Source: https://cryptocoinmastery.com/cryptocurrency-risk-management/
CryptoCurrency Risk Management
Why are some traders more successful than other traders? I personally believe that it comes down to discipline. Too many traders are looking to “get rich quick”. They focus on capturing massive gains when they do not even understand the market. I will be the first to admit that my old trading techniques were not good. I would chase after massive gains because I felt like I was missing out.
I have developed a few tips that are going to help you become a more successful trader. Most of these tips come from the understanding of how a market works. In order to sell the coins that you own, there has to be a buyer interested to take them from you. Too many traders are buying coins because of “hype” and “how cheap they are”. I have found that successful trading can be done in any market. I will trade extremely “expensive” coins but all that matters is the percent return that I receive from the trades.
How Can You Make Right Decision?
1. Do Your Own Research!
You should understand the company before you invest in the company. Go to the company’s website and read their white paper. It should not be a guessing game. Invest in companies that you believe in. It will help take emotions out of your trading.
You should understand the company before you invest in the company. Go to the company’s website and read their white paper. It should not be a guessing game. Invest in companies that you believe in. It will help take emotions out of your trading.
2. Do Not Trade Low Volume Coins!
I personally do not trade coins with less than a 100 BTC daily trading volume. Liquidity is very important when making trades. It is too easy to get stuck in coins that have a low daily trading volume. Never trade more than 1% of the daily trading volume.
I personally do not trade coins with less than a 100 BTC daily trading volume. Liquidity is very important when making trades. It is too easy to get stuck in coins that have a low daily trading volume. Never trade more than 1% of the daily trading volume.
3. Be Confident!
Confidence is key when trading. If you get emotional when you trade, you are most likely trading more than you are willing to lose. Be focused, but not emotional.
Confidence is key when trading. If you get emotional when you trade, you are most likely trading more than you are willing to lose. Be focused, but not emotional.
No comments:
Post a Comment