I have been trading crypto full time for a few years now and I’m going to share some tips I have to become more profitable. Trading isn’t easy and isn’t for everyone. Most people fail at becoming profitable and end up losing everything. I think this could also be because it is easy to start doing it so a lot of inexperienced people jump into it and exit it after 2 weeks of losing money. It is definitely possible to get profitable but it takes some time and learning. So let’s get started with the tips I have.
It can help a lot to create a proper trading plan. Plan out how much you want to risk per trade, what you are going to trade. Plan out your entry and exit strategy and stick with this plan. This helps to stop taking random trades based on your emotions if you have the discipline to stick with your plan.
Know when to stop
A big mistake I struggled with a lot is overtrading. I could make for example 200$ in a day and then lose it because I still wanted more and just end up losing the profit I already had. Or the other way around I lost 100$ in a day and started risking more to make it back and end up losing even more. A great tip I have here is to set some rules for yourself. How much do you want to lose in a day before quitting for the day and how much do you want to earn before quitting.
Keeping a trading journal
Keep track of all the trades you take in a journal and write down your entry point, why you entered that trade, your SL and TP, and some notes about it after the trade is done, for example, if it was a bad trade what went wrong and how you could avoid it next time. This helped me massively to actually see what I was doing wrong and how I could improve my strategy to filter out the bad trades.
Respect your TP and SL
If the price is dropping don’t constantly move your SL because you think the price is going to bounce back up just accept the loss. Every time I moved my SL down I just made the loss bigger. Same for the TP target the price may pump higher but if it dumps before taking profit your winning trade can end up be a losing one. A trailing SL can also help to secure profits on the way up before dumping back down in a loss.
Wait for the right entry according to your strategy taking random trades and chasing pumps because you are inpatient will most cases be the downfall of your trading. Trading isn’t a get rich quick it is a long journey that will take a lot of time and effort to be good at.
If you are just starting out learning to trade go with paper trading first. find something that works for you create your plan and have fun learning things about trading. Learn to control your emotions and see if it is actually something you are capable of doing and really want to do. If you are just there to get rich quickly you won’t make it. If you do it because you enjoy doing it and want to be good at it you have a way higher chance of succeeding
Thanks for reading this article. I hope you got some value out of it. Be sure to follow me for more articles like this. Have a great rest of your day and good luck on your trading adventure.