Swiss Alp Trader

This is my first post on #Binance Square and certainly not my last. I look forward to sharing my extensive experience gathered over the last 25 years as a technical analyst and stock market blogger with you. Long-term success in the stock market doesn't depend on luck, but on strict discipline and the use of the right analytical tools. However, before I introduce some of my instruments, let me first say a few introductory words.
It may be surprising, but most people who invest money in the stock market for the first time don't fail right away. This contradicts a widely held opinion. About 90% of first-time investors make their first trade based on a good piece of advice from a colleague. This, however, is not due to the expertise of the colleague, but because the stock market is in a strong bull market, rewarding almost all newcomers with initial gains. Thus, the second and third trades are often successful too, until the price eventually meets resistance and stagnates. If the inexperienced trader is lucky, they might sell in time and celebrate their profit. They will share their experiences and believe they can now achieve almost anything, losing sight of reality.
Many young traders then actively search the internet for further investment opportunities and, of course, find them. Typical claims like "XY is about to explode" often lead them astray. After a steep rise, prices often stagnate initially. Traders who exited at the peak and celebrated their gains are quickly eager for more. But many make the mistake of re-entering too early. When the price suddenly drops, they panic and sell at a loss. Trying to make up for the loss, they re-enter at the next small recovery and are often surprised by a further decline. This scenario is familiar to many inexperienced traders. The greed for more eventually eats up the previously made profits.
That's why I want to return to my guiding principle: "A true winner is not only defined by their actions but also by the wisdom to recognize when it's best to just wait." Patience and waiting are the secrets of every successful trader. One must become a patient observer to strike at the right moment and then secure the gains. Every trade must be well thought out. Only this strategy will lead to regular profits in the future.
Want to learn more? Then follow me, and I will show you how to analyze the market and develop effective entry and exit strategies. In the meantime, however, you should already begin to learn the most important lesson: Learn to wait. There is not just the one big opportunity, but many small ones that can bring substantial gains.
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Have you ever wondered how to plan an entry with minimal loss risk? I believe this question is not given enough importance. I see traders being tempted into premature entries by market hype almost daily. Tokens or coins are often recommended that are new to the market and have not yet been properly established. If these can only be acquired through a decentralized exchange, the risk of incurring significant losses increases enormously. But how do I place a trade relatively safely?
Here are some tips on how to proceed:
Trade larger sums preferably not on decentralized exchanges, but use trading platforms like Binance or Coinbase, etc. Only the latter give you the option to deposit "stop-loss" or "limit-order." Besides, you can sell much faster in case the market is on fire compared to making a sale on a decentralized exchange.Try to avoid buying coins that are already well in profit. Especially if the price has already made a considerable move upwards (long green candle), you should never jump on the bandwagon. Profit-taking can quickly put an end to the strong upward movement. For example, on Binance, you can see the most lucrative titles under "Markets"/"Winners." I know it's tempting when you see titles there that are 60, 70, or even 100% in profit. But please don't make the mistake of buying into these titles. The chance of making a profit then is very low. Profit-taking can quickly turn courses into the negative.Never buy into resistance. Resistances must absolutely be overcome first to ensure a safe entry. Always place so-called #Buy-Limit-Orders above a major resistance. Keep in mind that larger investors like to "test" resistances. That means the price quickly shoots up but cannot hold there for long. So, if you have placed the "Buy-Limit-Order" too close to the resistance, your order will be triggered, but you will immediately incur a loss after the purchase. By the way: If the price has already surpassed the ATH (All-Time High), the Bollinger Bands will be your best friend. Never buy when the upper band has already been reached. Wait until the price returns to the middle band, and then consider an entry.Trades can be very effectively planned with the help of technical indicators such as the #MACD (Moving Average Convergence Divergence). The MACD indicator is used to identify trend reversals and continuations. A bullish signal occurs when the MACD line crosses the signal line from bottom to top, indicating a potential upward movement. A bearish signal occurs when the MACD line crosses the signal line from top to bottom, indicating a potential downward movement. Example of a trade: For instance, if the price reaches the middle Bollinger Band while the MACD signal line simultaneously crosses from bottom to top, go Long. Set the stop-loss approximately 10-15% below the middle #Bollinger-Band. Never go Long with your entire capital at once. It is better to place various Buy-Limit-Orders behind major resistances. This way, you will enter the market very securely.
Of course, even with all these precautions, no trade is 100% safe. However, you can significantly minimize the risk if you adhere to certain guidelines and behaviors.
Want more tips like these? Follow me, and I will show you how to become a better trader and regularly earn profits.

In my first article, I wrote to you about the importance of staying focused and patient for successful trading. Of course, that's only half the battle; you also need a clear trading strategy and the right tools. You only achieve inner peace when you get to know the market better. But knowing the market better doesn't mean you will always know how it will react. Everything might look excellent, and in the next moment, prices could plummet. I have invested in commodity trading for over 10 years and know how brutal price drops can be. Often, a single piece of negative news, or manipulation by a major investor, is enough to crash prices. No matter how a crash occurs, nobody sees it coming. The only remedy is to have an exit strategy in place when you purchase your position. Without this, you will almost certainly suffer a total loss sooner or later. Follow me, and I will show you how to become a successful trader.
You will learn tools for analysis and how to secure your position so that it remains protected from price drops even in your absence.
So, let's get started with our first lesson. The most important thing for any trader is the chart. It shows you where things are headed. When you trade on #Binance, you get a whole Swiss Army knife of valuable tools that can help you better estimate price movements. Let's take a closer look at the price history of #Bitcoin ($BTC). It became interesting from October 2023 because it was trading above the 20-day Simple Moving Average (#SMA20) and eventually broke out along the upper Bollinger Band. But what exactly is a Bollinger Band? Well, I don't want to go into too much detail and possibly bore you, but in short: this technical indicator is a volatility index that gives you precise information about support and resistance points. At its core is a moving average of the past 20 days (#SMA20). The upper band is calculated by a 20-day simple moving average plus (20-day standard deviation multiplied by 2). The lower band is a 20-day simple moving average minus (20-day standard deviation multiplied by 2). However, you don't need to calculate this yourself; Binance already provides the ready-made indicator. I will show you how to apply it in the following chart.

In the graph, I drew a vertical red line when the price first generated an alarm signal. The SMA20 was initially only tested, but then violated with a closing price below the 20-day line. A sell signal is generated when a closing price is below this line. And indeed, this happened a few days later. If we had placed a stop-loss below this line, our position would have been sold automatically. The next two days traded at a similar level, until a price above the SMA20 was generated on the third day. So, you would have gone long here, which generated slightly rising prices for the next 8 days. Only on the 9th day, a very long red candle followed, which not only would have triggered our stop-loss but probably also ruined the gains of the last 8 days. So, a break-even situation, but you would have remained protected from larger losses.
As you can see from the white descending line, it then continued downwards for several days. When almost 14 days later another green candle closes above the SMA20, we enter again. And this time, the journey took us from $42,550 to $64,700 before we were stopped out again. So, you make a profit of $22,150 – not bad, right? And thanks to my trading strategy, even without taking a big risk of losses. You might be wondering if there was a way to exit at the peak. Indeed, there are indicators that react earlier. However, these are either very complex, or they only work reliably in certain situations.
So, how should we assess the current situation of #Bitcoin? Currently, we are well below the #SMA20. In the momentum indicator, I see an impending oversold situation, which indicates an imminent trend reversal. However, if you want to be on the safe side, only buy when #Bitcoin generates a closing price above the #SMA20. Then a further strong rise is very likely.
In the next episode, I want to show you exactly where to find these tools on Binance and how to set up an automatic stop-loss. So stay tuned and follow me. We still have a lot to do together.
Do you have any questions? I look forward to your comment!
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