If you regularly follow the cryptocurrency market, you will see that it is always volatile. Volatility does not only take place between the previous day’s trading session and the next day, even within the day there are unexpected ups and downs. Therefore, if investors see the market going down and panic sell, they will suffer huge losses. Meanwhile, some other crypto traders know how to seize the opportunity to buy and can profit in just a few hours. That means, to be able to profit from trading coins, traders must have an understanding and timely grasp of the market trend to make accurate decisions.
If you are a newbie in trading, immediately refer to these tips for top ten bloody experiences when trading coin via below article to avoid mistakes and get profit from this relatively new investment!
Choosing a Reputable Exchange
There are quite a few crypto exchanges established and developed to meet the growing needs of the market. But to ensure safety, traders must choose a large exchange with headquarters or a large representative office of a reputable management company. Because major crypto trading and investment exchanges always have many measures to ensure the safety of their trading systems and provide tight risk insurance packages for investors to feel more secure when participating in coin trading.
Researching and Selecting Information
Trade coin is an investment and trading activity in the short term. Therefore, it requires investors to be extremely sensitive and quickly grasp the information on the market to make a profit. However, not all information is accurate, so investors need to know how to select official information channels to make the best decision. In addition, when noticing rumors that attract attention or guide investors in the market, Traders need to check and analyze carefully before making a decision.
Track Major Events in the World
In fact, major economic and political events in the world often have a strong impact on the crypto market. For example, in March 2020, the outbreak of COVID-19 had a heavy impact on the world economy in general and the crypto market in particular. Find a companion Having a companion will help you in sharing information and learning experiences. According to experienced investors, when they first invest in trading coins, they often join groups and are willing to pay fees to be a member of that group. However, those with experience also advise you to be wary of free groups because it is most likely that the community was created for the purpose of navigating fledgling investors.
Not always trading coins is profitable, sometimes you will lose. The immediate stop loss will help you avoid heavy losses. In particular, from those mistakes you need to evaluate and learn from them so as not to make them next time.
Avoid FOMO and Diversify Investment Portfolio
Besides trading coins, players should also diversify their profits by allocating capital into different types of investments. In particular, holding a long-term amount of coins is considered a fairly safe strategy. Experienced traders often never put all their eggs in one basket, they will divide their capital into many different coins. In addition, FOMO is a syndrome that Traders often suffer from. With the fear of losing investment opportunities to profit, traders often rush to make irrational decisions.
Not being greedy and investing blindly
This is also one of the important notes for investors who trade new coins. When the currency you own is growing well, you can sell to take profit. Taking profits is never wrong. But a lot of people didn’t do that, they wanted more profits so they waited for the “new top” and lost all their profits because the market price reversed. New investors are often prone to misinformation in the market leading to blind investment. When a Trader noticed a coin that was on the rise and did not hesitate to buy in a large amount without understanding carefully. However, soon it fell and caused them heavy damage.
Pay Attention to Every Change Bitcoin
BTC is the leading and dominating cryptocurrency in the crypto market. Therefore, any change in the price of Bitcoin will cause significant impacts on other cryptocurrencies. Simply, if the price of Bitcoin is on the rise, the price of other currencies may fall because investors are selling to profit from BTC. However, in some cases, the price of BTC falls, but the price of other coins also goes down because investors are worried and want to own cash or gold to ensure safety. Therefore, Traders need to always pay attention to any fluctuations of Bitcoin in the market.
Investing in a Loss Range
The crypto market is always volatile. Therefore, according to experienced investors, to minimize losses they only invest about 1% of their total assets. In case there is a loss, it will also be within their tolerance limit. This helps them to have a completely comfortable position when trading coins, because less pressure will make players make more accurate decisions
Have a Right Mindset
When starting any job, you need to have the right view of it, don’t be too dreamy and don’t be too afraid. To be able to become a Trader, you will have to face many new factors. Trading in the financial markets is never a simple thing, it comes with loads of risks, some statistics show that the number of traders who fail in the financial market accounts for 85 to 95%, that is success rate is not high.
Some right thoughts of a professional Trader:
- Trading in the financial markets is not a way to make money quickly.
- There is no concept of 100% winning in the financial markets.
- In order to have a successful trade, a Trader must have a strict plan from the beginning, and follow it completely.
- It takes patience to get profit when trading.
Having an Effective Trading System
When trading on the financial markets, any Trader must have an efficient, time-proven trading system. This system helps traders identify important elements of a trading plan including:
- Determining market trends How to specify specific entry points to the market.
- Specify the stop of the order to avoid loss.
- Specify the closing point of the order to profit.
- Limiting the impact of emotions on transactions and investments are objective.
There is a strict rule of capital management
For any investment, the most important issue is capital management. Strict capital protection and management is a prerequisite for successful investment. Especially, when you are a Trader, you need to clearly define some points about capital management after the volume of a trading order. Acceptable level of risk for a trade, per day, per month, per year.
Trading is a long-distance race, not a short-term ride. Therefore, to be able to become a professional trader you have to go through a long and hard training process, to be able to win yourself, to create yourself a professional to bring success. The above factors will help you to have a solid foundation on the way to becoming a professional trader in the future. Remember money is just a tool to build, can be successful or not, this depends on your ability.