It can be really hard to find trading tips that actually works. The majority of tips that you can find online are really just boring click baits. We are going to share our 8 best trading tips with you today. These tips are easy to follow and works as long as you actually stick with them.
- Correct stop loss.
This may be a tip that you have read before but still a tip that many traders still struggle with. You may ask yourself the question “What is the correct stop loss for crypto trading?”. We will provide you with the correct answer.
There are two key facts that you need to know before entering your stop loss.
- What is the average volatility of the current coin?
- How much money am I willing to lose on any one trade?
You can easy answer the question on how much you should risk per trade by taking 1% – 2% of your total trading capital. How to understand what the average volatility of the cryptocurrency that you currently are trading you can use an Average True Range. This tool will help you analyse the average range of the market.
- Use your setups.
This may be the most important tips in our list. When analysing and really looking at your own setups you can start to see patterns. You will learn how the coins act and which kinds of patterns they create.
After a while you will get great on discovering patterns in the coins and therefore being able to make some great trades.
- Ignore the news.
The main goal for newspapers are to create content that excites their readers. The content does not always need to be truth. If you are reading an article about cryptocurrency trading you should never really trust what are being said.
When you see an article that is about cryptocurrency, the market or Bitcoin – don’t read it. You should only take tip and listen to people that truly understands the market in the correct way.
- Trade what’s in front of you.
Step one for how to make money out of crypto trading is to understand how to read a crypto chart.
The crypto chart (when being read right) will start telling a story, this story will tell you what’s going on and if there is some negativity or positivity in the market. It can take years before traders actually starts to listen to the market and start to trade with the market.
Traders often get sloppy when there are few trading opportunities on the market. Often in this stage traders starts listening to friends or the media. To read more visit this site.
Be patient. If there are no trade today, just wait and only trade what you see.
- Don´t listen to others.
A trend that I often see is that traders takes advice from other traders on how to make money. If everyone jumped from a bridge – would you?
If you have a goal to be a serious crypto day trader you need to have the knowledge to listen to your guts. When listening to other traders you get a lot of information but no idea on how to use it.
Only listen to your own ideas and your own guts.
- Write everything down.
The trading business contains a lot of learn by doing. You will never understand the best trading tips until you have tried it. This is why it is so important for you to write everything down.
You often need to see it to truly understand it. Write down everything that happens on the market, what price patterns you see and the behaviour you need to see. In this way, you will recognize the setups much faster and earlier.
- Listen to your mistakes.
If you don´t analyse the mistakes you make you are probably going to make the same mistakes again. In the crypto trading business, there are many mistakes to be made.
- Take a wild chance.
- Trade too often.
- Trade too big.
- Trade only to make money.
- Listen to a friend’s advice.
When making a mistake – analyse it and try to learn something from it.
- Leave the ego at home.
The trading business can sometimes feel really lonely. A lot of traders writes about the huge amount of money they make – but let me tell you, the most is just fake.
The best tip on how to really succeed in the trading business you need to truly focus on yourself. Leave the ego at home and let this be a slow process that takes times.