For every Crypto-currency trader, having a definite trading strategy is crucial to trading success and also essential for risk management. Simplifying your trading plan would go a long way in in improving your trading strategy and also increasing your level of success.
Below are important tips for simplifying your trade plan:
- Always have a trading plan before you buy.
- Do not spend too much time watching the charts; find your entry and make your trade. (Stick to Your plan)
- Stay logical, avoid panic and trading news, control your emotions
- Avoid using too many indicators for trading
- Beginners should stick to only a few trades at any given time.
TIP 1 - Plan Your Trade and Stick to it.
• If you don’t plan your trade then you can get stuck. You must have a plan so you can minimize stress. Trading without a plan would make it easy for you to get lost.
• Always guard yourselves with a stop-loss
• Be Consistent
TIP 2 - Track your Progress!
• Keep a trading journal and enter every trade you make.
• Your mistakes are your most valuable lessons. Don’t get discouraged, learn from them and keep going.
• Writing down why you entered a trade will make you become familiar with how to find more entries
Trade Journal Entry Example
- Coin: Antshares
- Entry: 4.6324
- Exit: 6.77539
- Stop: 4.1334
Entered because I am aware strong indications reveals there would be a rise in the rate adoption of Antshares in China and the rest of the world.
TIP 3 – Staying Logical
• Avoid chasing coin, just step back, relax and find a good trade. Chasing coins won’t help you at all
• Do not trade based on news, although it is good to be well-informed. Good news, bad news, real news, fake news all causes panic.
• While panic pumps and dumps may fetch you quick cash, the risk involved is also very high.
TIP 4 – Don’t get yourself inundated
• Learning how to trade on coin can be very tricky, so it is wise to only increase your amount of positions when you have the capacity to manage them
• Learn to apply numerous trading strategies at once (short term/midterm/long term)
• Use a Portfolio manager to track all of your coins (Blockfolio, Cointracking.info, e.t.c)
I hope this post is helpful resourceful and educative.
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Happy Reading.
Have a great day.
Love you all. Fellow Steemians