Trading Strategies There are three trading strategies introduced in this chapter. These strategies will form the foundation of other strategies that you will surely get used to as you mature in your trading abilities. This is assuming that you are new to cryptocurrency trading and have minimal knowledge and understanding of what it is and how to do it. Remember that this market moves constantly. Hardly a second that goes by when a trade is not being conducted. With more than 50 pairs of currencies and fiats, trading can easily become a full-time occupation.
Buy the Dips Always remember to buy the dips. Dips are moments in the price movement that a march forward is followed by a momentary step back. This is the characteristic of most markets. When you are new to any market, it is an effective way to identify trends. When you are day trading, trends are not what they would be if you were a long-term trader. A long-term trader considers a trend to last anything from a few days to a few months, and enters his position and leaves it for days, weeks, or even months. A scalper in cryptos or a day trader doesn‘t do that. He actively trades the waves, both up and down, and exits in minutes, or hours, at the most. Since you are doing rapid trades, you can use the dips to get a better entry point once a mini-rally has started. This is your first strategy. When you first get started, observe the graphical representation of price movements. Don‘t look at the numbers, as the numbers can‘t give you an image of the price as it takes shape. Watch the chart and adjust the timescale to 5 seconds, 10 seconds, and 1 minute to get an idea of the nature of the movement. You will notice that every advance is punctuated by a retracement and every fall is retarded by a momentary uptick. Get
