We’ve reached a point where good trading opportunities occur on a daily basis. With so many coins out there, it’s impossible to be on top of all of them. It often happens that you buy at the top and face a big drop in price afterwards.
Entering in a hasty trade without a clear strategy is a terrible idea. But if you put in some effort and learn how to analyze the coin/chart, set up entry, exit and target points and adjust position size correctly, you will be able to know the difference between a good and a bad trade. Your goal must always be to pick the best possible trade. And remember a good trader always trades less.
The cryptocurrency market is booming and it will continue to do so. What started in 2009 can’t be undone? More and more people are learning about cryptocurrencies and are thinking about investing in them. Trading nowadays seems simple, because we have the knowledge and the experience. Visit here to read about the cities to spend your bitcoins.
In order to make your life a little easier, especially for beginners, I listed some of the topics, you have to follow consideration before start trading:
1. Don’t let Bitcoin out of sight
Bitcoin is an essential part of cryptocurrencies. You must always know what BTC is doing. There’s a general rule that when bitcoin’s price is rising, all other currencies will be in red numbers. And when bitcoin’s price decreases, alts will be back in green. When you’re not sure what to expect, trade with the good old bitcoin/fiat currency pair. The only downside is that there are not as many options on the table.
2. Volatility has to work for you, not against you
This market is so volatile. The volatility works both ways. It can make you rich or it can leave you penniless if you are foolish. It’s worth mentioning also that some exchanges offer margin trading as well. I strongly recommend you stay away from it if you are new to trading. Keep in mind that things can change very quickly.
3. Practice with small trading position size and master the exchange
If you just started trading, your position size should be small. Well because you have to be 100% sure of what you are doing when you want to execute a specific order. If you master one exchange it doesn’t mean you know them all. When you trade on five or more exchanges you will notice they differ in many ways. Before choosing an exchange, always check the following characteristics: option for short/option for margin trading and other features.
4. Enter a trade only when you have a clear strategy
I mentioned a few things already. Maybe you’ll get lucky many times but in the long run. In order to achieve success, you have to combine technical analysis. Once you enter a trade with calculated position size, you will know how much risk you are willing to take and where you will take your profit.
5. Adapt, analyze trades and learn from your mistakes
As a trader, you must constantly improve in order to survive and thrive in this fast-paced market. This is a vital part of trading. There’s lots of room for improvement even if you are an experienced trader. Try to be on top of all major global cryptocurrency market events. Adapt from them and avoid unnecessary risks or take advantage of them and secure easy profits.
6. Have your own opinion
Unfortunately, the unregulated environment of cryptocurrencies has attracted the attention of scammers ever since it was created. Do your own research.
7. Control your emotions
Easier said than done. Emotions are a constantly unwanted companion in trading. It’s easy to get carried away by greed, fear, hope or excitement, among others. Different situations will bring different emotions and it is up to you how you will handle them. When you have a bad trade, the negativity surrounding the outcome can carry over into the next trade. It may happen that you won’t enter your next trade due to the fear of losing. On the contrary, when you have a winning streak you might think you’re invincible and push trades into the market at the wrong time. Before entering a trade, it always helps to ask yourself for the reasons behind the actions that you’re about to take.
8. Faith the investment
After all, everyone should have their own self confidence. In business and its investments, we need more confidence than in the brain.
Start with less investment first, so that you’ll get some confidence and keep your patience. You have to make your mind a little stronger. If your investment fluctuates slightly, you’ll be happy to do so. I hope this article actually helps you in some way. It may be quite a good time for you now.
For good returns, you should invest yourself in bitcoin, but you need to remember that you keep your mind fully correct because you have to go ahead with it, you have to be forced. And get the advice that a crypto expert should have.