So I've been talking a lot about Bitfinex recently, since I started using it about 2 weeks ago. Up until now, I've been using a variety of exchanges including Bitstamp and BTC-E to trade my Bitcoin. I just want to point out that there is a big distinction between exchanges, and trading platforms like Bitfinex. On exchanges, all I could do was sell Bitcoin at a high, and buy them back at a low, or hold some USD in the hopes of snatching up some cheap Bitcoin. In fact, I'm sure all of you reading this have been trying to do exactly that for the last few months. If you haven't heard of Margin trading, get ready to be blown away; you'll be kicking yourself for not doing so earlier.
When I first started trading on Bitfinex, I was totally tripping out about how I didn't find out about this platform and trade on it earlier. Trust me, when you start using Bitfinex to Margin Trade, you'll be wondering wtf you've been doing on those exchanges for the last few months. Because that's exactly how I felt, and that's also why I'm so excited to share it with you. Since then, quite a few people have been asking me on Twitter to cover some Margin Trading and Bitfinex trading material. So here goes nothing.
DISCLAIMER: As much as I like Bitfinex and recommend them for Trading, I do not endorse the site in any way. I do not know if they'll close down today, tomorrow, or a year from now. I also do not know how they handle their funds internally and whether that will pose a problem in the near future. Please trade with caution, and only use money you can afford to lose. If you hear anything negative (e.g. withdrawl issues etc.) about Bitfinex on Reddit/Bitcointalk/Twitter, please make sure to let me know too!

You must be wondering, first of all, what exactly is Margin Trading (http://www.investopedia.com/university/margin/margin1.asp)? In a nutshell, margin trading is basically borrowing money from the broker (trading site) for trading. Bitfinex currently offers a leverage of 1:1 up to 2.5:1, meaning that you can borrow 1 up to 2.5 Bitcoin for every 1 Bitcoin deposited. For beginner traders, I suggest changing your leverage right after you set up you account to 1:1. Keep in mind that by borrowing funds, you'll be subjected to interest charges (10-13%) which is automatically factored in when you close your position. If you're inexperienced, please listen to my advice, or you could get burnt badly (although 2.5 leverage is pretty decent). For example, if you use 2.5:1 leverage, and short sell your whole account from $800, but price goes up by $800/2.5=$320 to $1120, you're going to lose ALL your Bitcoin in your account (even lower than that actually, because of a platform's stop-out level and margin call). Of course, this can be easily managed with a good trade size & risk management strategy, which I will cover later.
There are 3 options to choose from on Bitfinex; Exchange, Margin Trade, and Liquidity Swaps. If you head to their 'how it works' page (https://www.bitfinex.com/pages/howitworks), you'll be able to find a good explaination of each of the 3 different functions available. More importantly, I will only focus on Margin Trading, because that's all you'll need to get started on Bitcoin/Litecoin trading.
Let me just orientate you the site before we go on further. Once you create your Bitfinex account, you'll arrive at this page as you see below. So first of all, click on Margin Trade, and select the currency pair that you would like to trade. Secondly, you can see your active positions held, for example I have a sell order (indicated by the '-' sign) at a price of $845, and I'm making ~5% on my trade at the time of posting. You can also see a 'close' action available, which allows you to close your position at the current market price. Thirdly, you can see some of my active orders; red is sell, and green is buy. I have already set 5 different buy positions on $BTCUSD at $701, $688, $622, $555, $471, and 3 sells at $850, $899, and $988. You can see already, that there's much more room to play around with trading on Bitfinex as compared to a traditional exchange. And lastly, the 4th section is where you place your orders. There's 5 different kinds of order types, namely Limit, Market, Stop, Trailing Stop, and Fill or Kill.
So what we'll focus on here is how to actually place orders, and how to manage your orders on Bitfinex. For more about technical analysis and an introduction to trading strategies, visit my previous blog post here (http://alunacrypto.blogspot.nl/2014/01/embarking-on-my-bitcoin-trading-journey.html). If you're thinking of starting out on trading, I highly advice reading the linked article, as well as this set of very good resources by Reddit user ClydeMachine (http://www.reddit.com/BitcoinMarkets/comments/1uedc5/technical_analysis_weekly_review_1_technical/).
Let's say we deposit 10 Bitcoins into Bitfinex for trading, and we think that the general trend is going down, and want to place a short sell to capitalize on the fall. You'll place a Limit Order, enter your price say $850, for a total of 1 Bitcoin, and click the Margin Sell button. Let's also say from Technical Analysis you figure out that the next support levels are at $760, and $700. So at the same time...

Read more, including some important tips for beginner traders, as well as an FAQ regarding Techincal Analysis and Trading, Bitcoin prices going down, and the future of Bitcoin. Full article at: http://alunacrypto.blogspot.nl/2014/01/beginners-guide-margin-trading-bitfinex-exchange.html
If you found this post helpful, feel free pay for my next cup of Coffee in Bitcoin. Cheers & Good luck trading! =) 14J7iq1cmG6BAPgHdwrUzumZYV7ro449iG
Have questions? Comment below, or PM me / Tweet me @onemanatatime whichever your prefer!

Margin trading for $LINK and $DOT pairs is now available on Bitfinex!
From today Chainlink pairs (LINK/USD), (LINK/USDt) and Polkadot pairs (DOT/USD), (DOT/USDt) can be traded with a maximum leverage of 3.3x, an initial equity of 30% and a maintenance margin of 15%.
LINK and DOT can also be held as collateral for margin trading with an initial haircut of 90%.
Discover more about Chainlink and Polkadot listing at ⬇️
https://www.bitfinex.com/posts/508
https://reddit.com/link/ig8j9k/video/12lud0w964j51/player

We have increased maximum leverage on margin trading for EOS and Litecoin pairs on our platform, and introduced margin trading and funding on DAI.
Starting from today, EOS to Tether (EOS/USDt) and Litecoin to Tether (LTC/USDt) can be traded with a higher maximum leverage of 5x.
DAI with US dollar (DAI/USD) can be traded with a maximum leverage of 3.3x, an initial equity of 30% and a maintenance margin of 15%.
DAI currency is also available for margin funding (lending).
Find out more at https://www.bitfinex.com/posts/488
https://reddit.com/link/hwgsnb/video/9y4dq4ddcmc51/player

Abstracted from my blog post. Read the Full Post at: http://alunacrypto.blogspot.nl/2014/03/how-to-bitcoin-altcoins-daytrading-fundamental-technical-analysis-profitable-trading-strategy.html. Follow me on Twitter for my latest Bitcoin/Altcoin trading advice @onemanatatime (https://twitter.com/onemanatatime).

Fundamental Analysis
I believe that for an Altcoin to be worth anything at all, it MUST first have technical aspects which are built with the future in mind. This is what solely determines if a cryptocurrency has the potential for the mid to long term. Even with 5 new altcoins launching everyday, you barely see 1 a month that can last even the mid-term.
Then, after that I judge the coins based on 7 mediating factors; developers, community, branding/marketing, popularity/virality, novelty, infrastructure, and liquidity. For more about fundamental analysis and an explanation of these factors, read up on the first few sections in my previous post about picking and trading the next profitable altcoin. In this post, I will focus more on technical analysis and trading strategies instead.
With so many coins out there, I like to use these above factors to weed out all the weaker shitcoins, and focus on altcoins which are substantially different from others, and more importantly, provide more value than other cryptocurrencies. After which, I use Technical Analysis to judge entry/exit positions for trading them.
What else do you think makes a cryptocurrency fundamentally better than another, and more sustainable as a currency?
Technical Analysis
Many will probably agree when I say that the Altcoins market is akin to the "penny stocks" of cryptocurrencies. In this sense, most altcoin markets have much lower liquidity, but have much higher volatility. Since there are over 200 different cryptocurrency markets to date, I prefer to narrow down my list of altcoins to a small handful, and buy under-valued coins or trade the breakouts. You're going to find it really tough to be watching more than 5 altcoins at the same time, so I highly suggest keeping your list small, and adapt your watchlist to the fast changing markets.
If you're new to technical analysis, here's a really good beginner's video on daytrading Penny Stocks, which also explains the basics of chart reading and an introduction to basic trading jargon that I'll be using throughout this post. The important concepts to take note of are resistances & supports, breakouts that coincide with high volume, and the general idea that "what goes up must come down". See video here: http://www.youtube.com/watch?v=HYK2a77TjvU
So after you get the basics sorted out, you should be ready to learn how to trade! I'm gonna break this intermediate technical analysis tutorial down into five main portions, and have compiled videos from other trading experts to give even beginners a better overall idea, and teach you all you need to know to devise your own Bitcoin & Altcoins trading strategy.
1. Top Down Analysis
Firstly, lets look at the top down analysis method of reading charts. I always begin by trying to understand the market from a bird eye's view. Compare both charts from a long term period (e.g. 1d) against one from a shorter period (e.g. 15m) to get a holistic view of the market. This will help give you a general perspective of market trends, while peaks & troughs give you an idea of market resistances & supports.
Use these basic resistance & support levels to judge entry/exit prices. In general, previous high and low points are new resistances or support depending on where the price is, and points where u can see big breakouts will be the new short term resistance/support. To get a better idea of what I mean, watch these videos by Jason Stapleton who explains top down analysis, resistances & supports, and structure.
http://www.youtube.com/watch?v=M9yCc7lD21Q
https://www.youtube.com/watch?v=tJmMU-8yicM
2. Retracements
The concept of retracements is, in my opinion, the most important one that any trading enthusiast must grasp in order to understand how the markets flow. In essence, a retracement is a temporary price movement against the established trend, and helps us understand that the markets move in wave patterns as highlighted by the Elliott Wave Theory. One way to look at it, as highlighted by this video below, is that most price-actions follow a pullback rule to fibonacci retracement levels (38%, 50%, 62%).
http://www.youtube.com/watch?v=7VSWqM0jfIQ
The most important concept to take away from this is "what goes up must come down"; that price movements in one direction are always followed by retracements in the opposite direction. Of course, not all movements will follow the same pullbacks, and these levels should only be used as a guide. Here's another video: "Understanding Fibonacci retracement lines: https://www.youtube.com/watch?v=KzHjxPxGzMw".
So the question then is, how will we know if this counter-movement price action is a retracement or a reversal? There is no way to say for certain...

Read the full post on my blog at: http://alunacrypto.blogspot.nl/2014/03/how-to-bitcoin-altcoins-daytrading-fundamental-technical-analysis-profitable-trading-strategy.html.

3. Trading on Volume
Another important concept you need to understand is that large price movements almost always coincide with high trading volume.
With this in mind, this is where the liquidity of an altcoin also comes into play; the higher the trade volume of an altcoin, the lower the spreads, and the more likely you will be able to make some profitable trades from it. In general, the trade volume is a good indicator of, and is proportional to the popularity of the altcoin at the current time.
Apart from the actual trading volume itself, another good indicator is the change in volume over time; if you realize that the trading volume of an altcoin has been steadily increasing over the last few days, it could be an indication that a big price movement is coming up.
4. Breakout Patterns
The last concept I want to share is breakout patterns. Although most people are familiar with this concept, many do not know how to profit from them. This is one of the best tools to use for planning your entry positions, while there are various ways to do so, which are highlighted by these first two videos below:
https://www.youtube.com/watch?v=6YZ4ORz-UJ0
http://www.youtube.com/watch?v=3gN-6D8nH0E
5. Advanced Trading Strategies
Now comes the fun part: how can we take all that we've learnt so far and put into good use for trading Bitcoin/Altcoins? Here are some pointers for you:

• What we've learnt is more of a tool to make better entry and exit positions.
• Keep in mind trading the bitcoin & altcoin markets as you watch the rest of these more advanced videos, and I hope you'll be able to gain some insights to build up your Bitcoins & Altcoins trading strategy.
• Granted, forex & equities trading is much different from bitcoin or altcoin markets. However, the fundamentals are the same, and you should learn to draw lessons from the strategies talked about in the videos to supplement your bitcoin/altcoins trading strategy.

In the next videos, more advanced trading strategies and chart patterns will be shared. These strategies may seem very specific, but my goal is to give you better understanding of how these analysis tools are used, and to give you an idea of how different tools can be used to develop a single trading setup. The specifics are not important; what I hope to achieve is to open up your minds to new ideas, expand your trading knowledge, and ultimately encourage you to explore a diverse variety of trading strategies.
Read up more on some of the main ideas discussed:

• Fibonacci Analysis
• Fibonacci Extensions vs Retracements
• Elliott Wave Theory
• Harmonic moves/pattern

Others

• Cryptocurrency Portfolio
• My Trading strategy
• More trading Tips

Read the full post on my blog at: http://alunacrypto.blogspot.nl/2014/03/how-to-bitcoin-altcoins-daytrading-fundamental-technical-analysis-profitable-trading-strategy.html. If you'd like to discuss any ideas or have burning questions, feel free to email me at alvinlee133(at)gmail.com or hit me up on twitter @onemanatatime.
P.S. If you're new here, make sure to check out my previous posts about Bitcoin & Altcoins daytrading: http://alunacrypto.blogspot.nl/2014/02/how-to-pick-trade-next-profitable-altcoin-bitcoin-daytrading.html http://alunacrypto.blogspot.nl/2014/01/beginners-guide-margin-trading-bitfinex-exchange.html http://alunacrypto.blogspot.nl/2014/01/embarking-on-my-bitcoin-trading-journey.html
P.P.S. If this post helped you, feel free to buy me a cup of coffee!
Cryptsy Trade Key: 9c1e289981a685bf0b8a4e48bc00b35eb1380afa
BTC: 16ka98tnhs9fAjWEXRmEWVrPfTEwmr9orV
LTC: LW4qr8aSfgTwGuU6uvEjnhNKRyJJR9iUbR

We have increased maximum leverage on margin trading for ethereum and eos pairs!
From today, Ethereum to US dollar (ETH/USD), Ethereum to Bitcoin (ETH/BTC) and EOS to US dollar (EOS/USD) can be traded with a higher maximum leverage of 5x and a lower initial equity of 20%.
Find out more at https://www.bitfinex.com/posts/457

We have increased maximum leverage on margin trading for bitcoin, Ethereum, Litecoin and XRP!
Today, XRP to US dollar (XRP/USD), XRP to bitcoin (XRP/BTC), bitcoin to euro (BTC/EUR), bitcoin to Tether (BTC/USDt), Ethereum to Tether (ETH/USDt), and Litecoin to US dollar (LTC/USD) can be traded with a higher maximum leverage of 5x.
Find out more at https://www.bitfinex.com/posts/458

We have updated margin trading on Tezos!
From today, Tezos pairs (XTZ/USD), (XTZ/BTC) can be traded with a lower initial equity of 30% and a higher maximum leverage of 3.3x.
XTZ can also be held as collateral with a lower haircut of 30%.
https://www.bitfinex.com/posts/456