Diary of a new Crypto Trader

timsk

Well-known member
Mar 18, 2002
6,792
1,742
223
#31
Hi Charty,
. . . In terms of misconceptions about indicators i disagree, simply because of the power of social media. You mention prop traders who are taught by a single tutor, well imagine 20000 traders following the same advice of one "pro" trader using one system on Twitter. If everyone's using the same setup, looking at the same chart, then one can deduce that a move via an indicator will have some momentum? In crypto it doesn't take much to swing the needle. And this is why trading in crypto is different.
Social media, especially Twitter, is very powerful indeed.
Twitter (in this context) is little more than a modern day boiler room - and what you're describing is a well known boiler room scam called 'pump 'n dump'. Sure, you will have some winning trades (possibly a few very profitable ones) using this approach but, in the long run, you will lose money. But don't take my word for it - or anyone else's for that matter. Just remember these comments - and those from mike and FXX etc. - when your account hits the maximum stop loss limit you've set!

I have however recently stopped relying on indicators to solely make decisions, and have concentrated more on support and resistance, candlesticks, volume and price ranges to make entries/exits. This simplified view is helping me to learn quickly. This coupled with the fact that i follow a Twitter trader has accelerated my learning.
Beware of what you learn on Twitter. Actually, that also applies here on T2W - I'm not being Twitterist. Traders (if they really are traders) who use Twitter to gain followers rarely have the best interests of the followers in mind. So, question everything and don't accept anything anyone tells you until you have checked it and cross checked it every which way to satisfy yourself that it (i.e. the idea, statement, advice or tip etc.) complements your view of the markets and how they function.

Out of curiosity how much TA do you use in your decisions, and out of that proportion what drives you the most?
I'm a big fan of Renko charts as I find time based charts too misleading. This is especially true for Japanese candlestick analysis a la Steve Nison. But that's just me - most other people get on with candlesticks just fine!
Tim.
 
Likes: Quantt
Apr 26, 2018
26
1
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#32
Hi Charty,

Twitter (in this context) is little more than a modern day boiler room - and what you're describing is a well known boiler room scam called 'pump 'n dump'. Sure, you will have some winning trades (possibly a few very profitable ones) using this approach but, in the long run, you will lose money. But don't take my word for it - or anyone else's for that matter. Just remember these comments - and those from mike and FXX etc. - when your account hits the maximum stop loss limit you've set!


Beware of what you learn on Twitter. Actually, that also applies here on T2W - I'm not being Twitterist. Traders (if they really are traders) who use Twitter to gain followers rarely have the best interests of the followers in mind. So, question everything and don't accept anything anyone tells you until you have checked it and cross checked it every which way to satisfy yourself that it (i.e. the idea, statement, advice or tip etc.) complements your view of the markets and how they function.


I'm a big fan of Renko charts as I find time based charts too misleading. This is especially true for Japanese candlestick analysis a la Steve Nison. But that's just me - most other people get on with candlesticks just fine!
Tim.
Thanks Tim.

Yep i'm totally aware of pump'n'dumps, and fortunately can spot them a mile away (The one's i refer to aren't in that category).
There are but a few genuine traders. The few that i follow don't tell you to buy, they exchange idea's and also show you their trades and often mistakes. But again i can see how people fall for the scammers and their tactics.

I question everything, and i want to learn!

Charty
 
Apr 26, 2018
26
1
3
#33
Hi Charty,

Twitter (in this context) is little more than a modern day boiler room - and what you're describing is a well known boiler room scam called 'pump 'n dump'. Sure, you will have some winning trades (possibly a few very profitable ones) using this approach but, in the long run, you will lose money. But don't take my word for it - or anyone else's for that matter. Just remember these comments - and those from mike and FXX etc. - when your account hits the maximum stop loss limit you've set!


Beware of what you learn on Twitter. Actually, that also applies here on T2W - I'm not being Twitterist. Traders (if they really are traders) who use Twitter to gain followers rarely have the best interests of the followers in mind. So, question everything and don't accept anything anyone tells you until you have checked it and cross checked it every which way to satisfy yourself that it (i.e. the idea, statement, advice or tip etc.) complements your view of the markets and how they function.


I'm a big fan of Renko charts as I find time based charts too misleading. This is especially true for Japanese candlestick analysis a la Steve Nison. But that's just me - most other people get on with candlesticks just fine!
Tim.
Other than Renko what do you chart with?ie indicators . And i take it TA is a small proportion of your analysis?
 

Quantt

Active member
Jul 23, 2017
945
57
38
#34
Hello and welcome...

One of the reasons I am active in this forum is a bit nostalgic I guess, in a sense that I see myself in new traders like you - making exactly the same mistakes... I wish there were forums like this many moons ago, when I started, so if I am you I would listen to the others commenting before me...

Anyway, here is my advice:

1. Do not trade tokens, there is just not enough data to build a good trading strategies and no reliable exchanges to do it on (with account insurance)

2. Forget about indicators and candle sticks, unfortunately they just don't work, maybe they did for the rice merchants in Japan few hundred years ago... The moment I became profitable was the moment I realized this simple truth...

3. Trading real money is different than paper trading only if you are risking large amounts like monthly wages, etc and if you do not know what you are doing, it is pure stupidity (and I know it first hand), risking few dollars per trade is just the same as paper trading to me...

4. Twitter and the like is just noise, there is no herd mentality, there are few people/companies trading most of the money and the larger number of traders are trading significantly smaller total amount, so it wont work even if the majority of people are doing the same thing... Not to mention that every one tweeting regularly must have an agenda (selling something: training, signals, etc) otherwise why do it at all... help humanity :)
 

timsk

Well-known member
Mar 18, 2002
6,792
1,742
223
#35
Other than Renko what do you chart with?ie indicators . And i take it TA is a small proportion of your analysis?
Hi Charty,
Renko is pretty much where it's at for me these days. Although one can use indicators with Renko - I've not found any that tell me anything especially useful. So I just keep it super simple and use two charts to provide a macro and micro view. The longer term chart (i.e. larger brick size) indicates the dominant trend, while the short term one (i.e. smaller brick size) helps to time entries and exits. Put very simply, when the bricks of both charts are green I'll be long the market and when both are red I'll be short the market. This obviates the need to work out what a Harami Cross or Tombstone Doji etc. might be telling me - if anything (on Japanese Candlesticks). My personal view is pretty much in line with Quantt's above: I think candlestick analysis is mostly hokum (note emphasis) and has little relevance (especially intraday) to the current market place. The notable exception to this are daily or weekly candlesticks in exchange traded markets. That said, fair play to those traders who swear by such stuff. It's a case of whatever works for you, floats your boat, mows your grass and sends your elevator to the top floor.
(y)
Tim.
 

Kaeso

Active member
Oct 4, 2015
861
91
38
#36
Whether one is trading TA, indicators, fundamentals, renko, twit signals :cheesy: etc... if you "don't know what you're doing" and you're relatively new, there's a higher risk of losing a few coins :) Start small...

what is your twitter account McChart? i couldn't find it
 
Last edited:
Apr 26, 2018
26
1
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#37
Whether one is trading TA, indicators, fundamentals, renko, twit signals :cheesy: etc... if you "don't know what you're doing" and you're relatively new, there's a higher risk of losing a few coins :) Start small...

what is your twitter account McChart? i couldn't find it
Should be Charty McChartface as typed in on search.

Cheers
 
Apr 26, 2018
26
1
3
#39
Hello and welcome...

One of the reasons I am active in this forum is a bit nostalgic I guess, in a sense that I see myself in new traders like you - making exactly the same mistakes... I wish there were forums like this many moons ago, when I started, so if I am you I would listen to the others commenting before me...

Anyway, here is my advice:

1. Do not trade tokens, there is just not enough data to build a good trading strategies and no reliable exchanges to do it on (with account insurance)

2. Forget about indicators and candle sticks, unfortunately they just don't work, maybe they did for the rice merchants in Japan few hundred years ago... The moment I became profitable was the moment I realized this simple truth...

3. Trading real money is different than paper trading only if you are risking large amounts like monthly wages, etc and if you do not know what you are doing, it is pure stupidity (and I know it first hand), risking few dollars per trade is just the same as paper trading to me...

4. Twitter and the like is just noise, there is no herd mentality, there are few people/companies trading most of the money and the larger number of traders are trading significantly smaller total amount, so it wont work even if the majority of people are doing the same thing... Not to mention that every one tweeting regularly must have an agenda (selling something: training, signals, etc) otherwise why do it at all... help humanity :)

Well thanks Quantt.:)

My purpose for posting this thread was to enable me to learn from other more experienced traders, which i am doing, but i would love some pointers as to what i should be studying - if my way is not the most profitable.

You and others have mentioned trading via price, with no indicators or candlesticks, how do you learn to do that? What resources are good to learn this?

I'm not here to argue the pro's and con's of what i trade, if i papertrade or not, and if i follow people on Twitter. I take those points on board, but i think that what i am doing is right for me.

Anyway, thanks for getting in touch and i look forward to your response.

Charty
x
 
Apr 26, 2018
26
1
3
#40
Hi Charty,
Renko is pretty much where it's at for me these days. Although one can use indicators with Renko - I've not found any that tell me anything especially useful. So I just keep it super simple and use two charts to provide a macro and micro view. The longer term chart (i.e. larger brick size) indicates the dominant trend, while the short term one (i.e. smaller brick size) helps to time entries and exits. Put very simply, when the bricks of both charts are green I'll be long the market and when both are red I'll be short the market. This obviates the need to work out what a Harami Cross or Tombstone Doji etc. might be telling me - if anything (on Japanese Candlesticks). My personal view is pretty much in line with Quantt's above: I think candlestick analysis is mostly hokum (note emphasis) and has little relevance (especially intraday) to the current market place. The notable exception to this are daily or weekly candlesticks in exchange traded markets. That said, fair play to those traders who swear by such stuff. It's a case of whatever works for you, floats your boat, mows your grass and sends your elevator to the top floor.
(y)
Tim.
Hi Tim.

I've looked at Renko, but couldn't put it onto smaller timeframes on Tradingview without paying the premium membership. I will look into this further.

I'm guessing that Renko is more suited to Swing Traders than intraday, as you are not too worried about small changes in price - as long as the general trend is up or down?
I think that's right?

If i was to switch over to stocks from Crypto where would you recommend a good start? I've opened an account on AJ Bell, but find the interface much harder than Binance which i use for Crypto. Any help would be appreciated.

Charty
x
 

timsk

Well-known member
Mar 18, 2002
6,792
1,742
223
#41
Hi Charty,
I'm guessing that Renko is more suited to Swing Traders than intraday, as you are not too worried about small changes in price - as long as the general trend is up or down?
I think that's right?
Renko is just another way of presenting price in a visual format and has a lot in common with other graphic representations that don't use time, e.g. Kagi, 3 Line Break and, most notably, Point & Figure. (If you want to explore PnF - dentist007 is the forum expert, check out his thread: Trading with p/f) All of them can be used to day trade, swing trade or position trade. Theoretically, they could even be used by scalpers who are in and out of the market in a matter of minutes. How each trader utilizes their preferred chart type is entirely down to them - there is no right or wrong way - just what works for them.

If i was to switch over to stocks from Crypto where would you recommend a good start? I've opened an account on AJ Bell, but find the interface much harder than Binance which i use for Crypto. Any help would be appreciated.
I'm not 100% sure what you're asking here - is it what broker to use to trade stocks? If so, this will - to a greater or lesser extent - be determined by your chosen vehicle to trade them, i.e. direct market access (buying and selling actual shares) or a derivative product of some kind such as CFD's or spread betting. Thereafter, this FAQ will help you sort the wheat from the chaff: Can You Recommend a Data Feed, Charting Software & Broker?

Lastly, in response to your post replying to Quantt in which you ask for resources for trading by price, the go to member on this topic is dbphoenix - it's well worth looking at his threads. He's provided a lot of content, so I suggest you start with these two:
Straight Line Approach, The (the SLA)
Trading Price
Tim.
 
Last edited:
Likes: Quantt

Quantt

Active member
Jul 23, 2017
945
57
38
#42
Well thanks Quantt.:)

My purpose for posting this thread was to enable me to learn from other more experienced traders, which i am doing, but i would love some pointers as to what i should be studying - if my way is not the most profitable.

You and others have mentioned trading via price, with no indicators or candlesticks, how do you learn to do that? What resources are good to learn this?

I'm not here to argue the pro's and con's of what i trade, if i papertrade or not, and if i follow people on Twitter. I take those points on board, but i think that what i am doing is right for me.

Anyway, thanks for getting in touch and i look forward to your response.

Charty
x
Best is to get data and start experimenting... Tim also gave very good pointers above...