What this book covers
Chapter 1, Introduction to Cryptocurrency Trading, sets the stage for the structured learning experience that this book aims to provide. The chapter will share the author’s story and process and then debunk market myths and explain why many traders lose money. It will help you understand the pitfalls of information circulating among the trading community and equip you with the practical knowledge needed for your trading journey.
Chapter 2, Understanding the Basics, is designed to help you navigate your emotional responses when trading through a risk assessment questionnaire. You will also take your first steps in studying a chart on various timeframes through a unique candlelight story. The chapter will delve into the trading behaviors of different market participants, helping you comprehend why sudden buy or sell actions occur in the market, even if indicators suggest otherwise. Finally, you’ll learn about the three different types of markets.
Chapter 3, Technical Analysis – Candles and Patterns, lays the foundation for your trading career by introducing one of the most powerful charting tools: TradingView. This chapter will guide you to see the “story of the price” on your screen and comprehend the emotions driving small price movements through candlestick patterns. You will explore chart patterns for stronger and long-lasting movements, delve into support and resistance areas, and understand the laws that govern them.
Chapter 4, Technical Analysis – Technical Indicators, introduces the most commonly used indicators in trading, making sure you understand how each works and in which situations you should use them.
Chapter 5, The Centralized Exchange, demystifies the operations of centralized exchanges and trading procedures on these platforms. The chapter also discusses an advanced tool that links to centralized exchanges, making the trading process user-friendly.
Chapter 6, Money Management, dives into crucial aspects of trading strategy management, including loss limitation, position sizing, the advantages of maintaining a trading journal, the essentiality of a precise trading plan, and the choice between trading in stablecoin versus Bitcoin.
Chapter 7, Finding Your Edge, guides you through the extensive process of developing and implementing a successful trading strategy, starting with the basics of a trading system, identifying potential trading patterns, and culminating in defining entry and exit points – crucial elements for risk mitigation and profit securing.
Chapter 8, Automated Trading, focuses on the technical aspects of trading strategies, starting with creating a custom indicator in TradingView using Pine Script. It then transitions to coding strategies using an open source bot for cryptocurrency trading. This allows for 24/7 trade execution with accuracy and speed, effectively marrying your trading ideas with technical execution for powerful, automated systems. Why not trade while you sleep?
Chapter 9, What’s Next?, is a road map for your journey after the book. Having learned sufficient theory and practice and developed a strategy that can be traded manually or automatically, this chapter suggests a recommended path forward.
Bonus Chapter, contains trades I took during one month of trading. Here, you can see me in action: see how I analyze Bitcoin, how I think when entering the trades, and even what I feel regarding consecutive wins and losses (yes, I have those too!).
