In this lecture I'm going to give you two basic strategies what most traders use for short term trading
or The first is called Pump and Dump.
Basically you buy two cars for one it's rising and you sell when it starts to drop.
So you buy low and you try to sell high.
It's a short term strategy and not the best.
In my opinion many times you offer new money by then you start selling it to others buy buy buy buy
buy buy buy.
And then when it starts to going down then you sell yourself and other people who bought it because
you recommended it.
They are still in.
And that's also not a teacup and after all many people end up buying high and selling low like we saw
in the previous picture here.
Many people end up buying here and then they sell here low.
So that's what many times happened.
The ideal situation would of course be that they buy here when it's writing and sell here when it's
hasn't dropped yet.
But most of the time it happens.
Otherwise many people end up buying high and low especially beginners so that's why if you are starting
out if you have little experience I highly highly recommend that you don't do this kind of training
more advanced technique is technical analysis and this is what like professors and traders are doing.
And they study the market trends and use them in there as well as also the same idea.
Buy low sell high.
They talk about Bear and bull markets bear market which means when the value is going down and the bull
market means that we value is going up.
And then there are many kind of indicators.
For example a CD indicator candles hanging man handler invert timer buyer support cellular resistors
et cetera et cetera.
So there are many factors that people are using in order to study and find the right thread and try
right market trend where it is going.
And if you don't understand about this yet I highly recommend that you stay out of trading at the moment
and you start with long term investing because trading is more for more otherwise people who are already
lots of experience have they know how the market works.
And still most of them are also losing money.
And with technical analysis you are basically playing with probabilities.
So it's somehow similar to Polgar and other gambling because you can never know what will happen in
the future.
So you are putting probabilities.
You are believing Most likely this will happen so I'm betting for it and then I sell when it starts
going down.
And that's you probably know it's possible to make money with poker.
It's possible to make money with gambling but it requires lots of skills and knowledge about the subject.
That's what most beginners make.
They just go there and they lose their money in the long run.
There's this big question that you need to answer.
Can you predict the future based on the history because technical analysis and short term trading in
general it's tries to predict the future based on the history.
So let me show you examples.
They studied these kind of trends.
They drove this line.
They show that OK the market has been going here.
So then it will go up or down or they had these trends and trading the different kind of indicators.
Also can those three insights three outside three at once in while it's always many many different one.
And then I took this one task to illustrate that some of their lies.
They are.
They take them out of nowhere and they don't make sense.
Now this is sorry for this little low picture but I just want to highlight and underline that some some
indicators that traders are using is nonsense and they are making it look like something smart they
throw all this lies.
And in reality they are as nothing.
Very good.
So let's go to our convolutional short term trading is not recommended for beginners.
I know that some people can make money with short term trading and it is possible but I want to highlight
an underlying requires lots of knowledge lots of education.
Most of the time.
Short term trading is sold so it has higher risk and you make smaller profits.
I have talked with many people who invest in cryptocurrency so many times they say me that I made two
times gains but I could have done let's say 100 times gains and they miss these gains because they were
just traders.
The risk was also higher because they were all just looking for some pump and dump coins and not very
potential ones for the long term.
So let me show you an example.
Bitcoin the biggest cryptocurrency at the moment by the market cap.
And if you have bought cryptocurrency let's say for let's say $200 spent it was somewhere here you hold
it for a while and then it was $1000 and then you said now I'm out of the game.
Now go away then you lose all these gains.
When it went to 15000 $10000 one of my friends went in when it was like $3000.
Then he got out when it was again seven thousand eight thousand dollars and he said he lost his gains
and with it's her room.
The second biggest crypto currency in the market cap.
Let's say that you bought something here for twelve dollars and then you sold the tear for $40.
You were who are worth two and half times profits.
But then it went up to $1000.
And other people were like How did it make it.
So that's why long term strategy is most of the time more profitable.
I've seen it so many times that people buy something that they sell.
They make little profit and they regret it afterwards.
So it has higher risks and lower was not always but many times in 90 percent of cases that's what happens
unless you have lots of knowledge about trading.
So in the next section we are going to talk about long term investing and I'm going to give you a first
try this is how you can make more money by long term investing in cryptocurrency.
So stay tuned.