Bands on Litecoin. It met my expectations. I was afraid that it would be too tricky, but it’s relatively predictable. I have a feeling that it will not be so once it’s out of the range.
Working in a range and trend trading are completely different things. Stochastic and Bollinger Bands will not work in this case. As for me, I don’t use indicators at all in trend trading. I think indicators are helpful only when working in a range. When you observe a trend everything is quite clear and all you need to do is to mind pullbacks. A range can give you a good kick when you don’t expect it, so be cautious.