diff --git a/DeFi/day-trading/README.md b/DeFi/day-trading/README.md index f6f6254..9cdc986 100644 --- a/DeFi/day-trading/README.md +++ b/DeFi/day-trading/README.md @@ -1,155 +1,13 @@ -# Day trading notes +# Day trading
---- - -## Types of trading +* [Notes on order types](https://github.com/bt3gl-labs/Blockchains-AMMs-and-MEV/blob/main/DeFi/day-trading/orders-types.md) +* [Notes on trade types](https://github.com/bt3gl-labs/Blockchains-AMMs-and-MEV/blob/main/DeFi/day-trading/trading-types.md) +* [Notes on techical analysis](https://github.com/bt3gl-labs/Blockchains-AMMs-and-MEV/blob/main/DeFi/day-trading/technical-analysis.md)
-### Swing trading - -* short-medium term trades -* open trades for days-weeks -* uses both technical and fundamental analysis -* capture a % of a price move -* requires less time -* potential short-term profits -* use TA without extensive FR -* could miss longer term trends and profits -* short-term swings can stop you out of traders - -
- -### Breakout trading - -* short term trades -* oepn trades for hours-days -* mainly use TA -* use specific chart setups -* capture a breakout in price -* require less time -* potential short-term profits -* requires dicipline -* uses day or hours chart -* could miss long term terms and profits -* short-term swings can stop you out of traders - -
- -### Scalping - -* intra-day trades -* opem trades for minutes-hours -* only TA -* uses specific TA strategies -* trade off tiny movements -* require lots of time -* potential short-term profits -* extra opportunites on top of long-term trades -* 100's trading opportunities -* use 5-10 minute charts -* requires more funds -* difficult to implement -* short-term swings can stop you out of trader - - -
- -### Dollar cost averaging - -* long-term strategy -* price agnostic -* fundamental analysis -* investments, not trading -* not interested in short term -* markets go up over time -* no mathematical advantage compared to lump-sum investing -* can face significant losses in your losers over time - - -
- - ----- - -## Order types - - -#### tl;dr - -* You can "take " or "make" prices with market and limit orders. -* The spread prevents us from making free money without risk. -* Stop order can limit our risk. - -
- -### Order book - - * open market for crypto pairs - * red: sellers; green: buyers - -### Spread - - * the difference between the best bid and best offer - * you want a tight spread - -### Market order - - * choose the amount you trade - * don't choose the price - * can trade quickly, easy to use - * can easily pay too much for crypto - * always on the wrong side of the spread - * already in a loss - - -### Limit order - - * choose the amount you trade AND the price - * get a better deal - * can't guarantee we trade the whole order - * must wait for sellers to come - * maker fees are lower - -### Stop market order - - * choose the amount you trade - * don't choose the price - * choose at what price to place your market order - * some trading strategies will need this order - * fast trading for buy/sell breakouts - * "if price gets to X, sell with a market order" - -### Stop limit order - - * choose the amount you trade AND the price - * choose at what price to place your limit order - * add on to an winning trade or specific price level (TA) - - -### Stop loss order - -* a version of a stop limit order -* stops your losses -* important for day trading, to mitigate trading risks -* choose the price level with TA -* must be below the current trading price - - -### Take profit order - -* a version of a stop limit order -* trades your position with a profit -* important for day trading, to automate trading -* choose the price level with TA -* must be above the current trading price - - -
- - --- ## Resources