Hey everyone,
I'm just starting out in trading and crypto. I've got a hardware wallet with some funds, and I usually check prices on CoinMarketCap. I got a bit lucky and bought SOL at $20 lol! But honestly, my grasp on trading strategies isn’t that solid.
I tried to whip up a high-frequency trading bot using AI, but it’s not super helpful since I can't really figure out the best times to buy and sell to actually make a profit.
I stumbled upon this book by M. Riguet Patrick about the Ichimoku technique, and before I go ahead and buy it, I wanted to see if you think it’s a good read for beginners.
Appreciate any insights from you all!
Don't focus on using or coding a trading bots because its risky if you don't know how to use them.
There are many strategies out there, not only the Ichimoku technique, and if you are a newbie, I don't think you need to focus on learning that strategy, but why not? You can try that if it works for you; however, before you try it, don't invest instead do it with papermoney money. You can use TradingView to test it.
For newbies, I suggest start learning first about technical analysis like chart reading and charting and then fundamental analysis I have an awesome link check below
- https://github.com/SpiralDevelopment/Awesome-Crypto-Trading
havent used ichimoku like ever, but got friends who used ichimoku for his trading or even investing, still trades to this day, I guess the technique work but we can never be sure but buying few bucks book to learn ichimoku seems worth it.
AI still doesn't work really well for trading right now in my opinion, see all those AI trading bots in exchange, most of them have 50% win rate, or around that. doesn't sound so good to me.
also, sometime AI can spit error, I wouldn't risk with that.
Ichimoku is too complex and it is too laggy behind the market, so you will be very late with your reaction to the market movement.
Use RSI, MACD, Volume profile VPVR, Average True Range ATR and focus on Volume profile as in any market, trading volume is very important. It shows you how capital in the market flows around, without capital inflow as fresh blood, the market won't take up sustainably.
Whatever indicator you use, don't forget to use stop loss order.
One of best weapons in trading.
I think it depends on personal approach. I started active trading in 2020, without any knowledge in trading. I gained a lot but lost a lot in my first year but I learnt a lot and I completely changed my trading style. I just have a basic rule that I follow. I'm very patient, I might trade only 1-2 times a year or sometimes I don't even trade for a full year and trade in the second year. I don't believe in charts and indicators, I believe that Bitcoin's price is affected by environmental changes like China banning Bitcoin mining, SEC approving Bitcoin ETFs and etc.
This is what I do, I hold till the bubble bursts. The bubble starts bursting when something bad happens and if you have good analytical thinking, you'll understand what news will cause the burst. To sum up, I'm more focused on news than on charts but I often use monthly charts, they are a very good indicator. Daily charts always lead me in the wrong direction.
Before the use of bot technology to determine your trades, you must be technically knowledgeable about trading and also development your own trading strategy so that it will be easy for you to instruct the bot to do your job efficiently because the bot is just to act in accordance to your trading program.
So if you don't have better trading idea then you can not rely on bots doing it uniquely for you unconditionally on it own.
I don't really understand the ichimoku technique that you mentioned, but my opinion is don't just focus on technical analysis, you also need to learn fundamental analysis, because both technical and fundamental analysis are things that help make better trading decisions. and so the ichimoku technique that you mentioned can be a good start for you.
I bet you aren't still hodling that Sol till date, and if you're; it won't be same quantity. It will be something less. Some of us were that lucky to have bought most of these profitable coins with strong utilities when they were at begging prices but how many of them are we still hodling now? I'm also implicated in this. So, I don't blame anyone who's also affected in this way. It only shows how human we're because we surely don't know what tomorrow holds and can't predict the future.
The mention of Ichimoku has brought me back memories from way back when I started this trading journey several years ago. I remember using it as one of my trading indicators after tweaking with its settings. Well, I can't really say if it was great using it or not because I never made any substantial win with it. It could also be because at the time I used several indis with it. In all, one thing I did and continue to do is never to use default settings for any indis I'm using on my charts. I always change their settings.
Welcome to the world of trading crypto.
There is no 100% guaranteed safe strategy.
I recommend just holding your crypto long term instead of trading since you're new. Ichimoku Clouds are useful but only if you are an experienced trader.
Meanwhile you can trade dummy coins on a testnet (many large crypto exchanges have one) to practice trading and track your progress.
There's no such thing about something that could predict out and give precise information about on when to buy and when to sell and you have seen already about that holding will really be worth on which considering on how cheap you've been able to by $SOL into those early times on which its a good entry and now you are indeed making some profits. Speaking about these candlestick formations then its relevant but its not something that you can rely on with your decisions yet we do know that technical approach isnt something that give out that accurate on where prices could go. So better not to stick out with this kind of idea and learn up others not only just that these TA.
Dont rely on BOT or TA but you can make out some testing if you are really that curious into the things that you do have in mind. We do know that once curiosity kicks in then it will really be that hard if you wont be able to test it out. The main thing that should be in mind is that you do really need up to consider about the risks involved and this what matter the most so that you wont be ending up on getting messed up.
Well, beginner's luck indeed.
It's just sad on my part that I saw BNB at single digits a few years ago, and didn't think of buying during that time. Same thing with Solana. I wonder what will be the next one in the future.
Learning Ichimoku can be or can be not a good start depending on you. Using it alone will not yield profits from you though that's for sure. You need more than Ichimoku technique in order to be profitable in trading, but it can be a good start. Combine it with different indicators out there, and it might be your recipe for success.
At the end of the day, it doesn't matter what will you start. What matters is what will be the end results after learning, and learning.