I started to trade forex 12 years ago. I looked at almost all possible literature (books) and (Japanese candle sticks, indicators, , etc.), traders' psychology, paid for expensive forex courses.
They all failed me. 4 years!
Not because these were wrong (or maybe but who am I to say so) but because they were of no help for me to trade. I was loosing money.
On the chart, this is me 10 years ago applied to today's bitcoin chart
Then I realized that trading is only managing risk. As a trader, my job is to manage risk. And it needs a set of few components that you need to have right:
- Charts - and how to read them.
- Understand cycles of the market (time frame, momentum)
- A trading system (that provides entries based on the same approach over time. can be anything I reckon: cross-over, candle stick patterns)
So, I based my work on Theory ( was a genius) but I dropped his approach of market trending in 5 waves only and also his labeling but I kept his vocabulary.
I used different time frames for direction, setup and execution that fits my personality. I do not read news or listen to rumors when I trade. This is noise to me that is here to justify price when I believe that price is all that matters (except if you are an insider trader with deep pockets... no further comment). I trade extensions in corrective sequence with Fibonacci levels.
This year, I started The Trader's Corner and I am trading for a living.
What is your approach to trading in general and cryptocurrency in particular?