Simple Method $100 a Day Trading Cryptocurrency As a Beginner

[00:02] trading cryptocurrency with finding entries and exits for your trades I'm going to go through this entire setup right here and how to actually enter orders to make sure that your risk management is on point I will leave

[00:15] description let's come over to Bible and get our trading chart set up if you're not with buy bit yet I'll leave a link in the description they give a deposit you're new so if you want to go ahead and trade with me on there check that

[00:29] link for those details for a deposit bonus when you're trading and now we going to come over to derivatives because I'm day trading here that's what we want to use when we are day trading now if you're a total beginner you can

[00:42] definitely get set up in the spot Market you're not taking any leverage there you'll know you'll not have any liquidations you just buy and sell with if you do want to you know just start off without any craziness going on

[00:55] derivatives though if you manage them properly are better because they're a cheaper uh trading fee option and also you just get some much better day trading tools so I'm going to come into derivatives and then I'm going to

[01:07] actually look at this altcoin right here which is Matic to trade got a great trade set up for me over the last kind of six eight months or so so what we can do right now once we get the chart right here is just look around on the lower

[01:20] and higher time frame so I'm on the one day chart right here which is great just to see a longer term Trend you can also look out to the one week just right click and reset the chart to get it up and what you really want to see here is

[01:32] just looking for either down Trends or uptrends and so we're going to go to the left hand side in the brush you can definitely see we went in the uptrend right until kind of the crypto Market went into a new bear phase and then we

[01:45] had this kind of big downtrend here but what we can see from about the 20th of June 2022 is you can definitely see a kind of bottom here so that bottom formed and there was a big support line there that just drew the price back up

[01:59] and then we we kind of met this you know consolidation and support and resistance second for you to teach you how to do that so we're definitely off of this downtrend here and we've bounced up and we look to be consolidating so that

[02:14] gives me a longer term Trend to look at to think we're probably within an uptrend or a consolidation and then we can actually use that go into the lower day chart right here to see this and then when we want to make our entries we

[02:28] may go over to the four hour or one hour charts especially if we're day trading a lot better for us but once we've got that set up and we've got in our mind that we are actually probably looking at a you know consolidation or an uptrend

[02:42] forming here we can then put support and resistance on the charts support and resistance lines are incredibly simple but the price often meets price support at these levels known as Market structure so what we can go to do is on

[02:55] option but click the arrow to bring out the trend lines tool and then actually choose horizontal Ray this is something you can choose so just press this and support and resistance on the chart I'm just going to flip to the brush here and

[03:08] as we can see after this kind of on the wheat chart we saw this rejection of the downtrend and a big rally now we're seeing areas where the price is meeting some support and resistance so you can see we meet and support and resistance

[03:21] right here this is is a resistance line because we're coming up into this and we're getting rejected off this a few times down down and down so that is a resistance now as the price comes down you can see it meets some sort of price

[03:34] support at this level you can see a few times the price actually moves down into this price range and it meets support and doesn't go below there so you see kind of a rejection to the upside here so that's obviously support

[03:47] so that's obviously support moving us back up you see moving us back up here and then moving us back up here so this area this price level in general would be a support line supporting the price so we can go over to our trendline

[04:00] tool and around this level you can see many touches around this price level so that's where my line goes it is resistance if the price is below and then it turns into support if the price is above and comes down to me so that's

[04:14] a key level and you can see the price here is on the right hand side around 74.75 and then to the upside you see a major resistance level right here so we have one touch and a rejection we also have this which is a bit crazy and then

[04:28] we have this right here where we get a little bit of rejection as well so that is a resistance level up at this level where you get this crazy price where the price moved up and then got rejection you would put that as a resistance level

[04:40] as well and then even upwards if you want to go further up on the chart you again can see a huge area where when the price was coming down it met quite a lot of support at this level so what we would do there is just draw this line

[04:52] would do there is just draw this line here as well at 1.45 as an area of support and resistance now you can see the price often goes and trades to these lines we got a resistance level here that we got a lot of support here a lot

[05:06] of support here again and then we actually got a little bit of resistance when we're trading to set our entries exits and stop losses a simple way to understand the momentum of a chart is the macd so the macd gives us moving

[05:21] average convergence Divergence it takes a couple of moving averages and then it essentially gives us a momentum indicator when we are down here these two lines that's oversold bearish momentum so what we want to be looking

[05:34] momentum so what we want to be looking for essentially is for the macd just to be moving from a bearish into a bullish momentum if we're going to be Trading long so what we want to look at is these crosses over the midline this is from

[05:46] bearish to Buddhist momentum you have you know less relevant one here but it's definitely there a cross from bearish to bullish momentum you can see that when you cross over you often carry on further you know you don't just stop at

[05:59] the midline but you actually carry on so that bullish momentum continues and it goes into the the kind kind of overbought level so you can see that a third time here where we're in the bearish part of the um the macd and then

[06:11] we're moving through and then into the bullish part so as it's a momentum what we want to do is use macd to essentially see where we're moving from bearish into bullish momentum with the price and as long as they both give us

[06:25] that signal then we can kind of carry on and trade the momentum in the chart to trading what you're really trying to do is just get in at a good level and then ride that momentum up to the next price level where you think the price actually

[06:40] may trade to now the trade entry which is the most important part and how to manage your risk when taking a position we can look at the potential risk reward that we're happy with by using something on buy bit right here which is the long

[06:54] position calculator in this instance so click on Long position now we can choose any of these instances to trade let's say we're trading this latest move into support with bullish price action so we can enter around this level anywhere we

[07:07] want we can either trade the move into the support or when we actually bounce a little bit away from that support as well so let's just click here and now we have a trade calculator where we can see exactly how much we want to risk where

[07:19] should a stop loss go just look at previous levels where you think at this specific price level my trade would be invalidated I would choose something like this around the 67 level as you can see that stop loss right here would

[07:34] invalidate me because if the price moved lower still then it would validate the through that resistance and that just coincides with a cluster right here so further if you want to give the trade a little bit more room to breathe whereas

[07:48] resistance if you're trading the support right here expecting a bounce with bullish momentum then you would take profits you know around the previous resistance levels because we had one two and three instances where we broke

[08:01] through now if you are a position Trader or you want to trade longer term or you then you don't take profits you just kind of buy at these levels and maybe you're day trading we need a specific price Target that can be hit so that is

[08:17] our property price Target right here moving it up to the resistance moving the stop loss somewhere that you would consider the trade has broken down if it gets there and then we can see if we are happy with this potential risk reward

[08:30] how big should the trade actually be we can work this out via how large the stop loss is what we think our maximum loss is and that can tell us exactly how big the trade is so we can use a very simple trade calculation of let's call it two

[08:44] percent usually Traders will advise to risk around two percent of your portfolio per trade if you're really confident about about a trade why not use more maybe five percent or something but for the most part two percent or

[08:58] three percent is where Traders will make most of their calculations so we can therefore work out how much of our portfolio we want to actually put at risk so if we've got a thousand dollar portfolio you would put 20 at risk so

[09:10] what we do is take 20 and we divide it by the stop loss amount and as you can see we can actually use a calculator as well but we can see the stop loss amount um indicator that we've given the stop loss amount is

[09:22] loss amount is 0.0835 coins so let's just call it 0.08 and then what we can do is take 20 divide it by 0.08 and that gives the trade size what you can also do is just use this trade size calculator you can

[09:35] need is just the actual calculator itself so you have the open price here which we've seen is 77 cents from this entry and then the stop loss was 69

[09:47] cents our account balance is a thousand and we want to risk two percent you can see that the calculation comes out at a trade size of 250 units so 250 units right here we can do the trade trade entry level

[10:00] which was 77 cents and then the order quantity was 250 units of Matic so we can do that easily you can see now that we can actually put these stop loss in so if you just click click this button by along with tpsl we can actually come

[10:14] down and put the stop loss in which we can see was 69 cents so we can put that in now when we enter this position so we just press open long the system will will go long at this price level as long as the price is there it isn't there now

[10:29] this is an example and it will enter the buy order this price with this amount of coins but it would also enter a sell order a stop sell order at 69 cents as a stop loss so you get all of those positions in and once those positions

[10:43] alter them as you want but we can see right now that the cost of this order is going to cost us 192 dollars but uh what happens if we have other trades open or you know we just want to keep most of our assets off the exchange

[10:57] um we just want to have some you know dry powder left over from other trades use this entire amount well the way that leverage works is that you just put less down so you don't use the same trade size and use leverage to make your

[11:12] orders bigger but you just put less of your account on the line each time that you trade and so what we can do is go to isolated margin and then change that to let's say 5x and just press confirm now you'll see on the right hand side the

[11:25] cost of this order before was 192 dollars but if you press confirm now the cost of this order now goes down to 38 so what we're doing is opening the exact same trade size that we had before but instead of

[11:38] putting down almost 200 to trade we're now putting down 38 dollars to trade to trade our stop loss is the exact same amount though because we put those price levels in and the sell orders in what you absolutely must make sure of is that

[11:52] you're not using more leverage than uh to make your cost below your stop loss level what I mean by that is if the cost of the order was let's say ten dollars of the order was let's say ten dollars your liquidation price would actually be

[12:07] ten dollars because this system will never let you go into a bad debt and so if the cost is ten dollars then obviously you have ten dollars in as soon as the price wipes out that ten dollars your trade is completely wrecked

[12:19] and the system will trade you out and so with 38 dollars we know that our twenty dollar stop loss is fine because it's within the cost of this order so we're liquidated before our actual trade stop loss takes place so that is is how to

[12:34] responsibly use leverage instead of just making your trades larger leverage isn't for beginners though so definitely go into it with eyes open I've got some very in-depth videos about using leverage and how that works in the

[12:46] future section that I made um lots of videos here step by step through the entire Futures Trading um you know how to do it and how to actually put in proper stop losses and how to manage leverage so if you want to

[12:59] find out more that uh link is down in the description to the crypto investor can work very well but it's more important to manage your stop-loss taking per trade as I just showed you the reason being even if you have a 50

[13:13] the reason being even if you have a 50 plus win rate there is still a 97 chance that you will get six consecutive losing trades in a row and so if you're taking 20 risk per trade then your entire account would be wiped out from this

[13:27] amount of consecutive losses which statistically are quite likely to happen throughout your trading career so with any strategy that you have you just need thing and using leverage can be done without increasing the amount of risk

[13:42] to a deposit bonus down in the description as well I'm James as many zg cheers for watching and I'll see the next one