An increasing number of people are choosing the profession of a cryptotrader. In 2023, this figure has already exceeded 100 million. But only 10-15% of them can be called successful cryptotraders. Who is included in this circle of the elite? It's simple: these are those who carry out consistently profitable transactions.
First of all, as in any other profession, you need to “know the materiel”. Here we are talking about the nuances and subtleties of stock trading, as well as the ability to learn from your own or others' mistakes. After all, a trader pays for miscalculations with the most valuable: nerve cells and assets. In this article, we will go from the opposite, and tell you what mistakes you should avoid in order to become a successful cryptotrader.
Having a trading system is the foundation of success in trading. Without a system of actions, making transactions will resemble a game of roulette, where the exchange or more experienced traders often win. Each trader must develop and adhere to a certain plan and rules during: market growth, stability and falling prices. This includes determining the style of trading, the level of automation, the regulations. And also the duration of transactions, points of entry and exit from positions, strategies for fixing profits or losses, and other nuances.
Each trader creates his own set of strategies and tactics adapted to different scenarios in the cryptocurrency market. Intense fluctuations and changes in the market should not lead a trader astray. He is ready to change his strategy and continue to operate successfully in any circumstances. Each strategy may include specific technical analysis tools, indicators, fundamental analysis, as well as risk and capital management strategies. Depending on the trading style chosen, such as scalping, intraday, swing trading, and others, separate trading strategies are usually applied that take into account different phases of market cycles, whether bull, bear or flat-market.
Maintaining trading discipline is the result of following the rules of the trading system. By constantly following the trading plan and avoiding impulsive decisions, the trader gradually increases his portfolio. However, if a trader constantly changes his trading style, gives in to the temptation to open trades based on short-term chart signals, ignores the current trend and other factors, this will only lead to losses and frustration.
In the real world, relying only on technical analysis and ignoring fundamental analysis can result in significant losses. Fundamental analysis provides information about the current state of various trading platforms, crypto project teams and assets. It is important not to ignore the warning signs about the possible bankruptcy of exchanges (for example, FTX), the opening of criminal cases against the founders of projects and coins (like Justin Sun and Tron), as well as attempts to hack protocols, DEX exchanges and smart contracts. Only in this way can you save your capital and get rid of problem assets in a timely manner, when they still have some value.
Greed and fear are the most dangerous enemies for a crypto trader. It is important to remember that you should buy on drawdowns, and sell when you reach the take-profit level set on the basis of technical analysis. Agreements entered into under the influence of emotions at the time of significant price fluctuations in the market or manipulation never lead to positive results.
Well, young crypto trader, we have told you the basics of competent entry into the world of crypto exchanges! We hope you have become at least a little clearer on how to become a successful cryptotrader. And if you suddenly run out of stables, you can always exchange more at WTC exchange in Batumi, Dubai or any other city of your choice.
