If you start something new and are really excited about it, do you ever get this inner urge inside you? Now, imagine a novice investor crypto who’s about to make his first transaction. Would they dream of what?
Without a doubt they dream of profiting from their very first deal, preferably a big win.
In this article we are going to talk about how can you cut losses and win big while trading crypto.
Yes, beginner traders ‘ natural response is to sell winners straight away to secure profits. At the same time, not only to stop losses but also in the expectation that the coin will ultimately go up, they hold on the losers. Because it just hurts getting wrong.
Nonetheless, this is quite a common situation well-described in the saying, popular in the world of trading, “to keep winners for longer and sell losers faster”
That is, you should bear in mind that trading, and especially cryptocurrency trading, is the area where all of your basic instincts are usually counterintuitive.
So be smarter than that and focus your trading strategy on making long-term gains, rather than getting benefit from a single trade.
Approach Crypto-currency trading as you would with any career. It is a time-consuming and stressful process which could last years. They’re going to win money. But also you’re going to lose money. That is an actual fact. And this is why it’s best not to spend an amount that will affect your life, at least in the first year. Two percent of your resources is usually the correct amount.
So prepare yourself mentally to walk this journey alone, continue with the trading plan, learn about some technical resources and always have a suitable strategy for risk management.
Have a trading plan and follow it?
The reason you need a trade strategy is precisely for eliminating losers. Often you feel like you need to close a specific order or open it up. The weather is perfect, you feel lucky, the trend is on the rise.
Yet remember: There are, for good reason, no trades that are not on your schedule. This is the naive version of you telling you to stop and handle the risks before you go nuts.
Build the strategy according to your trading style and the size of your portfolio, so you know when it’s time to bail out if the trade turned sour. If you feel lucky, why bail out? Because the newspaper tells you so.
Essentially, the goal is simple: to premeditate enough room for the price to wiggle in your favor, before the trend begins to move against you, and to leave quickly when it happens. It gives you more time to try out other opportunities.
When planning your crypto trading plan, keep in mind that pre-recorded entry and exit points in your journal are important for determining your upside and downside rates. That leads us gradually to the issue of how much you’re prepared to risk.
Trading with Smart Crypto Bot
This Crypto Bot is a robust market-based automated crypto-currency trading system. It is a graphical representation of the style and parameters of your trading which makes it much easier to use. If you are interested in trading Bitcoin or any other available crypto coins on the market, you are likely to be more successful by using SmartCryptoBot.