Trading Strategy Development

Written by Edward Gonzales

March 20, 2021

It is not impossible to make 100% returns trading cryptocurrencies. There are people out there who in a month make a 100% return on investments trading cryptocurrency; but these people are all taking very high risks. The thing is, these people don’t tell you that they could have lost all their money because they didn’t have a sustainable system. Some of them are truly pros and have perfected their strategies. Most traders, however, are typically trading without technical analysis and essentially taking a 50/50 shot.

Making money in the financial markets is actually not hard at all, it’s very easy. It’s really just luck. The markets can either go up or go down. You essentially have a 50/50 chance of being right or wrong. In the same way that it’s not hard to earn crazy profits trading blindly, it also isn’t hard at all to make crazy losses using that same method at another time. The challenging part is making money consistently, so that you can create an income out of this instead of gambling.

Most people get into trading with this crazy idea that they are going to be millionaires overnight, and these are the same types of people that will fail and walk away. Now don’t get me wrong, it’s absolutely possible to become a millionaire trading cryptocurrency. However, if you are expecting to get those results in the short term rather than the long term, then I guarantee you will not end up becoming a millionaire trading cryptocurrency. You will more than likely risk too much money hoping for quick gains, just to be met with quick losses instead.

Most people that don’t get a proper education will blow up more than one trading account before they understand the realities of the crypto market. The reason I am telling you all of this is so that you don’t formulate unrealistic ideas. I would also hate for you to experience a liquidation. I’ve had that happen to me before and I can tell you that when you see the hard-earned money you invested go down to almost nothing, it’s a horrible feeling. Know that you can prevent all of this from happening to you if you pay attention, remain focused, and take trading seriously.

In the market, there are two ways to make money. First, you can buy low and sell high. Second, you can sell high and re-buy low. If you are buying low and selling high, you found interest in an asset that you believe will go up in value. If you are selling high and re-buying low, you are holding onto an asset that is going down in value and you want to sell it and wait for it to fall to a lower value so you can rebuy it and pocket the difference. We will cover both in greater detail shortly.

Opening Market Times

Remember that the cryptocurrency market is open 24 hours a day, 7 days a week. You can trade any pair at any time. Note that there are times when trading is more active such as “big bank” market open and market close times. This is when you are bound to find more volatile moves for you to profit from – during the active hours closer to market opening and closing times. Even though the cryptocurrency market is open 24/7, the opening and closing times of the different big banks around the world have some influence over the crypto market. You can find different pumps in volume at different times of the day based on these open and close times. The times provided are based on the New York timezone (EST), so make sure you convert the times to your own time zone. 

At 5 PM EST the Australians start trading, and they trade until 2 AM EST, which is when the Australian Dollar starts getting active because that’s when the Australians are trading. At 8 PM EST the Tokyo market opens, and the banks start trading all the way to 5 AM EST, so that’s when the Japanese Yen starts to get active. Then, at 3 AM EST the London market opens, which means that the Euro and GBP starts getting a lot more active until it closes at 11 AM EST. Here is a reference to help you visualize when the markets open.

MarketOpening TimeClosing Time
Sydney5 AM2 AM
Tokyo8 PM5 AM
London3 AM11 AM 
New York8 AM5 PM

Types of Crypto Traders

One concept that you must understand is that there are many different ways and styles of trading, and each person has their own style of trading. Most traders, however, can be divided into 4 categories: scalpers, day traders, swing traders, and position traders. The main differences between these traders are how much percentage they are targeting in their positions, the duration of their trades, and the timeframes they use to analyze chart data. 

Trading Style/TypeTarget % GainsTrade DurationTimeframes Viewed
Scalp Traders.05 – .25Seconds – Minutes1M & 5M
Day Traders1 – 4Within A Day15M, 1H, 4H
Swing Traders5 – 10 Days – Weeks1H, 4H, 1D
Position Traders10 – 20Weeks – Months1D, 1W, 1M

If you’re an experienced trader, thank you for taking the time to read this. As a novice trader, it is important you understand how world market open and close times can affect your trading strategies. You can not use the same strategy all day every day. It is also important to know how the types of traders can play against your strategies. Sometimes you will see a profitable swing trade against a scalp wall, and once that wall is shattered it can get crazy. That might not make sense right now – that’s okay. Just keep this information in mind when you are finding your rhythm in this industry. 

If you would like to learn more about cryptocurrency trading, blockchain technology, or automated income methods, check out our website for more information. We have plenty of free content as well as multiple educational courses available to advance your trading strategies and general knowledge of cryptocurrency. 

By viewing any material or using the information within this publication you understand that this is general education material and you can not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here. Trading cryptocurrency has potential rewards, but also potential risks. You must be aware of the risks and be willing to accept them in order to invest in the markets. Only trade with funds you can afford to lose. This publication is neither a solicitation nor an offer to buy/sell cryptocurrency or other financial assets. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

Written by Edward Gonzales © Crypto University 2021

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