This guide 4 points that beginners needs to learn before jumping onto advance strategies
1. Candlestick core basics
2. The trend
3. The execution of trades
4. Staking (passive income)
1. Candlesticks (Opening, Closing, High, Lows)
Understanding Candles
Every candle on a chart shows what happened during a specific time period
Each candle has 4 key parts:
Opening Price: where price started
Closing Price: where price ended
High: highest point reached
Low: lowest point reached
Candle colors:
Green Candle: close is higher than open
Buyers were slightly stronger
Red Candle: close is lower than open
Sellers had more control
Simple takeaway:
That’s all you need at first. Once you read candles this way, charts feel less confusing and more like a calm conversation with the market.
2. The trend
A trend means when the price is following a certain direction (Up or down) and it's holding onto it, then we can consider it a trend
There are two types of trends
Bullish and bearish
For example, if the price keeps breaking above the higher high, we can consider that a bullish trend
If it keeps breaking lower lows, we can consider that a bearish trend
Here's a practical example of a bullish trend
What to look for:
Higher highs
Higher lows
Overall direction sloping upward
Even when price dips, it often finds support and continues higher
This usually means buyers are quietly in control
3) Bearish Trend (Down )
A bearish trend means price is generally moving downward over time
What to look for:
Lower highs
Lower lows
Overall direction sloping downward
Price may bounce sometimes, but if it keeps making new lows, sellers are in control.
4) Quick Recap
Bullish = Up
Bearish = Down
Read candles first, then read trend direction
3. What Is a Time Frame?
Time is everything. Time is life. Everything in the world moves with time.
When time starts ticking, things start moving. If time stops, nothing moves. So what is a time frame in trading? A time frame is the amount of time a candlestick takes to form, move, and finally close.
In simple terms: all candle activity (open, high, low, close, bullish, bearish) happens within a specific time window. To make this simple, imagine candles are like timer bombs:Each candle has a timer attached to it.
Traders choose how long that timer lasts.
When the timer starts, the candle begins forming price action.
When the timer ends, the candle closes and a new candle opens.
Common examples of time frames:
1 minute: one candle forms and closes every 1 minute
5 minute: one candle forms and closes every 5 minutes
Daily: one candle represents a full day of market movement
This allows traders to view the market at different speeds and from different perspectives. How traders choose time frames:
Higher time frames (daily, weekly, monthly)
Better for long-term focus
Candles take longer to close
Less need to watch charts constantly
Lower time frames (1m, 3m, 5m, 30m)
Better for faster opportunities
Candles close quickly
More candles form in less time, creating more short-term setups
Two main categories:
LTF (Lower Time Frame): faster candles, shorter-term trading
HTF (Higher Time Frame): slower candles, longer-term market perspective
Final takeaway:
This is the basic idea of how time frames work in trading.
4. Basic Execution Guide: (TP/SL)
Take Profit and Stop Loss - Buy Trade (Long)
When you decide to buy (go long):
Your stop loss is placed below your buying point.
It acts like a safety net.
If price drops too much and hits this level, the trade closes automatically to limit your loss.
Your take profit is placed above your buying point.
This is your planned profit exit level.
It helps lock in gains before price may reverse.
Simple way to think about it:
You give the trade room to move upward.
You protect yourself from large drops below your entry.
Take Profit and Stop Loss - Sell Trade (Short)
When you decide to sell/short the market:
Your stop loss is placed above your selling point.
If price rises instead of falling, this closes the trade to limit your loss.
Your take profit is placed below your selling point.
This is where you exit and secure profit from the downward move.
Simple way to think about it:
You protect the trade if price moves against you.
You let favorable downward movement work in your favor.
Quick Rule Recap
Buy (Long):
Stop loss goes below entry
Take profit goes above entry
Sell (Short):
Stop loss goes above entry
Take profit goes below entry
Always define both levels before entering a trade.
5. Staking (Passive income)
How to get cashflow from your crypto investments
Consistency + patience + compounding. (Most people chase pumps. Whales build positions, stake, compound, and let time do the heavy lifting )
Example Used: WCT
I am using WCT because I own it myself and I believe it is one of the best and easiest starter tokens for staking return and stability.
For example, WCT is currently a good one, so we are going to project 1 year growth @ 2.4% monthly. I recommend WCT as anyone’s first stake; the payouts are simple and hit every Thursday.
For simplicity, I'm using an initial balance of 100,000 tokens. These figures are for educational purposes only and are meant to demonstrate how staking and compounding work. *
WCT Token Growth (1 Year @ 2.4% monthly)
Full-year compounding Starting amount: 100,000 WCT APY gain: 24% Time: 52 weeks Monthly = Rewards % / 12 = 2% Daily = Rewards % / 365 = 0.5%
Formula used:
A = P(1 + r)^n Where: P = 100,000 r = 0.024 n = 52
Math:
A = 100,000 × (1.024)^52 Final Result: ≈ 343,000 WCT
TL;DR:
100K → ~343K in 1 year your 3x your initial investment, even at a 90% loss, you would have 3x the amount of coins and should exit with 1.5x even at total loss on a long-term stake compound. Weekly Payouts every Thursday If you time a stake right, your return is in coin, and the price goes up, so your gains compound dramatically.
Reality check:
Strong compounding, but still within a believable range :Pepe_green_chart: This is how steady % gains stack over time :time:
1% DAILY COMPOUNDING (FROM $1,000 → $100,000)
The idea
Start with:$1,000 Grow it 1% per day Reinvest profits (compound)
Answer
It takes about 463 days≈ 1 year + 3 months
What growth looks like
Day 1 → $1,010
Day 30 → ~$1,350
Day 100 → ~$2,700
Day 200 → ~$7,300
Day 300 → ~$19,800
Day 400 → ~$54,000
Day 463 → ~$100,000
Reality Check | IMPORTANT
1% daily = ~3,678% per yearExtremely hard to maintainUsually requires high risk
Most people lose money trying this
Simple takeaway
Math = possibleReal life = very difficult