New to trading? Start off by reading this list of tips and form some good habits before starting your first trade. Trading requires plenty of focus and attention to be successful.
Check this list:
- Do your own research
Following influencers, Twitter traders or Telegram group signals is a quick way to guide yourself to make better trades. However, this may not be the most reliable way to gather information you need to trade because at the end of the day when things go south, you won’t be able to accurately pinpoint what went wrong. Therefore, it is important to make an informed decision through your own research as you will grow as a trader by doing so. This means learning how to independently read market trends and patterns and coming up with your own anaylsis, on top of keeping up to date on the latest updates on investments you are involved in. It is also especially important to “believe” in your trade if you’re looking long-term so you will be emotionally ready to stick it out through the bad days.
- Always have an exit plan
Today you may have made a good entry trade but your next move is the most important one as it determines profit or loss. Most beginners do not have an exit plan and tend to become greedy when prices go up. In most cases, they end up holding the tokens longer than they should, losing their profits in the process. Always have a profit and loss exit plan regardless for long-term or short-term trades, minimising your loss and taking your profits.
- Stop looking for another Bitcoin
At its peak, Bitcoin prices rose over 20x it’s price. Although that is an incredible gain, not every cryptocurrency can or will replicate such a feat.
- Never put all your money on a single trade
An extremely common mistake beginners make is to put all their money into a single trade. While it is possible that returns will be handsome if things go well, but the opposite holds true as well – it can go equally bad. What you should do is to buy in at a percentage of your funds (50% — 60%) and wait to see if your entry works. Using this method allows you to reduce the risk you’re taking and also, to dollar average when the token price takes a dip after your trade. Although this method reduces your potential profits, it secures your position and prevents you from losing it all if the trade goes south.
Keeping up with the latest crypto news
In order to be a successful trader, it is essential to be up-to-date on the latest crypto news, recent and upcoming developments. Cryptocurrency is still heavily influenced by speculation or crypto news, responding closely to both positive and negative news not just in the crypto and blockchain industry, but also external political and socio-economic news as well. Having the latest and most relevant knowledge is an irreplaceable asset for a trader.