Trading and investing is an interesting business to be in with so endless programs, strategies, and gurus. Recently my relative asked me to help him get into the trading biz. I been doing it full time for over ten years and have traveled the world, so I guess he figure I must know a few things about it.
He asked me about different online courses - From $2k to $20K. Wholly shit, I didn’t realize how inflated those courses are. Back in the day before social media, Twitter, YouTube, and TradingView, I could understand maybe paying for some introductory course or something. But nowadays, no way. Sometimes I think we experienced traders forget how many scams are out there, and how easy it is for newbies to chase after the newest indicator or trading course. There are thousands of ‘experienced traders’ websites that only share and sell their greatest and latest ‘indicator’. Like the fashion industry they all sell what’s in style now.
It’s been years since I read ‘Trading in the Zone’ by Douglas, but I believe he often emphasized that one trait of successful traders is that they don’t get emotionally attached to a position. They don’t get angry or depressed when a trade is a loser, because before they even took the trade they already accepted that it could turn out badly. Successful traders spend more time reflecting and analyzing a closed trade as they do prepare for it. My relative was surprised to find out that 80% of my day is just doing research and journaling my trades.
Long story short, I will help him out with getting started with trading as long as he documents and journals his trades everyday. Since the markets are always evolving, my goal is to help him develop a foundation in which he is able to expand and develop his own strategies that fit his personality.
Trading cryptos are nice because they trade so technically. My relative, was looking at a bunch of really bullish opinions for crypto’s and ETH. However, just looking at the chart, I see no reason to buy at these prices. (I’m talking against my book). The trend or personality of ETH is negative. We consider the following:
1. Broke long term trend/channel
2. Broke the 20 and 50daily sma
3. Since late June large buy vol days had small range days
4. Sell volume out pacing buy volume
5. Series of lower highs and lower lows
The bulls still have some hope. 215 to 200 is a major inflection area where bulls and bears have fought numerous times over the years. And then there is the 200sma on daily. Since we have been hovering above the 200sma for a week now, I think it is very likely we touch it. And if we don’t bounce hard and fast off of it then price will go much much lower. Best case scenario is that price starts building a solid base and doesn’t get close to touching the 200 wearing out the bears and giving the bulls some confidence to add to positions.
He asked me about different online courses - From $2k to $20K. Wholly shit, I didn’t realize how inflated those courses are. Back in the day before social media, Twitter, YouTube, and TradingView, I could understand maybe paying for some introductory course or something. But nowadays, no way. Sometimes I think we experienced traders forget how many scams are out there, and how easy it is for newbies to chase after the newest indicator or trading course. There are thousands of ‘experienced traders’ websites that only share and sell their greatest and latest ‘indicator’. Like the fashion industry they all sell what’s in style now.
It’s been years since I read ‘Trading in the Zone’ by Douglas, but I believe he often emphasized that one trait of successful traders is that they don’t get emotionally attached to a position. They don’t get angry or depressed when a trade is a loser, because before they even took the trade they already accepted that it could turn out badly. Successful traders spend more time reflecting and analyzing a closed trade as they do prepare for it. My relative was surprised to find out that 80% of my day is just doing research and journaling my trades.
Long story short, I will help him out with getting started with trading as long as he documents and journals his trades everyday. Since the markets are always evolving, my goal is to help him develop a foundation in which he is able to expand and develop his own strategies that fit his personality.
Trading cryptos are nice because they trade so technically. My relative, was looking at a bunch of really bullish opinions for crypto’s and ETH. However, just looking at the chart, I see no reason to buy at these prices. (I’m talking against my book). The trend or personality of ETH is negative. We consider the following:
1. Broke long term trend/channel
2. Broke the 20 and 50daily sma
3. Since late June large buy vol days had small range days
4. Sell volume out pacing buy volume
5. Series of lower highs and lower lows
The bulls still have some hope. 215 to 200 is a major inflection area where bulls and bears have fought numerous times over the years. And then there is the 200sma on daily. Since we have been hovering above the 200sma for a week now, I think it is very likely we touch it. And if we don’t bounce hard and fast off of it then price will go much much lower. Best case scenario is that price starts building a solid base and doesn’t get close to touching the 200 wearing out the bears and giving the bulls some confidence to add to positions.