How to Develop A Trading Strategy

 A trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, consistency, and objectivity.

Trading Strategies are specific and general techniques you use in your trading. The cryptocurrency trading space is too large not to go there without a trading technique or strategy.

A Trading Strategy is a specific plan to achieve one or more trading goals under conditions of uncertainty caused by the volatility of the cryptocurrency space.

As we all know that the crypto trading space is very volatile and without a properly researched trading strategy, you will always be at loss and be caught in the whirlwind of the market.

How do I develop and trading strategy?

Trading strategies most times are birth from the knowledge acquired during your learning and development phase. Developing a trading strategy maybe a long or a short process depending on you, your experience and your desires. This is a phase for beginners. Here are 2 Major factors needed in developing a trading strategy

1.       Trading Knowledge:  Jumping into something or trade without a comprehensive or good knowledge is a foul play and a death trap. You need to have a full or comprehensive understanding of what you are doing and how to do it, same applies here, you need to understand how cryptocurrency works, risks associated, where to buy and sell, when to buy and sell, what to buy and sell and how to carry out your trading analysis. This knowledge will help you develop a trading strategy.

2.      Your Goals: What are your ambitions? Why did you come to the market? Are you in the market for a long and short trade? Answers to these questions will assist you in developing a trading strategy, any trades have an approach and knowledge of these questions will help you develop a trading strategy.

Like I said earlier, developing a trading strategy is key and very essential, but it is a process, you have to be steady and constant in the market to have a trading strategy, avoid copying the strategies of others because it may not go your way, I believe everyone is unique in this own way, so keep on trading, find your uniqueness, develop a strategy that suits you and then be consistent in it. See you at the Top!

How to Avoid Emotional Cryptocurrency Trading

Are you always at loss in your trade due to your emotional attachment to trade or due to the fear of losing?

Emotional trading is not always completely avoidable but can be reduced to the nearest minimum.

Emotional trading is caused due to unnecessary trading fears or doubts. It mostly occurs when you are unnecessarily scared of losing trade or losing money.

This leads you to place the wrong buy or sell trade which will eventually lead you to loss.

This situation is mainly avoided by having  Trading Strategies. Trading Strategies are proven, specific and general techniques or strategies you use in your trading that wins. These strategies are developed by your experience in the trade, and your ability to know what is right to do and what works for you. These strategies are mostly aided by your Technical and Fundamental Analysis Ability.

So, You need to develop a sound and good analytic skills and strategy that works so when there is a rise or dumb in the market you will know and be sure of how and what to trade.

Like I said earlier, Emotional trading may not be killed permanently but can be reduced to the nearest minimum. See you at the Top.

3 Things Needed to Trade Cryptocurrency

 “Cryptocurrency is a digitally created currency based on advanced mathematical algorithms that use cryptography for security and anti-counterfeiting measures.”

 Cryptocurrency cannot be physically seen or traded physically like the FIATs but digitally or electronically, It is a decentralized system which means it is not controlled by anyone. There are thousands of cryptocurrencies, but the most popular, valuable and first of all is Bitcoin(BTC) followed by Ethereum(ETH) and Ripple(XRP).

To acquire or own cryptocurrencies you need to convert your FIATSs to cryptocurrencies.
As a beginner we can’t just up into trading cryptocurrencies, 3 Things are Needed to Trade Cryptocurrency which are:

1.      Trading Skills: Jumping into something or trade without a comprehensive or good knowledge is a foul play and a death trap. You need to have a full or comprehensive understanding of what you are doing and how to do it, same applies here, you need to understand how cryptocurrency works, risks associated, where to buy and sell, when to buy and sell, what to buy and sell and how to carry out your trading analysis. In developing these trading skills most times you will need a mentor, someone you can learn directly from online or offline, or you can watch tutorials online (but this method of knowledge acquisition is not advisable, because you tend to meet different people with different strategies which may leave you confused and stressed). It is advisable to find a mentor, pay for his/her services and be ready and well-prepared to learn, because honestly, crypto trading is not easy to trade until you have the good and necessary skills. For Recommendation: I recommend you learn from Chris Ani and take his “Trade and Make Money Course”.

2.   Wallet & Exchange: Wallet is a place you keep/store your Cryptocurrency. It may be a

• Cold wallet (paper or ledger): This wallet is an offline wallet that doesn’t really need the internet to operate. And it is the safest, but it is very complicated. It can’t be hacked and it is not advisable for beginners because of its complexity.

• Hot Wallets (Mobile, Web, or Desktop): This wallet is an online-based wallet that you can access on your phone, as a website, or as software on your desktop through the internet. It is not as safe as the cold wallet, but very simple to operated, and it is advisable for beginners to use. Examples are binance, coinbase, yellowcard, blockchain, luno e.t.c.

Exchange is a platform where trading(buying and selling occur). Most time it is easy and advisable to buy and sell cryptocurrency on the same platform because most wallets have an exchange section, or you can transfer crypto from your wallets to the exchange platform.

 

3.       Trading Strategy: These are specific and general techniques you use in your trading. The crypto space is too large to go there without a trading technique or strategy. These strategies are birth from the knowledge acquired during your learning phase.

Now you are set to trade and make profit, but remember, just like every other successful business, it may take you a while to start making a profit or to get a fitting trading strategy, but with persistence, guidance from your Mentor, and determination, you will get there. See you at the Top.