Common trading questions answered by a pro

Hi Wirexers :sun_with_face:!

Wanted you to share this free insight into mind of successful day trader. Twitter user EmperorBTC has answered the most common questions he’s received from his followers and gives opinion on numerous trading tips. Either you are just starting out or an established crypto day trader, everyone can find more helpful clues or just establish rock hard basic knowledge on more profitable ways of trading crypto.

Q1) HOW MUCH WAS MY STARTING TRADING CAPITAL?
It doesn’t matter. I’ve said it multiple times, still I’ll try to answer it as many times as possible. I used to trade options before getting into Crypto and I started with 5K USD. I lost money on multiples occasions and then finally after losing, filling the capital again with loans etc. I got a grip of trading.
I honestly don’t remember how much started Crypto with, but I had asked mum for money.
It was 4K at first. I made Profits so I asked her for more money, 4K again and then I lost 80% of it in one day during huge volatility in Bitcoin. Fortunately, Bitfinex used to square off position at 1/3
liquidation limit and I was left with about 20-30%. From that day, I swore to never risk too much, follow risk management, and take it slow. Taking it slow proved to be a winner for me.

Q2) HOW MUCH LEVERAGE DO YOU USE?
People misunderstand leverage and ask this question. Your decision shouldn’t be how much leverage to use, but what your Position Size should be. I have explained it in my Telegram Tutorial on Capital
Preservation. Please read it to understand how much leverage to use and how its determined.

Q3) HOW OFTEN DO YOU TRADE SPOT? WHAT IS YOUR RATIO OF SPOT VS FUTURES TRADES? DO YOU USE FA IN SPOT TRADES?
When I am trading Alts (Coins below top 10), I only trade Spot. Crypto is the most volatile asset class and there’s enough volatility in it. So, when I am trading smaller coins, I only trade spots over leverage. If I am trading, I only use TA to find a good setup, whether for futures or spot. It’s not difficult to find a good setup on spot and look at the PA and Volume to determine that the PA has been organic. For much smaller market cap coins, I try to get in early and it is purely FA based. TA doesn’t work on newly launched coins. For Bitcoin, I only use TA. Never news or anything. It is what’s worked best for me, and I am saying this after trading BTC for 5-6 years every day.

Q4) WHAT IS THE BEST WAY TO TRACK ONE’S PROGRESS AS A TRADER? WHAT IS THE PROCESS TO REVIEW TRADES?
When you’ve been consistent for 3 months you can be sure that you’ve made the money from your skills and not luck. Then you become a potential trader. Progress can be tracked in just one way, when the market dumps and everyone is scared, how calm are you. Another important thing to do for at least the first 1 year is to take a clear screenshot of the chart for every trade that you’ve taken throughout the day and study it. Mark entry, exit and reason. You’ll know what you did right, what trick isn’t working, etc. Forcing yourself to review your work every day will make you a better trader.
99% of you won’t do it, but just my advice.

Q5) WHAT IS YOUR SCANNING PROCESS TO SELECT SPECIFIC PAIRS TO TRADE OUT OF THE THOUSANDS?
I have made it easier for myself. For trading, I mostly only trade Bitcoin and that has made my life easier because I know how it’ll react. I never have to worry about the liquidity etc. I only use one strategy and it’s super simple. It’s my edge. If the charts show what my strategy wants to see, I enter. Period. There’s not a lot of analysis or looking at too many indicators for me. Apart from this, every morning I scan the top 20 coins and mark the areas where I will be interested in and put an alarm on Tradingview. However, this isn’t needed if you’re a beginner. I would highly recommend you to just choose one asset and trade it to grow your skillset first before trying to look at 1000s of assets. Once you’ve grown good, then try to expand.

Q6) IF ONE CANNOT OR DOESN’T WANT TO TRADE, WHAT SHOULD THEY DO?
You should definitely master De-Fi. NFT, Metaverse or whatever comes up in future might die but Defi will stay, develop, change, and change the world. No other way. I am thinking to make a comprehensive guide on it, but can’t promise when.

Q7) HOW WOULD YOU DEFINE “EDGE” IN THE MARKET? IS IT IN REPETITION AND PRACTICE FOR YOU OR IS IT IN FORMULATING A NEW TRADING STRATEGY?
What is an Edge in trading? This can be explained well with an example. Let’s say you understand what RSI Divergence is. Now we all know that Divergence is a show of strength or weakness in a PA. Can you always trade based on Divergence? Imagine if things were that easy. Every time a bullish divergence occurs, you buy the coin. Will it work that way? Of course not. Divergence as we all know is a signal or a confluence. When exactly to use it as a signal for entry depends on many other signs that you’re able to derive from the Charts. I have a follower who just kept on trading Divergence
for about 1 year now and he has mastered when to trade which Divergence. This can’t be explained, and this is developed over time by observing a tool or whatever you call it. Same goes for EMA crosses. EMA crosses occur all the time but which ones to trade? Must be observed and checked when additional conditions are established that only you know of, then an edge is developed. This is what an edge is.

Q8) WHAT DO YOU USE TO EARN INCOME/INTEREST FROM YOUR CRYPTO? YOU SAID YOU WANT TO EARN 1000 BITCOIN, WHAT WILL YOU DO TO EARN INTEREST ON YOUR MONEY THEN?
Passive income from Crypto. If you’re not active in trading, if you don’t have the time or if your capital is too big, only then I suggest you look to generate Passive Income from crypto by lending it. However, I don’t recommend this if you have the time or aren’t looking for passive income. I will make a guide on Passive income. How you can earn the best rates for lending your Crypto very soon, with the best dynamic rates. After I retire, I aim to shift completely to yield farming, lending, and becoming a podcast host.

Q9) I MADE A TRADING BUDDY. WE TALKED TO EACH OTHER BUT HOW DO WE GET BETTER TOGETHER IF WE ARE ON THE SAME LEVEL?
Many people think that all the big accounts started with a big following. I had zero followers just a year ago. The best way to make a friend is to help people around, tell them what you know and what you’re looking for. Twitter enables this. I can’t tell you how to make friends because it’s the most common human instinct, to seek friendship. It will make your life easier and success 5x faster. Nothing is difficult if you want it enough. Secondly if you talk to them enough, you’ll come to know what level they are at. Be honest about your position, don’t try to over sell yourself, don’t try to look smart. Be honest. Collaborate with your trading buddy and ensure consistent growth together.

Q10) HOW’S YOUR DAILY ROUTINE?
Wake up and don’t touch anything for 1 hour. No PC, No Phone. Nothing. First 1 hour is for yourself. I meditate (try to) and it’s extremely difficult and extremely easy. Do nothing. Sit comfortably. Don’t prevent any thoughts from coming in, don’t bring any thoughts in on purpose. Whatever happens, happens. Try it for a few days. Next is exercising and I leave it up to you. Next, I check the status of my last days trade. If the SL has been hit, I re-evaluate. If the trade is still running, I look at the price structure and if it has changed, I re-evaluate my Take Profits, if nothing has changed, I leave them as it is. Next, I check the top 20 coins and see anything provides an opportunity as per my strategy to provide for an entry. If yes, I take it. I mostly use Market Orders to establish an entry. At the end of the day, I study my daily trades for 15-20 minutes. What I did, why I did it and tomorrow’s
action. This is what 99% of the traders don’t do and this is why they fail. Once I stop trading, I forget about the market. I switch off and that’s it. I don’t have any Crypto apps on my phone except for a small wallet. I don’t trade or keep track of trades from my phone. Trading is supposed to make your life easier, calmer and happier. Not stressful. Switch off and forget the market.

Used resource : https://twitter.com/EmperorBTC

Thanks for the read everyone! :heart: