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!
