fourth lesson: we have arrived at the point of having to choose which Coin to work on, we have already said that three fundamental points are needed,
1. clean charts, and we saw how a clean chart looks (previous post)
2 the percentage (%) of movements must be wide enough to allow us to earn easily without risking burning profits with commissions and ensuring we invest our time well..
3 we need favorable signals for an entry..
so let's talk about point 2..
let's start with Bitcoin BTC, it is the guide of everything, very often the cryptos follow its trend creating almost identical charts with differences in the percentages of movements, for example if btc moves by 1% other cryptos may move by 3-5% making the same movements.. the same thing happens with cryptos that are thematically linked or are related, for example xrp with xlm sometimes their two charts go hand in hand but the percentages of movements change, in summary, it is advantageous for us to work where there is a bit more volatility than btc
(I remind you that we are in spot where we do not increase capital with loans so we must try to make our capital work best by leveraging the most favorable Coins)
on the other hand, we cannot choose newly listed Coins, there the movements are often extreme and difficult to predict, again we should not be tempted by quick gains, because losses will also be quick. better to learn to create profit in a solid way.
to understand if the movement percentages are good, we go to the Time frame you have chosen based on how you are willing to work (we have already talked about this in previous posts), find a Coin with clean charts and manually check how wide the "hills" are.
do your research in the market screen, select the stablecoin you prefer to use (usdt or usdc) and arrange the Coins in descending order of volume.. we need important cryptos that are highly traded.
we will continue from here