Apr 19, 2019 05:15 UTC
Apr 30, 2019 at 11:47 UTC
Crypto Trading: A Tale of System vs. Emotion
In the first place, it’s relatively easy to learn the basics of trading. You require just a few days to grasp that knowledge. What is the most tricky thing is all this is the money management and trade psychology part.
Know the Assets You Are Planning to Trade
If you wish to trade cryptocurrency, you need some time to adjust the symbols you are into. Every single pair, each alternative coin may have its price action behaviours that you should learn. It would be great to do it using your demo account or minimum funds on a live account. But, be extra careful lest you should zero your account in a few moments.
Practice With No Risk
You have to test the behaviour of the tools in your own hands since there are several possible interpretations of trading signals. You have to learn by mistake, and that’s the reason a fully functional demo account is imperative.
Besides price action patterns, there are indicators you could use in your trading system. Find the signs which work for you, stick to them and excel in using them like a pro.
Have a Hold on Your Emotions
The most crucial part to progress as a crypto trader is to learn to control your emotions since they are great tools to react to the real world events.
In order to develop and improve your trading system, you have to stick to it. This is the only way whereby you will be able to tell when it’s right or wrong. Else, you will never come to know if it was the system or your emotions.
To be a successful professional trader, you should consider the time. A lot of traders spend much of their time trading than they used to spend doing their regular job. The difference between the both was that rather than a secure salary you get a payout that you are never sure of.
The Lesser, The Better
Don’t trade so many instruments at a time. The aim is to save time while eliminating silly mistakes. The aim is to make some easy money. An expert trader earns his living spending from 10 to 30 minutes on trading a day.
So, there’s no rich-quick-scheme. Discipline is an important feature you should be working on.
Clear Mind Navigation
You should have a pure mind to navigate the digital currency markets. Emotions are generally responsible for bad decisions. If you want to earn money by making a series of correct decisions in a messy environment, you should find a way to handle your emotions first.
Remember these 2 objectives –
- Build a strategy
- Execute strategy
As simple as that!