How to Trade Crypto’s Safely

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#491: How to Trade Crypto’s Safely

In this video:

00:32 – How we made +2% on Bitcoin 

00:49 – Most people are losing money buying Cryptos

01:59 – Here’s my trade on the daily chart and why

04:16 – Litecoin also hits the profit target for 1.5% gain

04:48 – Making money from crypto safely

05:50 – Consider Blueberry Markets if you’re looking for a good broker

07:03 – Get onto one of my webinars and find out about our coaching course

I'm going to share with you how we trade cryptos using a very low risk safe way, and also how yesterday I made over a 2% gain on my account just trading Bitcoin on one trade. Let's get into that and more right now.

Hey there, forex traders! Andrew Mitchem here at the Forex Trading Couch with video and podcast number 491.

How we made +2% on Bitcoin 

And I'm going to explain today on this video podcast how we trade cryptos and how just yesterday on one trade on Bitcoin, I made over a 2% gain with only a half percent risk on my account. So let's get started.

Most people are losing money buying Cryptos

Well, Bitcoin, cryptos in general. Well, look, probably like yourself. I know a lot of people who have invested in them over the years and I know a lot of people, the vast majority who have either lost money or currently losing money by trading cryptos kind of more the traditional, if you could call it that on such a new market, but more the traditional approach.

Now, a lot of people that I know are still massively in loss because they got into cryptos like about a year ago, so that early to mid 2022, the price had come down a bit. It was a sort of 40 odd thousand dollars for Bitcoin. And and everybody said it's going to head up to 100,000 and beyond.

So a lot of people kind of got into it. And those people have been absolutely stunning because, you know, it's come all the way down to around that sort of 15, 16,000 level and now it's starting to head back up again. But all of that in using the way that we trade, it's kind of irrelevant because, of course, as traders, we can go long and short so we can buy and sell. So that becomes your first advantage.

Here’s my trade on the daily chart and why

But I want to give you a specific trade that I took just yesterday. So if you go and have a look at Tuesday, the 14th of February 2023, Daily Candle on Bitcoin. Have a look at that. And it was taken Wednesday the 15th and I'm recording this on Thursday the 16th. So go and have a look at the trade that we took yesterday based on the Tuesday's close on the daily chart Bitcoin BTC/USD.

Have a look at that. You will see on your charts there. That there was a perfect bounce off the swing high from the 5th of November 2022. So back on the 5th of November the market went up, it formed a high and it dropped again. The market is then gone over that level and come back to that level and then using the Tuesdays candle, which is our closed candle with the confirmation of the bullish set up. It's come back and use that high from the 5th of November 2022 as the low of the candle that we're looking at trading which just the 14th all February 2023.

So we now have a candle pattern in the right part of the chart. Bouncing off a very strong major support or resistance now becomes support level so that we've got a confirmation candle with a reason to trade it. We have our trendline break and everything else that we're looking for and we had room to move for the profit target was no obvious barrier in the way.

Guess what we did? We took the trade. Guess what happened? It worked. It retraced beautifully to a retracement level. So we took two positions on the one trade. I split my risk personally. I'd go half percent maximum per trade,