Crypto trading has become one of the most popular ways of making money and earning passive incomes. Not only is it a popular business, it is a profitable one when you know the right buttons to press. In contrast, it can be a disastrous venture when you do not know the success hacks.
More so, there are different types of crypto trading but whichever trading type you opt to adopt, the same success principles can be applicable. Without further ado, let's get to the business of the day.
If you ever want to get deeply involved in trading cryptocurrency either in the spots market or derivatives market (futures trading in particular) then you should pay close attention.
Those who know and observe these trading hacks usually do end in good profits while the careless folks and inexperienced always become preys to the market.
It costs $0.00 to wait for a good trading signal - Steve Burns
Trading signals can be said to be triggers that tells a person whether to buy or sell any cryptocurrency asset based on a pre-determined set of criteria or analysis.
Many experienced traders and investors have different methods of analysis employed in order to arrive at their trading signals.
While some rely on fundamental analysis alone, which is all about news, updates and/or information; some engage charting that is, technical analysis in arriving at signals. Equally, some rely on both in getting their triggers to act in the crypto market.
When you have a source(s) of trading signals and you at all times, wait for these triggers to click before entering or exiting the market, it is definite that, you'll always make profits.
However, some traders get impatient sometimes hence, they go into the market carelessly and without proper forecasting. While some inexperienced folks often initiate trades because of the fear of missing out (FOMO). Oftentimes, these acts result in losses.
Therefore, it is imperative that as a trader, you have something that serves as a source of your trading signals. Could be by always paying close attention to news through following reputable news/ media channels/ handles or blogs. Or by learning the art of charting through the use of certain analytic indicators.
Very importantly, after having sources of trading signals, learn to wait for the signals to trigger before initiating trades. I mean, what's the point having trading signals when you won't obey them?
If you must know, timing and having proven strategies is very crucial in the business of trading cryptocurrencies. If you go in at the wrong time, you will end up in losses. Also, if you don't exit at when you should, you'll see losses. Having the right timing is therefore a needed skills to make profits, mitigate risks and equally preserve trading capital.
More so, impatience, fear and greed are the core enemies in the business of crypto trading. If you can overcome these three then be sure to make it big in the business.
What then does it take to wait for the signals to be triggered? Nothing but patience and discipline. It doesn't cost you a dime to be patient but impatience and indiscipline will always cost you lots and lots of money.
There's a saying that if you want to be successful, you have to do what successful people do. In this case, we can say that successful traders have the virtue of patience and discipline. So, whoever wants to trade crypto successfully and profitable must learn to be patient. For me, I think I'll choose patience over impatience. What about you?
Profitable crypto trading entails putting on good risk/reward trades after the right signals with the right position size - Steve Burns
In the above, three things are outstanding which includes: good risk/ reward trades, right signals and right position size (this is particularly for futures trading).
You should never forget that crypto trading is very risky hence, risk management should be your closest alibi. Which is why it is of maximum necessity that you always weigh the risks involved before initiating any kind of trade.
Having the right signal is never enough; it is never a guarantee that your trade will go as planned. There are many factors that could cause your trade to go south; never forget that uncertainty rules the cryptocurrency market.
Hence, whenever you put a trade in motion, it is wise to know when to take profits and when to stop your losses. You shouldn't let the greed of making large profits cause you to stay longer than necessary in a trade except you want to do long-term.
You should always have a moderate take profit target as well as a Stop-Loss. That way, you will be playing safe. Trying to make all the money in one trade is not a very good path to tread. Likewise, choosing not to cut losses and having unnecessary hopes when a trade is clearly going south will always lead to liquidation.
To lose some and save capital of losing all at once, which is preferable?
This then brings us to the issue of position size. Position size is simply the amount of dollars you stake in a trade. Having the right position size is directly proportional to the total sum in a particular trading account.
Meaning that $1000 can be right for one trader to place in a trade but wrong to stake for another trader. It's a function of how much a particular trading account holds.
With reference to futures trading, for someone whose trading account holds only $1000 or $1,000,000, it's not very wise to use more than 7% or even 5% in one position. To mention that you use more than this amount in over 5 positions is reckless. Your liquidation rate might just be faster.
However, it's your funds and no one can tell you how much to use. Generally, for a person who seeks to last longer in the market, it is wisdom to always use moderate margins in his positions. However, greed is what causes a lot of traders to use risky margins in their positions.
Avoid trying to double your trading account very quickly
It is a well-known fact that the quickest way to getting rekt is trying to double or triple your trading account in a very short space of time. Greed is dangerous and I don't know how to stress it enough. I've been greedy in the past and I know how it ended for me. By all means, greed should be discarded.
Yes, a lot of money can be made in crypto trading but crypto trading is never a get-rich-quick-scheme. Generally, no business is a get-rich-quick-scheme; wealth is created by making money little by little and not by trying to make all the money in the world in just one day.
Wealth is a process and never spontaneous. So, when you try to double your account in days, you will end up exposing yourself to liquidation.
Note that, the intention of doubling account quickly will cause you to trade without clear-cut plan, strategy and proper risk management. You'll tend to be impatient, reckless and greedy. Equally, you will want to trade everytime without waiting for the right entries. All of these are catalyst to losses and worst case is liquidation.
In the end, instead of doubling account, you'll end up blowing up the account with ease. The goal should not be doubling account in a short period of time rather every trader's goal should be making consistent profits.
When you make good profits consistently, overtime, you'll double and even triple your account with less risk and emotional downtime.
Crypto trading requires a lot of skills because of how volatile and risky it can be. However, these are but just a few tips on having a smooth and profitable cryptocurrency trading journey.
Trade safe!
Ndianabasi Tom
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