The explanation of the basic elements of trading opened the 2nd day of Labitconf 2020.
The second day of Labitconf 2020 took place on Tuesday 8th December, a space that is being held virtually and free of charge for all. To begin the day, the conference presented a panel entitled „Trading in Crypto for Newcomers“, which was led by Aníbal Garrido, a trader and educator in the area of cryptomone currency operations.
To begin his presentation, Garrido decided to define the elements of trading, and for this he outlined that trading is „the investment technique that consists of the study of the markets through technical analysis and fundamental analysis to invest in different financial instruments with the aim of obtaining a profit“.
Garrido then focused on explaining the basis of trading through the „3M: Mind, Money and Method“. Explaining this, Garrido said that the base of the Mind or Mind represents 60% at the time of trading, he continued by adding that Money represents 30%, while the strategy or Method only represents 10%, even though many consider it to be the most important at the time of trading.
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Focusing on each of the M’s, Garrido added that the foundation of the Mind requires developing and maintaining an adequate trading psychology, within this he explained that the enemies of psychology which are greed, fear and despair need to be fought with prudence, confidence and knowledge.
On the money side, he explained that it is necessary to „generate and control a correct monetary and risk management“. Regarding this, he defined monetary management as that which determines the distribution and size of the position in which an operation is initiated, while risk management expressed that it was the operational part that places the profits and losses of monetary management.
Finally, when he explained the strategy, he explained the elements of the technical analysis and the fundamental analysis. Defining each of these analyses he explained that the fundamental one refers to the methodology of financial study that seeks to discover the value that an asset should have according to its intrinsic properties, while the technical analysis defined it as the study of the behaviour of the historical evolution of the market that through the use of graphic data allows to forecast the possible behaviour of an asset. In this way, the aim is to evaluate the „history of the asset“ in order to determine what it can do again.