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In this ETH analysis, I talk about the best uses for indicators when trading. I see too many traders either neglecting indicators, or focusing too much of their time on them. Indicators should be used as tools to help confirm conclusions. Often times traders will not use multiple indicators to make their decisions. In this video, I show a few different circumstances where traders should be using multiple indicators.
Along with indicators, I talk about how to correctly trade a breakout. Traders usually trade based on trend lines, when in reality they should be trading based on support and resistance lines. The support and resistance lines are based on the supply and demand of the coin. Supply and demand zones are much stronger indicators to look for then trend lines. For example, there were multiple times when Ethereum looked like it was breaking out (based on trend lines) but it was actually just a retracement that led to a new low. Being able to determine true breakouts makes trading much easier. It will help traders prevent losses and maximize their gains.
It's a great video but I would consider the possibility of the RSI rolling on the floor. During this downtrend, I've seen the RSI staying in oversold for a long time while the price kept going down. Imagine you buy and set your stop loss in these situations. The result is a huge loss of money. I would set moving averages and wait for price to cross them and wait for a retest of them before jumping in.
Magnr is a handy cross-platform trading site connected to a few big Bitcoin exchanges. Accounts never require any personal data or identitiy proof. So signup is quick and possible with anonymous data.
Leverage is available at Kraken up to 5x for several cryptocurrency pairs, including bitcoin. The fees are depending on the volume of the margin account.
Bitcoin can be traded on GDAX up to 5x leverage. The margin trading option must be manually turned on the account in order to make sure the users understands and reads the associated risks.
Margin trading is basically borrowing funds to purchase an asset, this allows you to buy more bitcoins that you would normally be able to do normally in the hope of making bigger profits on the price movements.
Advantages of Margin Trading.
The biggest benefit of margin trading is that you can take advantage of the additional funds when the market moves in the direction you expected. The overall profit of the positions once the bitcoins are soled and the loan is repaid is significantly higher compared to an ordinary trade execution.
Disadvantages of Margin Trading.
The disadvantage of margin trading is by nature the amount of risk a margin account can hold. The higher amount of leverage you take the bigger amount of money you can loose in case the market moves in an unfavorable way. Due to the margin call, the margin account must be funded countinuesly that involves significant amount of liquidity. It is only advisable to trade on marking if you have enough experience already on the market. To mitigate the associated risk, many trading platforms only offers limited amount of leverage trading opportunites.