How can we avoid making costly mistakes? How can we ensure that we always stay on the green side?
First of all, you should know that profitable trading requires a lot of attention. We especially recommend that beginners to cryptocurrency trading read our guide carefully.
11 steps to follow in cryptocurrency trading
Let’s get started!
1. Determine the time interval during which you will trade.
Cryptocurrency exchanges can be traded 24/7, but that doesn’t mean we should be constantly chasing new positions.
2. A detailed plan should be drawn up and the plan should be adhered to under all circumstances.
Every trader emphasizes mental discipline. The transaction can be entered after the necessary research is done about the crypto currency to be processed. The first question to ask before entering into the transaction is “What is the risk/reward profile of what I am doing? Profit and loss planning needs to be done. When you “limit” your potential losses and gains, you are less likely to act impulsively on the emotion. While your stop-limit rate is in trade, it can suffer huge losses if it falls off schedule and rebounds and goes downwards while waiting for it to pick up momentum. However, if the trade stops, if the price falls or starts to recover, the trade can be entered from safe zones. In addition, you should know the cryptocurrencies you will invest in very well and do not forget to take action according to the situation.
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3. The excessive desire to win should be curbed.
Thoughts such as if I had entered the process from here and gone out of there, I would have made so much profit always cause psychological wear. Thoughts like this don’t do profit, but they can lead to greed.
4. Treat losses as a learning opportunity.
The basic rule of trading is that it is possible to lose as well as win, but when you learn from the mistakes made, you can return as profit rather than loss. If you really made a wrong decision, then try to find out what led you to that wrong decision. Was the logic sound? Were your assumptions sound? Was there a rush to enter the transaction? The situation can be evaluated with questions such as whether my plan was acted in accordance with or whether it was acted in a hurry.
5. Practice physical exercise.
Spending a long time in front of a screen will have a bad effect on your health. Even if there are no suitable conditions for sports, relaxing and stress-relieving activities should be done so that mental and mental health can be protected.
6. Treat it like work and divide the time.
Especially in the early days of crypto trading, it’s natural to obsess over prices, positions, and probabilities throughout the day. But it should also be possible to minimize it and walk away.
7. Don’t put too much financial pressure on trading.
When your livelihood depends on the results of your transactions, psychological factors are also involved in trading. It becomes more difficult to think logically. It’s easy to get swallowed up by anxiety, which can push you to pursue losses or gains. These situations increase the risks and make planned progress difficult.
8. You have to keep your emotions in check.
It is extremely important to have emotional control when trading. The best way to improve emotional control is through planning and the process of sticking to the plan and repeating it.
When you start trading, when things are going well, it’s normal to feel like a genius, but when things start to go badly, it becomes difficult to learn the record because the stress will increase and the control mechanism will weaken. That’s why emotions should be kept under control as much as possible.
9. There should be a break.
Often get away from the phone, laptop, schedules. This is necessary for your mental and mental health. After all, there is a whole world outside of crypto.
10. Time management should be well planned.
Time management should be a priority in everything you do. It’s not just about winning. The main thing is how much can be earned in how much time and therefore it is necessary to use the time effectively and proceed in a planned manner.
11. Know that stress and anxiety will never really go away when trading cryptocurrency.
Even the most experienced, balanced traders say that from time to time they can succumb to the urge for forced price control. You should value your time more than money. In other words, if you spend 24/7 looking at crypto charts and not doing anything in your life, your mental and mental health may be worn out. If your money doesn’t buy you more time, you should stop and think about what you did wrong and act accordingly.