BTC hits $3,500!!! lets go over some charts, and discuss Simple & Safe tradingsteemCreated with Sketch.

in #trading7 years ago

Its pretty slow on the market today, so I took 20mins out of my day to make a video and just go over my recent trades. We will draw out some bases, and talk over where I bought and what I was thinking. Also I will explain why I sold a little BTC at $3,500..

I am not making as many videos lately because I have outlined my method quite clearly in previous videos. So I want to post new videos only when I have some urgent quality content to share. But if you would like some more of these "mark up charts together" type of videos, just let me know.. I realize that since I cannot give everyone one on one time with me, it sometimes helps to see me talk about charts, so that you can easily understand how I trade.

Luc

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Great scroll through, I've been doing the same on coinigy the last few days to find good trading coins. It helps to get someone else's perspective and process on it.

DGD looks very nice, must have missed it.

As for other trading coins, check out FUN.

Some nice ranges, a breakout and then bounce off the previous range - (kinda like a cracked base in reverse?)

fun.png

I see that you're making lots of great trades! Good work man. I'm curious at how you come to those positions though, you're defying Luc's Law, yet profiting immensely!

I'm range trading, if you see my first sell the markets had already established a logical up/down range so I played off that. It then had a huge upside pump and I bought back around where it broke out from and then sold where price was a little congested.

If you flip the chart upside down, I Imagine Luc would have seen the are to the left (my first trades) as a base and would been buying the spike (lower) to exit on a pullback to the breakout point (where I bought).

I've had a few broken base trades, slowly adding it into my trading toolbox.

Dude, thanks! Loved seeing these examples, they're giving me a much clearer picture.

Got a couple questions!

  • How do you decide which amount you invest in which coin? I'm guessing ETH and BTC would have quite a lot, and smaller coins would get the rest. For What's the maximum would you invest in a coin with a 10 BTC daily volume, for instance?
  • How do you layer your buys in a panic? If you have 1 BTC to invest, would you start by buying small, then bigger and bigger the more it falls? Or the contrary?

Again, thanks for your vids. They're by far the simplest and most accessible I've found on the subject, which is exactly what I was looking for.

You always wan to blend in with the market.. so you have to watch the time and sales and see what kind of trades are usual, then make orders that wont stand out on level two... As far as the layering into a trade goes, When a base cracks and I really like the coin, I often take a nibble after the first little bit of panic... but then if a real panic happens, I will buy bigger and bigger with each buy.. always keeping an eye on your average position, so you know your break even point.. then you can start selling whenever you are in the profit.. Depending on the volume behind the bounce, I will take a quick profit or I will wait for it higher prices... Once im safely in profit, then I make those decisions based off how volume is coming in

Hi Luc, thanks for all this!

Assuming liquidity wasn't a problem, how much then? Would you start with 5% of the 1 bitcoin, 10%? What about the last one where you "get in big" what sort of percentage of the 1 bitcoin would that be?

Of the one bitcoin? Im sorry, i don't understand the question.. I dont have set % for buying in.. Its not mathematical for me.. I look at the time and sales and level2 to see whats normal, and then I start putting in orders all the way down the bid.. a little here and there, and then I watch how the coin drops.. if it drops fast, then pauses, I might buy a large chunk all at once.. if it takes its time and doesnt show evidence of real panic selling, then I will keep my orders small...

You are really great. Thanks for teaching us all this stuff in detail. I didnt know that you also analyse how fast the price is falling. Maybe I missed this in your videos, even if I have watched them several times.

Hi Luc, Thanks again for your time and patience. I know these questions are coming thick and fast.

I suspect that many of us with small accounts often don't have a problem with trading too big for the market. It's more of a question of "how much of my account should I trade?"

Would definitely like to hear more about what influences your sizing.

Hey Luc,

I'd like to thank you for helping this community. You personally helped me grow my account by over 25% in the last 25 days :)

I have a question though. When you say you look at the time and sales, what do you mean? How does the level 2 data impact your decision on buys beyond your base-breaking strategy?

join the facebook group..we are posting our trades after we finished, and also as we trade live

https://www.facebook.com/groups/1064955490307688/

@omri1181 is that group still active? I made a request a while back and it is still showing as pending.. Thanks

Thanks, and thank you for your support. Having your upvote draws more eyes to my blog, much appreciated.

More "mark up charts together" videos please! Its great to see new trades that you do and stories of how the chart reacts so we can hear how you are going about it. Maybe make that into a mini-series so people know what to expect and label your other new videos differently. Especially how everything is reacting after all the FUD/BCC at the beginning of the month.

I think people might find this interesting. I would really advise to read it:
https://hackernoon.com/meet-spoofy-how-a-single-entity-dominates-the-price-of-bitcoin-39c711d28eb4

Also quite worrying info about Tether (USDT):
https://hackernoon.com/the-curious-tale-of-tethers-6b0031eead87

Luc, maybe you could comment on this.

Since I am almost always holding USDT, I better do some extra research on this subject. I didnt realize that USDT might expose me to additional risk.. Hopefully some here reading your post will chime in with some insight into this subject.

I don't really know much about this subject, but why don't you use GDAX instead to trade between USD and BTC or ETH? GDAX doesn't use tether, and i hate the idea of assuming tether has 1to1 value with USD

maybe because Bittrex has many more altcoin pairs to trade but yes, GDAX would be an option if you want to trade only BTC, ETH or LTC.

you're right, i didn't consider that there are more usdt to altcoins to trade with on Bittrex. bleh....just use btcs or eth to trade those :)

The ALT/USDT pairings are rather new on Bittrex, the markets are not yet mature. Its safer to trade ETH or BTC pairings with ALT coins at this stage - but that may change over time.

This is a very good idea, I don't know why I didn't think of this sooner. Great advice @oneluckyflip!. I'm mostly concerned that USDT's backing is via Bitfinex since they have ben fined by the Commodities Futures Trading Commission. That explains a lot about Tether and Bitfinex's banking issues, ironically the trading community is worried that Poloniex is insolvent when to me the real issue is the USDOJ could close the doors of Bitfinex for good.

@quickfingersluc - if you need help making content, you can turn to @oneluckyflip or myself for some help. We are both very active in the [QuickfingersTraders Slack] (https://quickfingerstraders.slack.com) and have insight into what the beginner crypto trader is struggling with. Send either of us a DM via Slack if you like this idea.

How can I get an invitation into this slack group @tizzle ?

You don't need an invite, it's open to all of @quickfingersluc followers.

@tizzle I'm trying to join the slack group and it sais: "Contact the team administrator for an invitation" can you help?

I also tried to join the slack group and says "Contact the team administrator for an invitation".

See above :-)

Luc, one question. Why do you not short on those spikes. You seem to know exactly where they are? Chris Dunn mentioned he made 70% of his profits initially by shorting.

I really don't want to complicate this trading method for everyone trying to learn how i trade.. I like to keep it simple, because I make plenty from just taking long positions.. However you can trade both directions effectively.. I dont think it makes much sense to focus on shorting in a bull market, but it can be just as profitable.. I however dont short cryptos, but I do ocationally sell spikes (with my free coins), and rebuy my core position after it settles down..

Thanks Luc!

I think I can chime in here - Luc is taking the other side because there are a lot of panic sellers in the markets, the 'edge' is that they will overreact and the bulls will buy back to the area that the price cracked from.

You're trading against less experienced traders when you buy from them. The other way round, you have no idea if a base will break and you're trading against the guys who keep buying up coins that drop.

Two very different games.

Luc,

Thanks for your videos - they are a revelation and very informational.

I have some questions:

  1. In your videos, after a crack, you would buy a position and leave it to bounce back over the next 2-3 days and then sell high (say with 20% gain). Is there any reason that you don't try to sell within 12 hours, albeit with a lower bounce (say with 7% gain)? Wouldn't the latter have the benefit of freeing up your capital so you can make more trades each day (quantity vs quality)?

What is the optimal amount of time to wait after the bounce to allow the bounce to fully develop and reach the top?

  1. After the bounce from a crack, how do you decide how much to sell and in what increments?

I don't know where you've seen it, but Luc says he likes to participate in each bounce, so he should have some sells there. It's true that it frees up the capital, but there aren't that many opportunities in position trading, I don't think it's a problem for him.

There is no set time, it can be fast, it can be a few days, or a week.

I don't think he has set percentages. He mentioned that he layers in the sells in profit, as well as sometimes leaving 20% of profits to run after the trade.

@quickfingersluc Hey luc ,
What do you think about ETH/STEEM (POLONIEX) ? it seems to not getting a bounce I guess.. also the volume there is lower than before.

I haven't been making trades of your method lately , maybe because it's now a bullish market ? and less bases are getting broken ..
Are there any methods for when the market become bullish?

Thanks again for everything :) !

Love your videos look! Religious follower here. Quick thought.. Does showing this method help you in any way? I mean, the more people using this method, the more people that buy in when the chart dips and that would cause the market line to bounce up allowing those that use this method to sell high. Is this accurate? Could having others use your method actually benefit you and them? I'm new to trading but it seems like this would be beneficial for those using this method as opposed to those that use those crazy graphs and TA.

Hey luc!

Love your stuff. Honestly I would love whatever content you'd care to share, whether it's "mark up charts together" videos or just simple vlogs where you say "hey, check out this awesome market day today! here's what I did. how did you guys do?"

-Jason

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