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3yrs ago Crypto newsbtc Views: 232

As an opportunist and inherent risk-taker, the recent volatility in traditional markets like stocks and gold has proven too alluring an opportunity for this Bitcoin trader to pass up. Here is a collection of what I’ve learned over the past month trading traditional markets versus the Wild West of cryptocurrencies. The Wild West of Bitcoin and Crypto Trading By way of profession, and through my now long time spent around the Bitcoin community, familiarizing myself with charting and technical analysis to increase the education put forth in my content unfolded naturally and slowly. In time, I realized I had amounted enough knowledge in understanding all the chart patterns, technical indicators, and even had a solid read on overall sentiment through crypto Twitter, Reddit, and more. I even learned to essentially do the opposite of what my own instincts would tell me. It’s not a coincidence that every time I was shocked by how much my portfolio value had increased – to the point of taking a screenshot – that the market would soon tank. Related Reading | Bitcoin Shows Ideal Set Up For Epic Rally: Stock-to-Flow and Oversold RSI  It was this realization that a strategy could be built using my own gut, sentiment, and charting, so I decided to give trading BTC and some alts to increase my holdings a try. A couple of wildly successful early trades led to overconfidence, and in no time I was in the hole. Make no mistake about it, when people say trading is extremely difficult and nearly who everyone tries it fails – believe them. It’s taken over a year to get to net positive results, and the initial losses were significant. Tuition fees, in the grand scheme, as those hard knocks have since turned me into an emotionless, unbiased, data processor rather than an investor when I approach trading. It truly takes breaking you to achieve that mentality. Breaking you doesn’t just come from losses. Especially when I’ve had plenty of epic wins in between that were juicy enough to keep me satiated and getting back on that horse. The breakdown is a slow, steady grind if you don’t manage things properly. And learning that also takes time. Cryptocurrencies trade 24/7, which means every winning position taken during the day, that hasn’t yet reached your take profit level nor has been stopped out, is still open and at risk overnight. Try sleeping well with a decent amount of Bitcoin on the line. Next, try sleeping in a position you’re confident in, and is already underwater but hasn’t yet reached your stop loss. Sweet dreams, another time maybe. Bitcoin and altcoins also trade on the weekend, and during that time the low volume makes for odd movements. I had to instill a rule to simply not trade on weekends because I would commonly lose a week’s worth of successful profits over two days on the weekend. Again, hard knocks learned. Simply put, trading cryptocurrencies is an added stress in your life no matter how you slice it. No more money than I’m comfortable putting on the line as been, and I’ve found that matters little anyway in keeping my mind from wandering, wondering how my positions are doing. Ever since the major crash last month, trading Bitcoin has been slightly easier. It’s been responding better to technical patterns and signals, however, Bitcoin is always gonna Bitcoin, and Bart moves, scam wicks, and all the other commonly chattered about tropes of the crypto market will continue on. Turning To Traditional Markets: Stocks, Oil, Gold, and More Also ever since the recent market collapse last month, traditional markets like stock, oil, or gold have become nearly as volatile as crypto. After setting an all-time high in February, major stock indexes collapsed to the worse quarterly closes on record in most cases. During the quarter, single-day records for the largest rallies and drops back and forth since the infamous Black Monday in 1987 were set. Gold just tapped the highest prices in years as recession looms. And Oil prices just dropped to a shocking 18-year low. A week prior the commodity had a record-setting rally. As a trader, it doesn’t matter which direction the price goes, you can still make money. All that matters is how far price moves and how often. In relative terms, missing out on trading this type of volatility would be like missing out on Bitcoin bull run like gains – an opportunity of a lifetime. The allure of that incredible historic volatility baited this crypto trader to traditional markets, and I can certainly appreciate the differences between traditional assets and speculative assets like Bitcoin. Related Reading | Gold Indicator Flips Green, Signaling Potential Decade of Uptrend In the few weeks trading major US stock indexes and gold, they’re proving to be entirely different beasts. Make no mistakes about it, these are shark-filled waters I’m swimming in, but at night I get out of the ocean and on the weekends, I’m sipping margaritas on the beach instead. Traditional markets close over the weekend, allowing me peace of mind while I unplug from a hard week worked. My focus is on family and fun, not finance. Holidays don’t need to be spent wondering what the stock market is trading at while you pass the gravy boat. Traditional markets respond far better to technical analysis, and the timing of pumps or dumps that go along with breaking political news events actually make sense and are somewhat predictable. With Bitcoin, what would normally feel like positive news, turns into a crash. For example, the launch of the Bakkt Bitcoin trading desk was the most bullish thing since 2017, until it actually launched and Bitcoin tanked by $2,000 the same week. Related Reading | Eat My Shorts: Everything You Need To Know About The Bitcoin Bart Pattern These oddball movements, scam wicks, Bart moves, Darth Maul candles and all the weirdness that are known throughout crypto, are due to the low liquidity in these assets. This isn’t the case with the largest major stock indexes in the world or a precious metal and safe haven asset that’s market cap is in the trillions and has been used for centuries. Bitcoin may be digital gold, but it is new, speculative, and exciting, and there’s a ton of money to be made – especially trading it. And there are few things I believe in more passionately than the first-ever cryptocurrency. But when it comes to trading, at least for now, traditional markets being this volatile, yet less risky and less stressful than crypto markets will continue to be too attractive an opportunity for me to pass up.

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