Module 3.0.0. Profitability of Trading
Can one make profits from crypto trading? Of course, yes. Crypto trading can generate good profits within a short time just as it can wipe off all your cryptos in one sweep.
To be a successful trader, there are three facts you must know:
(1). Technical details
(2). Fundamental details
(3). Sentimental details.
Technical Details – refer to trade analysis based on previous market movements to forecast future movement. A lot of technical tools or indicators abound in the market that are used to analyse trades, e.g. Moving Average Convergence Divergence (MACD), Relative Strength Index (RSI), Bollinger Bands, etc.
Always remember this important fact about technical analysis:
No technical analysis will provide a 100% accurate prediction of the Crypto Market. The fact is you will win some and lose some. Hence, never be deceived by anyone claiming to make huge profits without losses because of the “unfailing precision” of a technical tool.
Fundamental Details – refer to trading based on market news. It is referred to as “fundamental” because you are trading based on important (fundamental) news that has the influence to move the market. Such news includes economic news on cryptos, major political statements, etc.
To trade based on fundamental analysis requires active monitoring of news across the Crypto Market. EdaFace Newsfeed (https://news.edaface.com/) and EdaFace Listing Platforms (https://listing.edaface.com/) are good platforms that monitor unfolding news in real time across the blockchain industry and the digital world in general. If you desire to trade fundamental news, you will need to be patronizing these EdaFace platform.
Sentimental Details – refer to trading based on the feelings of the market. When you realize that trades are done by people, even the trading robots are set up by people, you will understand why people’s feelings play a crucial role in market movement.
For instance, one tweet from an influencer can send the price of a crypto speeding to the moon. If you catch such movement and ride with it, your 100 dollars can suddenly multiply many times into thousands of dollars.
However, note that just as you make quick profits, you can also have quick losses that may also affect your capital. Indeed, trading of cryptos involves high risks that you should always remember.