TRADING BASICS Everyone should know!

If you're in crypto, it's essential to familiarize yourself with these basic concepts. They will provide a foundation for understanding more advanced scenarios in your trading journey :

a) Types of Trading :

1. Day Trading: Buying and selling within the same trading day, attempting to profit from short-term price movements.

2. Swing Trading: Holding positions for a few days to weeks, aiming to capture medium-term price trends.

3. Investing: Buying assets with a long-term perspective, based on fundamental analysis.

b) Market Participants :

1. Retail Traders: Individual traders like you, trading for personal profit.

2. Institutional Investors: Large financial institutions trading on behalf of clients or their own accounts.

3. Market Makers: Entities that facilitate trades by providing liquidity

c) Market Analysis :

1. Fundamental Analysis: Evaluating the performance of a crypto coin developments, use cases and more to determine its intrinsic value.

2. Technical Analysis: Studying price charts and patterns to predict future price movements based on historical data

3. Sentiment Analysis: Assessing the overall market sentiment and investor emotions to gauge potential price shifts.

d) Risk Management :

a) Capital Allocation: Only allocate a small percentage of your total capital to each trade to minimize risk.

b) Stop Loss: A predetermined point at which you'll exit a trade to limit potential losses.

c) Risk-Reward Ratio: Assessing the potential profit against potential loss before entering a trade

It is important to thoroughly understand and familiarize yourself with all the terms mentioned in this post.

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