Cryptocurrency Trading Plan

A trading plan is a set of rules that helps you enter and exit a trade and essential for risk management. If you are a new trader, entering a volatile market without a trading plan does not sound like such a great idea…. you’re most likely going to lose money. You can’t let emotions control your actions in these markets or you will get wrecked, so follow a plan strictly and if you can’t than you probably shouldn’t be trading.

1. Do not invest money you can not afford to lose
2. Always use your trading plan when getting into a trade
3. Always FOLLOW your trading plan even when you are in doubt
4. Always use a stop loss
5. Do not spend all your time watching the graph after you have made an entry. Plays out too many different scenarios and you may want to change your original entry.
6. Tracking every trade is important. Keep track of progress, it is important to know if you are profitable or negative
7. Having entry rules (Why entering the coin?) If you don’t have a legitimate reason than you probably shouldn’t be buying it. Good entry spot on TA or did you see it on a Facebook group post?
8. Having an exit plan. Being a stop loss at a comfortable rate 1-10% or selling at a determined profit.

Long Term Trader:
• Do not trade money you can not afford to lose
• Use 5-10% of your trading balance
• Look at the bigger time frame, is It up trending? Where do you see the coin in 1-2 years?
• Recommend storing coins in a wallet rather than exchange for security reasons
• Sell 50-75% of your stack at 100% gains and ride out the rest
• Have a target(s) in mind and take profit/sell once it is reached
• Do not let news affect your trade
• Do not sell at a loss, if you are investing into a long-term coin most likely it offers a good solution or technology so if you are in a loss, price will rebound. In these markets its literally in your hands, wait it out!

Short Term Trader:
• Do not trade money you can not afford to lose
• Use 2-4% of your trading balance
• Even though you are trading short term, still important to look at the overall picture. Have a feeling to where the coin is headed
• Trade high volume coins, bigger price swings
• Buy on support, look for bounces, don’t just buy any coin.
• Use resources to help you trade and track such as tradingview, blockfolio, ect
• Always use a stop loss! 3-7%
• Keep minimal positions open, its hard to track over 6-10+ open short trades. Focus on a few and execute them perfectly.

Portfolio Setup:

Here is an example of my portfolio. You can structure it how ever you want but I recommend you do not put all your eggs in one basket. I hold 80% of my portfolio and I actively trade 20% of the remainder. With the profits I than balance out the portfolio, so I will add more ETH, BTC and add more to my trading power. You should never be ALL IN on a trade. They can work sometimes but you can get burned bad. Every trader is different, use this as a template.

Join our discord https://discord.gg/zSeAY6P for more tips, trading calls and helpful information :)