I see a lot of new people come into trading and one of the most common questions: “What advice would you give to novice traders?”
I want to share my experience with you. Crypto is a nascent market, I remember a time fairly recently when most people didn’t know anything about technical analysis while trading Bitcoin . But in recent times things have changed significantly, and now there are tons of professional traders and trading algorithms that operate on small trading timeframes.
The past couple of years have shown us that not everyone can make money in this market, and I want to share with you some advice as well as my observations:
1. Trading on small timeframes means that you’re attempting to compete with bots and trading algos, and data shows that the algorithm usually wins. Trade on large timeframes and use small timeframes purely to calculate best points to enter and exit.
2. Opening lots of trades is also a common mistake because of comissions and the compulsive urge to begin gambling rather than trading.
3. Having a trading diary is very important, as well as analyzing your mistakes every day, week, and month – this is a good way to control and expand your abilities.
4. Do not trade on credit money or borrowed money
5. Lack of trading strategy – If your strategy can be described as one of an “intuitive trader” you’re highly likely to lose your money.
6. Capital and risk management is very important!!!
7. Trading with leverage: more leverage = more comissions, and you also increase your risks. On the otherhand, you can also boost your profitability significantly.
In conclusion, trading is no simple task!
Wishing everyone a profitable trading sessions.