I am writing this journal to go over the basics of trading digital assets on liquid exchanges. I will not delve deeply into the fundamentals of the assets unless it is necessary to explain the trading strategy. Furthermore, I want to thank Executium for helping me edit/publish this. We will first either publish an image or a website link on Bitfinex Pulse under Executium – as much of the material just cannot be tweeted, I am too busy to post everything myself.
I have 20 plus years of trading experience. Further, I have collected information and advice from long-time professional traders who have worked in hedge funds and bulge bracket investment banks globally who I am lucky to call my friends. Those friends and myself have traded in a professional capacity U.S., Latin American, Japanese, Korean, Chinese, Hong Kong, Malaysian, Indian, Indonesian, and EU equities (stocks), convertible bonds, derivatives, global commodities, and cryptocurrencies. I have traded through ’97 (Asian Financial Crisis), ’00 (Tech Bubble Burst), ’08 (GFC), and now ’20. I think it is safe to say that I have gained a little insight into trading.
I may go over trade examples but make no specific recommendations as to when the asset or timing of purchase or sale of such asset will be made. This is to provide knowledge so hopefully you may attain the proper skillset to be a sustainably profitable trader. However, strategies might work one day, but may fail you the next – and the way to make money over time changes as the situation dictates. This is something where advice is limited, and I just hope that you can develop along the way.
Having said the above, now let's get down to business – what to go over?
1. Risk Management: Without this, forget 2-9, you WILL NOT make it.
2. Exchanges: How do exchanges work, why are there price differences in Exchanges
3. Directional Trading: Indicators I use and how opportunities are spotted
4. Arbitrage: How to find, analyze, and execute arbitrage opportunities
5. Free Money: In crypto, it's around, for those who start at zero money – read
6. Market Making: when is being a taker good and when is being a maker good
7. Liquidity: Ping Pong strategies and the like
8. Options: When to use options, how to hedge options
9. Systems: What kind of systems do I use to achieve efficiency to trade
This is a rough guideline on what will be reviewed. There will probably be multiple articles/graphics for each topic and may range over time. Maybe we can jump from topic to topic.
As always, a disclaimer that this is not investment advice and should not be construed as such. Always do your own research and be aware of your own risks.