How to become successful in cryptocurrency trading.
Becoming a successful crypto trader is not easy-peasy. Trading Cryptocurrency takes discipline, but I can guide you on how to become successful in Cryptocurrency trading if you would be able to read and digest the content of this article to the end.
I understand that you might have lost money a couple of times while trading cryptocurrencies, and you will begin to wonder if something is wrong. I will explain the cheat sheet for becoming a successful crypto trader.
Practice makes perfect and without enough knowledge, discipline, and training. You can’t become a successful cryptocurrency trader.
The cryptocurrency market is one of the fastest growing industries with a market cap of approximately $1tn and total number of cryptocurrencies above 20,000 with a 24h trading volume of more than $60bn from coinmarketcap.com.
The Cryptocurrency market is big enough for everyone and there are plenty of opportunities Let’s skip to the good part.
STEPS ON HOW TO BECOME SUCCESSFUL IN CRYPTOCURRENCY TRADING;
- Create a Trading Plan and stick to it: A perfect trading plan should be able to give well-detailed answers to the following questions:
a. The What? (What you are to do)
b. The When? (When you will do it)
c. The How? (How are you doing it)
d. The Why? (Why are you doing it).
Having your trading plan is halfway to becoming a successful trader, and sticking to it strictly, would make you a successful trader.
Now, What should your trading plan contain? Your trading plan should consist of the following;
a. Entry and Exit rules
b. Risk Level
c. How much time can you dedicate?
d. Expected Returns
e. Will your trade be done manually or automated(use of Cryptocurrency trading bot)
f. Coin pairs that you would trade
g. The type of Analysis you use Fundamental, Technical, or Sentimental analysis
h. Trading strategy
Failing to plan leads to Failure. Having a Trading plan can’t be overemphasized. Make sure your Trading plan has been tested on a demo for a minimum of 3 months before using it on a live trade.
2. Trading journal: Keeping a Trading journal would make you a successful trader. It helps to measure and improve your performance. A trading journal would help you improve your Trading. Your Trading journal should contain the following;
a. Entry and Exit trigger
b. Trading patterns that lead to your loss/profit
c. The Timeframe you used in taking your trades
d. The strategy/setup used
Keeping a Trading journal is worthwhile. It’s a stepping stone to becoming a successful trader.
3. Determine the type of Trader you wish to be and stick to it: To be successful in Cryptocurrency trading, You need to consider the type of trader you wish to become based on your personality and the amount of time you can spare on analysing the charts, your level of patience, and your capital. For instance; You can decide to be;
a. A scalper if you can spare long hours looking at the chart and also have a high level of patience. If you have a job, being a scalper might be hard for you.
b. A Day trader is like a balance between scalpers and swing traders. As a day trader, You try to analyze and take a trade. i.e., One trade/day.
c. A Swing Trader, if you can have the patience to hold your trade for days, If you can’t monitor your charts every minute, Then you can try Swing trading out.
4. Set Realistic Trading goals: The problem with most Cryptocurrency traders is Greediness. They want to turn $100 to $1m overnight and start dreaming of buying houses and buying a Porsche. Trading crypto like that is the wrong mindset to approach trading instead set a goal maybe you want to earn 10%-20% from your trade per month, per week, or per day, depending on the type of trader you are. Making 10% or 20% of $100,000 isn’t bad but make sure you have a realistic goal when trading and stick to it. Trading should not be done that way, Trading is like a marathon and not some 100m race.
4. Practice: You can’t keep watching Youtube videos and reading articles upon articles without practicing what you have learned. How can you become successful if you do not make use of the knowledge you have learned? It’s impossible to become perfect without practicing. It’s a waste of time and resources to keep learning without practicing what you have learned.
5. Capital Management: Keep track of your capital, Do not risk more than 3% of your trading capital in a single trade. Losing your capital is one of the worst things that can happen to you as a Crypto Trader, and it’s depressing. Put into factor the amount of money you would be able to withstand losing.
6. Trading Psychology/Emotions: Greed, Fear, and Gut feeling are three terrible things that can becloud your thinking when taking trades. Be calm and calculative when taking your trades would help you in becoming a successful crypto trader. Believe your trading plan more than your gut feelings, and stick to it. I know it is hard to overcome your fears, greed, and especially your gut feelings, but being calm, calculative, practicing, and better understanding of trading will help you overcome these things.
CONCLUSION
It’s easy to become a successful in Cryptocurrency trading with discipline, access to valuable knowledge, and taking the lessons you learned from this article seriously. You would become one,
Always remember to be your trader, Be confident in your trades. Don’t follow someone’s trade blindly, And remember Trading is your business, treat it as one, and always be prepared, There would be losers definitely but you can’t afford to be one. You will lose money occasionally but always make sure your win rate is more than your loss rate.
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You can connect with me on Telegram via: https://t.me/Cryptomayor0
