Tips for trading on the cryptocurrency exchange market for beginners
This article is for people like me, beginners, the fighting hamsters who want to start trading on the cryptocurrency exchange market, but don’t know where to start or simply afraid (and rightly so).
About the nuances of different trading strategies, stop loss, market the glasses will be a separate article. And here I want to share important tips, is aimed more at behavior and attitude to the trade cryptogateway. These recommendations I gathered, having studied a lot of resources, some of these recommendations are my personal conclusions, and part owned by experienced traders such as Chris Dunn.
First things first. If you want to easy earn a lot of money and immediately exit from the market, toss this idea. Phase of easy money has passed, and we can hardly expect its repetition in the near future. The market has almost found his balance and double-triple your startup capital is only possible in the long term.
According to statistics, only 5% of traders multiply their assets from year to year, the remaining 95% closed position at zero or a loss. Do you need it? To live in constant tension and flinch at any news that can bring down the cost of your investment.
Trading is a profession and lifestyle. To learn to understand the signals of the market, read the graphs and correctly identify the trends will require plenty of time. Will have to read the professional literature, monitor news and stock quotes. Will have much re-learning, including working on your psyche and stress.
I hope this bucket of cold water cooled your ardor, and you will continue to read, knowing all future risks.
Starting the activity of the trader, must learn not to fear the collapses of the market, price adjustments, and possible loss of all your investment. Fear, greed and doubt – the three satellites of any trader. Learn to live with them – a chance to be successful.
Do not trust anyone. Neither the experts who offer “real” scheme of quick money, no “pros” about their unprecedented earnings last week.
Do not follow blindly the advice of your chat exchanges, forums and different messengers. Including these recommendations. Divide everything by two! Expose all doubt. Every decision must be made by you without outside influence. To think independently is an important step to success.
Trading is a kind of game. No wonder market participants are sometimes called players. So, play like in casino, only with money that can afford to lose. It is IMPOSSIBLE for it to borrow, mortgage the house or sell things. In General, all that threatens the well-being of you and your family should be strictly taboo. Here is another thing, the attachment latest money deprives composure and inevitably leads to bad decisions and losses.
Competent trading is the correct understanding of the current trends. Buy on low, sell on high – it is an axiom that doesn’t always work. Peak could easily be missed.
No need to be sorry about the loss of profits. Consider what you earned.
The exchange rate and the stock and on the cryptocurrency market can manage the so-called manipulators (this the big players with great potential), which for twenty minutes unable to turn the trend in the right way. Don’t try to beat them. A dead room. Determine a acceptable value, and fix it your profit.
The best universal strategy does not exist. It’s all in the nuances and signals of the market. One trader can not control the entire market. His sphere of responsibility – points of entry, exit, and trade volume.
Rule of any market – early investment. If, in your opinion, the project has the potential, it is necessary to invest! Remember that invest only the amount you can afford to lose.
The trader should always be a plan of actionwhich he must follow, despite the surrounding hype. It is important to determine a line from which you access the cache. Do not be greedy. An extra hour of hopes for higher profits can make you lose everything!
Distribute investments. You can not only bet on one horse. Choose 3-4 of the coin from the top ten, 2-3 of 2-3 of the second and third. In this case, barring total collapse of the market, possible losses overlap profits on other positions.
Write it all down. Do not rely on memory. Especially in active trading. Take advantage of special services or the old fashioned way, get a special notebook in the box.
Follow the news and evaluate their impact on the prices. Some news can cause short-term pullback or the rise and this may well rise. Do not trade before important global news – the market’s reaction is unpredictable.
Trade on different exchanges. This will reduce the risk for possible hacking or technical suspension of trading on one exchange. In addition, you can use the difference in rates in different markets for additional income.
General advice is to buy the currency should be on the second wave of the fall. But first it is necessary to examine the previous trends and to assess the General situation on the market.
The rapid growth always follows a collapse. It is important to remember not to feed unnecessary illusions and not to be led by greed.
Don’t be afraid to make mistakes. This is normal. Think of them as experience for future transactions.
Sometimes, the best strategy is inaction. It is difficult, but occasionally necessary.
You should not rely on long-term investments in new coins or assets with low trading volume and capitalization. They are good for short – term trading. But we must remember that these currencies are easy to manipulate.
Entering the cryptocurrency market, it is necessary to realize that 90% of them will eventually disappear.
Always evaluate conditions in the market. Sometimes the right decision will be the suspension of trading and profit taking.
Do not leave else to trade for you. Are leading the process yourself or not participate at all.
Do not expect that every day will be closed with a plus. There will be negative periods. And it is also in order. Patience and again patience.
Grab a big score on one deal, and you can achieve the same result for the year. To make the most of each transaction impossible.
Before entering the real market, open a demo account on the stock exchange. On cryptomeria such services yet is rarely offered. But there’s a great trader simulator Cryptolot Active. Try it without any risk to increase the initial capital. Treat it with the utmost seriousness.
Learn to manage your money and investments. If the simulator will not go, do not expect that in “combat” conditions will be different and succeed.
I repeat, do not invest the latest, always remember about the risks and make your own decisions.
And the last one. Earning huge, by your standards, amount of money, take a vacation for 3 weeks and treat yourself to idleness.