Last Updated on March 11, 2023 by cryptocreed
How to make crypto trading successful
If you think that paying for pieces of training will tell you the secret to success and share a win-win strategy, you are mistaken. Paid training sessions give you the same information that you can find yourself. The only difference is that they are paid and yes, you don’t have to make up your own training plan. But if you really want to become a trader, you will be able to pick out the main points from what you read.
The rules of any security are written in blood: if a turner has paid for a lesson with his finger, a trader making one of the most fatal mistakes risks giving up part of his portfolio, while an inexperienced trader risks losing everything in one evening.
Tips for profitable crypto trading
Not every eager trader is ready to spend day and night on lessons. For some, it is easier to work with automated platforms such as https://stoic.ai/ stoic to gain profit at once without mistakes and drawbacks. But nevertheless, you need to know what to do to be successful at trading:
- Every trade should be deliberate. Only start trading when you know exactly what you are doing it for, and you have a clear strategy and a plan of action for every scenario. Not all your trades can be profitable, because trading is a zero-sum game (if you make a profit, someone else makes a loss). Oh, and you must understand that it is the big whales who run the altcoin market, and they are also responsible for placing huge orders for hundreds of bitcoins in the order book.
- Planning trades with clear stops and targets. For every trade, you should set a clear profit-taking level and, more importantly, a stop loss level at which you will be limited to a loss. Choosing a stop-loss order level involves calculating in advance the maximum amount of loss you can afford for each position. Trading without a stop-loss order will very quickly lead to huge losses, but there are many factors to consider when choosing the correct distance from your entry-level to the stop, from the volatility of a particular currency pair to the purely psychological aspects of trading.
- Fear of missing out on something important. You have probably seen disappointment more than once when a particular coin «inflates» like crazy by tens of percent in just a few minutes. Everyone thinks at such moments: if I had entered earlier, I would have made a significant profit right now. Keep your wits about you and continue with the assets you were involved in before.
- Risk management: not just for crypto trading. Truly successful traders never wait for the beginning or continuation of the next growth wave to close a trade that has already reached its profit target. The secret of success is that a relatively small profit from each trade gradually forms a total profit level over a certain time interval, for example, a month. Expecting growth to continue after the target is reached is a totally unnecessary risk.
You shouldn’t read other people’s analytics, but you really shouldn’t read other people’s analytics from all the traders. There is a lot of information online about the crypto world and things change so fast that it becomes difficult to keep track of even important events and news. To avoid confusion — look for like-minded people, who share your approach to trading and market views.