Hidden strategy for optimizing profit in spot market trades.
Hello friends, it's another pretty good time to learn about one of the hidden trading strategies which might not be easily dished out by many professional crypto traders.
Today's narrative will be majoring on trading the spot market as though it's a future trading scenario. I gave this very system of trade the nomenclature of loss free trading system.
I know that the majority of people are scared of hitting the future market because of the high level of risk involved but there is a better way or strategy to capitalize and gain credible success as a crypto trader.
What is spot market trade in cryptocurrency
Most professional crypto traders in the world today probably started as a spot trader because of its less risk position in the crypto market.
The concept of spot trading entails the trading of assets in a less risky position. The value of a trader's holding may increase or diminish but still keep the quantity of his asset intact. In other ways, it is a crypto trading system where the asset value of a trader can either keep rising or reducing while the quantity remains constant.
In the spot market scenario, a trader probably has nothing to lose than to exercise patience if he entered the wrong position or trend of the market.
How this strategy works
This strategy is distinctly applied using specific cryptocurrencies like BTC/USDT and BTCDOWN/USDT, TRX/USDT and TRXDOWN/USDT, ADA/USDT and ADADOWN/USDT etc.
A careful scrutiny from the above cryptos indicates that each pair of crypto has almost another semblance of token like the BTC and BTCDOWN… and we will get to know how to trade these cryptos from the example below.
Nonetheless, I will be using the Binance exchange to illustrate the possible means of trading these cryptos but specifically, I will be illustrating this using the current trend of the BTC/USDT and the BTCDOWN/USDT.
The difference between these two markets is that they are simultaneously and directly opposite in trend. For instance, a downwards movement in the BTC will create a corresponding upwards surge in the BTCDOWN and vice versa.
Practical approach
This will be further illustrated using 30 min. time frame while trading as an intra day trader on the Binance.
A proper observation from the two screenshots above indicate that as the trend and chart of the BTC is going down, the BTCDOWN is titanically going up with each candlestick simultaneously and conversely taking their respective directions.
Nevertheless, for us to be able to maximize this market setting as spot and intraday traders, we have to first locate and place these coins as our favorite cryptos based on their availability in the exchange we are trading with.
Next we deploy our acquainted indicator(s) for observing signals. We have to also note that this is a spot market and not a future or CFD market where you can easily trade on either side but in the spot market, you are only restricted to go in for a buy trade.
Finally, from this example as spot traders, we can only buy BTCDOWN using the USDT pair since the BTC/USDT pair is taking a downwards trend.
The datum remains that as a trader who wishes to optimize profit within a short period using this spot market strategy, you have to keep the coins as your favorite token, set your time frame to either 30 min or 1 hr, next you buy the coin that is bullish and wait for its reversal. When the other pair that has gone bearish reverses again, you now enter for a buy preference.
Thanks to those that spotted my blog today, please I wish to note that all the screenshots were taken from Binance and edited by me. I will be highly excited to see you in my next article. I believe that a few of my publications can also be of help as a crypto trader if you wouldn't mind.
Theoretical psychology for massive success as a future or CFD trader
Proper application of indicators for massive success in crypto trading