Many individuals are taking up crypto trading as they try to take advantage of the many opportunities offered by the highly volatile market. It’s possible to make a fortune from the market; however, it doesn’t happen overnight. A lot of time and dedication is required to master crypto trading before becoming a profitable trader. Also, during the learning curve, you will blow a lot of money before you figure things out. And this can be quite frustrating, making many individuals that sought to trade in the crypto market abandon the endeavor. And this frustration can also make the individuals question if crypto trading is profitable after all. Let us go over a few steps that will turn you from a novice trader to someone profitable within a short time.
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Consider Learning Before Getting Started
Very few things, if any, can be done without prior knowledge. And even if you take the high road and decide to figure things out on the go, you will take a lot of time and waste so much money chances are you will give up before you can make any profits. It is good to get started by learning how to trade. Invest time and resources just like you do when you want to become a doctor or any other profession where you will trade your skills for income. Trading is all about mastering the right skills. Most trading platforms like PrimeXBT will provide free resources that one can use to educate themselves, including webinars and reading materials that can be found in their website with topics like crypto day trading strategies. Invest time to go through all these resources. Also, you can opt to buy a reputable course where you will find structured information that you need to turn pro fast. Your education will focus on mastering technical and fundamental analysis. The former helps you understand how to read charts, and the latter will help you examine outside factors that can influence a market.
Practice On The Demo
Most trading platforms will provide users with a demo account where they can practice their trading. After you have learned how to trade, open an account on the platform of your choice and use the demo account. Here you will analyze the pairs of your choice and test your strategies. Take anywhere from 100 to 200 trades and record the results. Anything above 66% should be seen as a success. Once you have tested your strategies and the results are consistent, now it’s time to open an actual account on the platform.
Fund your account with the minimum required amount and start trading. Anything between $100 and $250 is fine. You want to start small and grow your account using the successfully tested strategies. Since you are still new to trading, you don’t want to risk huge sums and watch as you lose it all. Another advantage of trading with small amounts is you get to trade without pressure. If the trade goes well or doesn’t, your emotions will be in check.
Trade With The Trend
In trading, the trend is your friend. Therefore, you need to always be trading with the trend. It does help to check different timeframes, establish the prevailing trend, and then take positions depending on that trend. It is always a disaster if one goes against the trend, and that is how many traders lose money in the market.
Also, have a look at Taking the Best Plans From Trading Tutorials.
Don’t Be Greedy
This comes down to your trading strategy. If it’s risking 1% for 2%, then stick to it. Sometimes it can be tempting to stay in a position if the market continues moving in your predicted direction. You need to keep adjusting your stop loss or set a trailing stop loss in such a scenario. However, what this does is that it makes you abandon your tried and tested trading strategy that has served you well. And the results will be very different.
Some trading platforms, such as PrimeXBT, have a copy trading module known as Covesting, where you get to copy the strategies of experts and enjoy their success as you learn how to trade. This is one of the quickest ways to become profitable. Also, you can seek the professional services of expert traders that can guide you on your journey. However, most of these individuals don’t come cheaply, and you have to assess if you can afford the services.