3 THINGS ALL EFFECTIVE CRYPTOCURRENCY TRADERS KNOW
Trading is a zero sum game and only disciplined traders make consistent gains. Here are three simple tricks that may increase your win ratio.
MASTER A ONE-KICK TRICK
Always have a plan before executing a trade and learn to master one effective strategy that can produce consistent results. You don’t need a million bells and whistles to make money, just one simple tactic that works.
Wing Chun Kung Fu has a very efficient yet simple principle of “one punch, one kick.” The idea is to accomplish the job as quickly as possible with very minimal effort. Who needs a flying roundhouse kick, when a straight stomp to the knee will incapacitate your opponent with one simple move.
There is no simple secret to trading. You need to find that one technique that actually works for you because if you don’t, you won’t have anything in your corner. Without a strategy, we wouldn’t have won the war against the British when we were fighting for our independence. We would lose money without a strategy in our corners in everything we do.
TRADE QUALITY AS OPPOSED TO QUANTITY
One of the most common problems with trading for newcomers is that they believe they always need to trade when they just need to trade quality products not the amount of products. Veteran traders are very particular about what they trade and when they trade that’s what makes them smart.
Success in the trading world is a 50% chance. You want the odds to be higher than that of flipping a tree right side up. It is better to wait until the odds of getting a good trade are higher than that of winning at blackjack. There is a risk in trading quality products every day that you trade. Unless you have an equation that cuts the odds in your favor then you have to wait until the trading gets good. Only make trades where the odds are in favor of your trade strategy because you will lose money if they aren’t in your strategy’s favor.
MANAGE YOUR RISKS
Even if you have the most effective trading strategy in the world, with the best market conditions, there’s no guarantee of your success. There are no absolutes when it comes to trading and nothing is ever guaranteed, ever. Trading is all about probabilities and possibilities so it’s always good to have a backup plan in case you’re wrong. Technical analysis is a way to quantify price action and frame your strategy with a series of if/then scenarios. It’s always important to look at both sides of the market.
There are two sides of the market to look at no matter what you do and you need to look at both of them. In order to make consistent gains you need look at your risk versus your reward of trading in these markets. There are some things you need to look in risk management. Assets have a volatile market and you need to make the trade from the other person’s perspective.
Here are some things you may want to consider for your risk management strategy.
- Trust only convenient companies (for exaple, I use Stepium. And not only for earning, but I also studied at their academy)
- Reduce counterparty risk, position size, set stops or hedge your position, go easy on leverage — excess leverage is risky (I can recommend Ebsglobal or similar sources)