The Crypto trading marketing has created hype in the investment community. Thousands of retail traders are joining the crypto trading industry to change their life. Sadly, most of them are not making any serious profit in this profession. The Crypto trading industry is not like your traditional Forex market. The price movements are extremely volatile and it is really hard to predict the direction of the trend. The market is very sensitive in nature and it reacts vigorously to the major news release.
To become good at the crypto marketing trading profession, you need to follow some strategic steps. Today, we are going to discuss some of the critical factors which you must learn to become a professional cryptocurrency trader. Let’s get into the details.
The volatility of the market
Before you start taking trades in the crypto market, you need to get used to the volatility of the market. The novice traders might be thinking that they will be trading bitcoins or ethereum. After trading the market for a few months, the rookies become biased and start taking the trades in different cryptocurrencies.
If you intend to trade multiple cryptocurrencies at the same time, you need to spend some time and learn about the price mechanism. Instead of trading the market with real money, it would be wise to trade with the demo account. Once you trade in the demo account for a few months, you will get a basic idea about these assets.
Develop a unique strategy
As the volatility of cryptocurrencies is very high, you need to use a robust trading strategy. Check here and learn more about the professional trader’s approach as it will help you to create a professional trading method. While developing the trading strategy, use the demo account to eliminate the risk factors in the learning stage.
Some people often think demo trading accounts don’t help the trades. On the contrary, professional traders consider the demo accounts as blessings. So, open a professional demo account with Saxo and start developing your trading strategy. Try not to create a complex trading system because you need to rely on a simple trading system as it will help you to make quick decisions.
Retracement phase
The rookies often think all the cryptocurrencies are moving in favor of the uptrend. Though this is true to a certain extent you need to consider the retracement phase. In fact, some of the cryptocurrencies have already established a bearish trend in the market. If you keep on buying the asset without considering the retracement or reversal phase, you will be in big danger.
Try to identify the trend of the asset before you take any trade. While doing the data analysis in cryptocurrencies, you need to rely on the higher time frame. Never think you can find the direction of the trend with the high level of precision in the lower time frame. You may also use the Fibonacci retracement tools as they will give you a decent idea about the retracement phase.
Risk management policy
No one should trade cryptocurrencies without considering the risk factors. If you expect to make a living out of the cryptocurrency trading business, you must develop a strong risk management plan. Without having a strong risk management plan, you will never learn to execute high-quality trades in the market.
In fact, you will get emotional after losing a few trades and increase the risk factor to recover your loss. Being a new cryptocurrency trader, you should be taking less than 1% risk in each trade. By following such a conservative trading method, you will be able to protect your trading capital without having any stress.
Never think you can win all the trades. Always be prepared to deal with the losses as it will allow you to take your trades in a smart way. Focus on long-term goals and do not increase your risk exposure to increase your profit factor.
Suman(Kul Prasad) Pandit is an accomplished business professional and entrepreneur with a proven track record in corporate and start-up sectors in the UK and USA. With a focus on sustainable business practices and business education, Suman is highly regarded for his innovative problem-solving and commitment to excellence. His expertise and dedication make him a valuable asset for businesses seeking growth and success.