To begin with, trading is the ability to make money on the movement of the price of an asset, in short. Everything looks simple: you need to find the entry point to the deal (the correct price), then determine the exit point from the deal. We define two points – done, the profit is yours. This is the opinion of many new traders who come to the financial markets. Moreover, beginners sometimes compare trading on the market with a game – this is definitely not necessary.
As for the crypto market, things are a little different here. If a trader has been trading in traditional markets for a certain amount of time, and then came to crypto, he will have a question – what about volatility? As you know, the crypto market is famous for its high volatility, which is why inexperienced traders are simply liquidated here.
In this article, we will analyze 10 basic rules that every crypto trader must adhere to in order not to drain their entire deposit.
Stick to a trading strategy
If you decide to enter the world of trading, then the presence of one trading system, according to which you will build your workflow, is a must. You should clearly indicate how much you will withdraw per trade, at what profit you will close the trade and what loss is acceptable for you. In addition, the trading system includes information whether you are trading with the trend or against, as well as the timing of the investment. At first glance, it may seem that you can deal with these points when opening a trade. However, if there is no trading strategy, then chaos can begin in trading. Opening and closing deals when they wanted, more losses and a minimum profit – this is waiting for traders who will not use a trading strategy.
A disciplined trader is a well-fed trader. Instilling this quality in oneself will help in various aspects of life, trade will not be an exception. The discipline is closely related to the trading strategy: it is not enough just to choose the tactics according to which you will trade, it is important to adhere to it. In addition, you need to spend a certain amount of time on trading every day if it is combined with the main activity. If you want to make trading the main type of income, then you need to treat it like a job – responsibly. Imagine trading is a business you want to start from scratch. With insufficient effort and discipline, you are unlikely to succeed.
Many market participants advise you to distinguish between the money you have earned and the money that will go to trade. In this case, the profit is felt much more if all the money is in the trading account. However, you should not withdraw all the profits made. The best option would be to split it 50/50: withdraw 50% as profit, and leave 50% for trading, thereby increasing your deposit and potential profit. Important: always withdraw 50% of the profit, and do not leave it on the account, in an attempt to differentiate the funds on it. Soon the borders will be erased and you will trade, including with the money that you earned and should have withdrawn.
Do not be afraid of losses
Losses are part of the trading process, so there is nothing to worry about. It happens that at the first losses, novice traders abandon trading, fearing their increase. The situation is as follows: if in the first year of trading you were able to keep your deposit at the same level, this is a good result, because not everyone can do it. If there were losses, then you are among the traders who learn from their mistakes so as not to repeat them in the future. In the case of an increase in the deposit by 5% or more, the indicator is excellent, you need to strive to increase it.
Don’t chase super profits
We’ve all seen advertisements for successful traders. We are told about how they worked in low-paying jobs just a year ago, but that is why they learned about trading. At the same time, their lives changed, expensive cars, travel, and beautiful women became available. The truth is this: successful traders are not advertised, they don’t need it. It turns out that somewhere we are not told or deceived. Super Profits can be obtained in two cases: you have insider information and you probably know how the market will behave, or you use leverage. In the first case, no one shares insider information just like that and it is extremely difficult to get it, so it is available only to a narrow circle of people. In the second, the use of leverage will help to get not only super profit, but also super loss. If the price of the asset goes in the wrong direction, then your deposit can end very quickly.
Turn off emotions when trading
Emotions are what greatly interferes with trading. If you start trading, and the day before you quarreled with a loved one, then with a 90% chance the session will end with a loss. It so happens that a person is highly susceptible to emotions. At such moments, it is better to refrain from any important activities. In trading, this can end up as follows: your trade is at a loss, and there are no prerequisites for the price to reverse on the chart. If in the normal state the deal would have already been closed and a loss had been recorded, then on emotions you are waiting for the price to reverse. Only the price does not reverse and continues to decrease your deposit. As a result, you close the trade with a loss 3 times more than it should be. Therefore, it is better to wait out an unstable emotional state than to try to trade with it.
Stop trying to guess the lows and highs of prices
This is a favorite pastime of a novice trader – guessing the minimum and maximum prices. You don’t need to do this – it still won’t work. Traders and investors who have many years of experience will also not be able to tell you at which levels it is better to open a deal and at which to close. This is the market – anything can happen here. For example, natural disasters or a coup d’etat in a country are difficult to predict, and they have an extremely detrimental effect on financial markets.
Do not use borrowed money for trading
This is perhaps the worst idea a crypto trader can think of. We are aware of the volatility in the crypto market, where an open trade can be liquidated in a matter of seconds. Your deposit may disappear before our eyes, and the borrowed money will have to be returned. It is better to start with small amounts that you will not mind losing.
Check the information received
If a person who introduced himself as a close friend of Satoshi Nakamoto wrote to your messenger and said that soon 1 million BTC will enter the market and bring down its value, you don’t need to believe right away. Look for information in open sources: media, forums, tg-channels. If this can really happen, then the main crypto media should tell about it. Most likely, you will not find confirmation of this, and the task of the person who wrote to you is to create a market panic in order to bring down the value of a certain asset and buy it at a lower price.
Start investing and trading as early as possible
The most common idea of a novice trader or investor is that he will definitely get into this soon. Most likely, you are one of them too. You don’t have enough time, money, energy, and more. However, the sooner you start trading, the faster you will gain an understanding of the market. If you have a small deposit, then this is even better: you can learn how to trade on it, that is, when large funds appear, you will not have to incur losses.
By adhering to all of the above rules, the trader will be able to profit from the trade. And RevenueBot can help with this. The service provides the opportunity to create trading bots on the largest cryptocurrency exchanges: Binance, Bittrex, Bitfinex, Exmo and others. Creating a bot is free of charge, the service will not take commissions until the client begins to make a profit from trading the bot. With the help of deep settings of the bot, the service’s clients implement trading strategies that are problematic to experience in normal trading. We will immediately indicate: the bot does not have access to customer funds on the exchange, but trades using API keys, that is, the account will remain out of access. RevenueBot has over 28 thousand customers who earn money thanks to trading bots.
Why should I choose this service?
- Pay the commission only after making a profit.
- The bot settings open up a variety of ways to make a profit.
- Inside RevenueBot, a marketplace is implemented where customers can buy a ready-made bot so as not to bother creating their own, or sell their own if the configuration has shown efficiency. Also, the services of a mentor (an experienced customer of the service) are purchased on the marketplace, who is ready to answer the questions of newcomers. Over time, you can become a mentor yourself, getting additional profit for this.
- Regular updates of the service’s features that optimize the trading process.
- The presence of the RevenueBot referral program allows you to earn money on trading, even without resorting to trading. Attract new customers for the service and get up to 30% of the profit they receive every month (but not more than 15 USD).
This is a small list of the advantages of the service. You can continue to list the positive qualities of RevenueBot, but why do this if you can go to the official website of the service and see for yourself everything? It is highly recommended to make decisions faster, because the crypto market does not stand still, but grows at exorbitant steps. Who knows how much profit is missed by someone who does not dare to come and start trading with RevenueBot.