This is the first installment of my new series that will be going over tips that will help you be a more successful trader of cryptocurrencies. There are all different kinds of options when it comes to trading strategies, each of which comes with its own version of experts who are happy to declare their successes and have you view them as your trading guru.
I am not that person.
I am not a day trader, let alone an expert, but I am going back to my roots in this channel. By that I mean as I am learning about these concepts I will be passing along what I’ve discovered to you.
To begin this series I think it’s appropriate to cover some basic concepts that will serve you well to remember when you are considering getting into trading cryptocurrencies, whether you want to be a day trader, a swing trader, or even a long time investor.
First, I will always strongly recommend is to invest in cryptocurrencies that you understand.
Seek out information like what the dev team is like, how long they’ve been working towards building their platform or product, other projects they’ve been a part of, and how often they make updates and improvements to the project. A lot of information can be found on their GitHub account. If you want to know how to analyze a project’s GitHub account, check out this link.
Knowing what you are investing in or trading, and keeping up to date on the project’s status is important because this will help you number one be less inclined to panic sell if the price takes a dip.
And number two, it will help you better be able to understand future price movements, for example how a new update or problem will affect the price.
Next, its very important to be aware of the general trend in the cryptocurrency markets.
Generally these markets are either in a bear market, which is when the prices are trending down, or a bull market, which is when prices are trending up.
As a trader it is much more difficult to be profitable in a bear market unless you are a seasoned trader and know the appropriate moves to make like how to short a coin for example. In a bull market it is easier to make a profit because prices are increasing, however it’s also important to be weary of who you take advice from in a bull market. Those who can be and have been successful in a bear market are most likely seasoned traders with valuable information, if they are generous enough to share their trade secrets.
Lastly, it’s very important to have a plan set in place.
By this I mean you need to have goals set for yourself profitability wise and stick to them.
Traders who become greedy tend to take bigger risks and are more likely to lose sight of their goals and incur more losses.
Never invest money that you cannot afford to lose. There are countless tragic stories of people who made rash decisions to take out second mortgages on their homes or rack up credit card debt they cannot otherwise repay all in the hopes of making fast easy money. There are thousands of people who participate in these cryptocurrency markets, all of which have very different experiences even though the prices are the same for each person. If you panic sell, it’s most likely because you don’t know much about the coin you are holding and you have too much at stake to make a rational decision. If you find yourself buying a coin because others are promoting the crap out of it, and you don’t actually know anything about it, chances are you’re getting in too late, and you’ll be stuck holding a coin hoping for it to pump again, which might take a very long time, or it might never happen again.
I know that all of this might seem like common sense, but when the pressure is on and you’re dealing with money that you care about, your judgment can get clouded with doubt and panic.
That is not the mindset you should be in when making decisions about your investments.
Instead, take a deep breath and remember these tips, over time you will develop the kind of experience and knowledge that will serve you well in the long term. If you make mistakes, don’t forget them or run from them, analyze what happened and learn from them so they don’t happen again and you can begin to be more successful in the future.
In subsequent videos in this series I will be going over much more specific trading strategies and concepts for day traders, swing traders and even those who are interested in trading bots too. If there is anything you would like to learn more about, please feel free to leave them in the comments down below. Please don’t ask to go over specific coins, that is not what I will be focusing on in this specific series.