Trading the News

Trading the news as a main trading strategy is difficult to manage, due to the difficulty to be the first to hear and respond immediately, and most of the time the market will beat you to it. When trading the news, the market will often overreact, as people tend to get caught in a moment or jump on a bandwagon without really thinking things through properly. Therefore, the best trading method regarding trading news is to capitalise the “corrections”. For example, a 20% fall, will often be accompanied immediately with a 5-10% correction rate, as the market adjust to this over-reaction. This is one of the ways you can maximise on your bitcoin trading value.

Fundamental analysis

A fundamental analysis is a very popular form of bitcoin day trading strategies and it basically means that you look at the fundamental data which affects the price – number of wallets, number of active wallets, number of transactions per day, volume traded on exchanges, volume reported by retailers who accept BTC, and so on. You then use this data to estimate the Bitcoin’s worth at this particular point of time and decide whether you think it is currently undervalued or overvalued (and how confident you are in that assessment) and then buy or sell accordingly to create a high bitcoin trading value.

Limit Orders

Limit orders will automatically execute a trade at a certain price.

Risking too much capital in a single trade idea

Stop-Loss

Stop-losses can be used to lock-in profits when the price changes direction after moving in your favour.

Stop-Loss

Technical Analysis

Technical analysis is an extremely complex discipline in the bitcoin day trading strategies space, but you can start to understand the underlying trends and forces that shape the market by learning about volumes, moving averages of different kinds, and different patterns that emerge in the charts. We offer many reliable research tools for conducting technical analysis including RSI Indicators, Bollinger Bands and many others.

Support Level

Used to describe a situation in which a downward price level is expected to meet resistance as buyers come into the market to pick up a perceived bargain.

Resistance Level

Used to describe a situation in which an upward price move is expected to meet resistance of sellers taking a profit.