It is a very big field and in fact, if a trading trick works best for me, it might not be the case with you. So what I am trying to say is that crypto trading requires self-analysis, discipline, and consistency. Even though a lot of practices are mentioned in this article, based on the majority of the users, we advise you to get in the field and start experimenting in order to maximize the profits for yourself. You could be the next trading guru.
Define your goals
It is very important to have goals in life, especially when your livelihood depends on it. I am going to assume that you are pursuing crypto trading because you want to do it full time. Well, that is great!
See, if you do not have a goal in mind, you will use random tricks to get yourself ‘somewhere’. While experimenting is quite good, without a goal, you could land anywhere – even at a place that you never wanted, or hated in the first place! Therefore, we advise you to set a goal, let’s say becoming a billionaire in 10 years from now and launching your own ICO to get the crypto token registered at a renowned exchange. That sounds like a big aim and trust me, if you aim big, you won’t be hesitant to try pretty much anything you can. However, the approach will be highly filtered and you will only pick up the techniques in which you feel the goal can be achieved.
Getting even specific about trading, please note that the goal you set for yourself, plays a pivotal part in determining the trading style – which happens to be a very core aspect of how and how much you earn through trading. There is yet another factor which determines the style of trading and that happens to be your personality. For instance, if you are an anxious person, then you might not be able to hold the coins for long. So either go with your personality and develop the trading habits accordingly (e.g. holding the coins, day trading, etc.), or determine what’s working for you financially and mould your personality.
The crux is, if you want to earn consistently and hit the goal(s), there cannot be a mismatch between your trading practices and personality (which is all about your temperament).
Choose the best exchange
Rating plays a vital role when it comes to selecting an exchange, but you should not solely depend on that. In fact, HighBank encourages you to test its platform and determine whether the exchange, transaction fee, features and support team provide decent feasibility or not. What’s even exciting about our exchange is that unlike most of the market leaders like Binance and Coinbase, we are not centralized.
However, the interface and features are as close to a centralized exchange as possible and hence, you enjoy the luxury of a centralized exchange while trading in an utterly secure environment, which happens to be yet another decisive factor for selecting an exchange.
Decision making is very important in this business. Although you learn a lot from experience, it is important to have a clear sense as to how would you make trading decisions in a given situation. At least do some homework.
Now when you enter the business, start experimenting with the techniques you analyzed before. Suppose in 1-2 years, day trading proves lucrative for you. No need to disturb it at all. At some point, if you plan to become a HODLer, do that with some extra funds. Do not risk the primary business model. Whatever proves lucrative for you for a couple of years or months, stick to that instead of just hopping from one strategy another by leaving a proven business technique behind.
Moreover, you should also be consistent about the reasons or factors upon which you base your trading decisions. For instance, some of you might want to take advantage of speculations in the crypto niche, while others might just want to base their decision on technical analysis.
It is also very crucial to pursue a strategy which is adaptive. Remember, you are not in a stock exchange where metrics stay the same for 5-7 years. It’s cryptocurrency – the technology is changing and your strategy must be adaptive.
Calculate every time
Probability is a very basic factor in all types of trades, cryptocurrency in particular. If you are a newbie, we advise you to study the trading routines and practices of different traders. You should not only focus on success stories. In fact, lay keen emphasis on those trading practices as well which lead to catastrophic losses. It is a crucial measure to determine what leads to what…
Moreover, once you have spent some time in the industry, it is also important to evaluate your performance and decisions in the past. Determine whether particular decisions or situations lead to a profit or loss and then after making enough calculations, proceed with confidence.
Although there are several mathematical formulas available on the internet, no need to buy that theory. Study on your own and then make the decision based on life experiences.
Keep a record and analyze consistently
If you are making a one-time trade and never plan to trade again, it is fine if you do not record the details.
However, as mentioned in the above point, you must record the details of all trades and analyze your data consistently (let’s say weekly or biweekly) to determine your weak areas and work upon them. See, it is not only important to make calculations every time you plan to trade. In fact, evaluating your performance and trading history consistently could also reveal significant errors well in-time that you could work upon and enhance your trading efficiency.
Having said that, HighBank team welcomes you to the niche and ensures that if you select our exchange for establishing your trading business, we will provide a free demo with lifetime customer support.