It has always been a point of reference for investors and commentators alike that cryptocurrency trading is an exceptionally lucrative venture when leveraged properly. However, much emphasis is on “when leveraged properly”. Volatile movements and spontaneous actions and reactions usually characterize the cryptocurrency market. That is why it is absolutely important to go into the market with proper information and an excellent strategy. The required information comes from studying and reading subsequent pointers from the market, through either fundamental or technical analysis, or both. These analyses take quite the time and dedication and a level of expertise not readily possessed by many. This is where eme Crypto Academy comes in for you.
Signals are trading information readily inferred by a professional analyst. The analyst conducts all the analyses in the market, determines what a profitable trade would be from that information, and works out the parameters for the trade to work out. When this is done, he sends out this information to other traders to use and profit from as signals.
As a student of the eme Trading Academy, you would be the recipient of signals and will be shared to a signal group. It is therefore important that you know how to follow signals. Below is an example of a typical emeCrypto signal:
SWING TRADE
#LONG ETH
Entry: 3180- 3380
TP: 4939- 5500
SL: 2734
This a classic emeCrypto trading signal. The first part of the signal indicates the type of trade that the signal is about. In this example, it's a swing trade. It is important to take note of the type of trade as this will inform you of how long you may have to wait until a profit/loss is realised and also how much of your capital should be allotted to the trade after considering your risk management.
Below the heading is the pair the signal is focused on, as well as the predicted movement. In this case, the signal is to LONG ETH, meaning the analysis predicted an increase in the price. The opposite of this is to short. In the event that the signal is trade for a spot trading signal, they would appear as buy or sell rather than long or short. The example below is a position trade to buy Eth on spot.
POSITION TRADE
#BUY ETH
Entry: 2300–2500
TP: 3000–3500- 4500
SL: 2000
The next part is your entry point. This is usually given as a range, because the market is not static. It is the price range within which you are expected to enter into the trade. Generally, you want to make multiple entries or DCA into a trade until your planned position is exhausted. Let’s say you get into a trade from the high range, it's not wise to go in with all your planned position, you can save some USDT just in case the trade goes to the low end of the range.
Up next is the Target Price. Like the entry part, this also comes in ranges. It is the part where you exit the trade with your profits. As it is in a range, you exit as your greed permits. A friendly reminder is that you should not be too greedy in the market! We strongly advise you to move your SL to above entry when price has gone in your favour in order to secure some profits because the markets can be very volatile. It’s possible for a signal that starts out as a profitable trade to eventually hit SL.
Lastly is the Stop-Loss/SL. This is the point where the signal is expected to be rendered invalid. When a trade hits stop-loss, you should exit it immediately as it means the market has taken an unfavourable turn. We strongly recommend that you use a physical stoploss as opposed to a mental stoploss to automate the exit. Using a mental stop can make you harbour the habit of holding on to a losing position and hoping that it reverses in your favour. Hope is one of the worse enemies of any trader.
Hope is a bogus emotion that only costs you money…
Signals like the above examples make trading easy for you. All you need now is to apply your proper risk management and personal trading psychology to follow through.
A Little Note on Trading Psychology and Risk Management
In other to win in trading, you must master your emotions. Fear, greed, hope and regret are four emotions that can make the trading journey a living nightmare. A trader with good trading psychology trades without any form of fear as he has faced and embraced/conquered the fears and emotions that plagues the average trader. He understands that from time to time, he will miss out on good trading opportunities and that the best opportunities are still ahead, so there’s no need to FOMO. He’s grateful for every win but not greedy for excess. He takes profits in due time and is not afraid to leave money on the table because he understands that he can’t scrap every penny from the market. He also doesn’t take on excessive risks to try to recover his lost money, and he’s not afraid to cut his losses and admit that he’s wrong. He’s not ashamed of being wrong and he doesn’t hold on to a blind hope waiting for a recovery.
Risk management requires that you calculate your position size which would be based on your capital and acceptable risk. You need to have a fixed dollar amount called acceptable risk or “r”. This should be less than 1–5% of your trading capital. Risk management is crucial, especially for Futures traders or traders who use leverage. Learn more about risk management here.
Two people can be using the same signals and one of them could be losing and suffering in emotional pain and stress, while the other is winning effortlessly. The difference between them is in their risk management and trading psychology. You cannot judge the potency of a trading system from a single trade. The fact that a trade signal fails, for example, does not indicate that the strategy is wrong. No trading strategy can give a 100% win rate. One of the best trading strategies in a bull market is a simple pullback trading strategy. It has a win rate of. 80%. This means that 2 out of 10 trades may hit stop loss. In the long run, if you use a fixed r in each trade, you’ll still come out profitable.
Remember that no single trade is guaranteed to be a winner. Every trade is a gamble when considered individually. A good trading system, strategy or edge gives you a higher probability of coming out in profit over a given set of trades.
Types of Trades/Investing Based on Timeframe
At every given point in the market, some traders are taking a long position while others are selling? It may not be wise to judge a trade by the direction of the trade until you know the timeframe. Understanding timeframes in trading is as important as understanding TA and FA. In fact, the difference between trading and investing is the timeframe. Investing occurs in a longer timeframe (e.g a year) while trading occurs on a shorter timeframe (e.g in 5 minutes). So for instance the price of BTC can be crashing, investors would be drolling at an opportunity to buy some cheap coins. Traders on the other hand, would not dare take a long position because every smart trader has learnt that to trade against a trend is suicidal. So some smart guys are buying while some other smart guys are shorting. Both of them are correct. Both of them would end up profitable.
Bulls make money, bears make money, but pigs get slaughtered…
It’s dangerous to copy a signal without understanding the underlying thought process or principle behind it. If you copy a scalper who is shorting the market with high leverage and you don't understand his risk management, he would be making money while you’re losing. If you follow a long-term position trader to buy dips, the dips may get deeper and put you in a state of turmoil. You may sell at a loss and watch in horror as the price bounces back up. This happens too often.
ICO
We come together as a community, research promising ICO and private sales and contribute resources to invest as a group. The coins are shared on pro-rata after distribution. Investing in ICOs is a great way to make 10X to 1000X of your investments. ICOs are generally high risk and you should project a negligible part of your capital for this.
DCA
I’m a huge fan of long term investing. Refer to this article and watch this video to understand our DCA plan.
Longterm trades/Investments
It's good to take long term positions in sound projects. They say that the money is in the siting and not in the trading. Here we hold on to coins for months to up to a year or even several years. And we sell when the fundamentals have changed or we’ve achieved our price target.
Some of the trades we do include low cap gems
Position Trades
Here we hold on to trades for months.
Swing Trades
If you want to zoom into shorter timeframes, you must level up your risk management game. The shorter the timeframe, the more difficult it is to predict the market direction. You can do long-term trades without SL but SL is a must when you trade on shorter timeframes especially when using leverage.
We hold swing trades for days or weeks.
Day Trades and Scalps
Daytrading and scalping are reserved for professionals who have mastered risk management and every other necessary skill for trading. As you become more proficient in trading, you’ll be able to take advantage of any market scenario. Whether BTC is going up, going down or standing still as in a ranging market, a professional should be able to trade and make money.
When the market is ranging, our analyst may drop some trading range to scalp with. And we can use chart patterns to predict price movement. We also make use of sophisticated trading software as a trading edge.
Conclusion
I hope you found this helpful. You can drop your questions in the comments or in any of our communities.
Join emeCrypto
The emeCrypto Academy is a virtual and on-site academy that provides quality education on cryptocurrency trading and investing from novice to advanced levels. Our goal is to help you become a consistently profitable trader and a successful investor.
Join emeCrypto Academy and get education on cryptocurrency trading and investing; one-on-one mentoring and consultation on trading and investing; exclusive insights into the crypto markets; daily signals and market alerts; and access to our VIP Trading and Investing Group.
Disclaimer: None of my content should be taken as financial advice.
