How to Trade Bitcoin in 2018
Jan 22, 2018 Posted / 7352 Views
Bitcoin trading is like a dream job reserved just of the fortunate few who trade bitcoin from the comfort of their living rooms at their own set working time. However the harsh reality about Bitcoin trading is that majority of new entrants into this jobsite consistently loose loose money and quit trading within a year.
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The intrinsic unpredictability of the Bitcoin markets coupled with natural human weaknesses and errors makes Bitcoin trading difficult. Bitcoin trading requires the highest degree of emotional control which is hard to develop in very many people. Trading can be best compared to gambling where traders can easily lose all their capital if not well managed.
To reap any significant profits out of Bitcoin trading or any other monetary commodity trading for that reason, effective control of fear and greed is of paramount importance. At times an opportunity to make profits presents itself but fear of losing money can prevent the trader from going for the available opportunity. The major causes of fear and greed factors come from major prince swings of a dramatic news.
Market chatters can be used to provide insights into the markets updates though following this chatters too closely could infect the trader with the market hysteria. It pays off to stay as objective as you can when taking the markets emotional reactions.
The most important aspect of any trading is the preservation of capital. Before you decide to start trading Bitcoin get a portion of your finance you can do without with and plan well of how you are going to trade it. It is wise to put a small percentage (5% max )of your capital at a time so you can remain trading and improving your skills.
People without previous trading experience should not use more that 1% of their capital on a single trade. If trading is successful the size of each trade steadily grows as your accounts expands. Incase of any losses it is possible to keep it to the minimum allowing the trader adjust his trading plan and remain in business.
Jumping into a trade before setting out a clear closing strategy is a good way to make unending losses. It is wise to carefully determine the price at which you would cut your losses and take whatsoever remains of the trade incase the market goes contrary to your expectations.
This strategy is called a stop-loss and it’s very critical to market survival while trading. It is wise to limit your losses below 25% of your position size. A stop-loss can be placed on the other side of a level at which price has reversed previously, the more stop-losses you include the lower your chances of making losses become.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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