trading bitcoin: choosing and risk management
hai steemian.
good day today
start treding for us beginners is so hard, because experience or flying hours are still limited to the backup players in football terms.
scurce
One aspect that is so desperate to become a successful trader in any market is to know the basics of sticking to a strategy during times of economic turmoil. Many novice traders can choose strategies that can work theoretically not scientifically, but they end up making the wrong decision when they begin to see a massive change in price. This is a serious problem in the bitcoin market due to the volatility of this new currency.
# Daily Trade vs. Long Term / Holding Assets
The first thing you need to decide when going to trade in the bitcoin market is your attitude at the time of investing. Do you want to make money quickly? Do you think that bitcoin is the future and holding it in the long run is the best option? By understanding the time period of your investment, you can find out which trading strategy is more suitable for your If you want to play long games, then you need to plan your bitcoin purchases in the right way. Although bitcoin prices may change rapidly in just one day, it is important to remember that your strategy is not to trade needs. If you're someone who thinks bitcoin could be worth millions of dollars someday, then you'll probably stick with long-term trading strategies. If you only intend to profit from the bitcoin price movement, it is perfect if you use short-term trading strategies.
**Long Game**
If you want to play long games, then you need to plan your bitcoin purchases in the right way. Although bitcoin prices may change rapidly in just one day, it is important to remember that your strategy is not to trade or trade cryptocurrencies daily. Just because you see the price drop does not mean that you should automatically place a new buy order on the exchange exchange. If you are going to place a bitcoin purchase for long-term speculation, then you should place your order in regular intervals.
For example, let's say you get a salary from your work every two weeks. To plan your long-term bitcoin game on a speculative strategy, you will only take a small percentage of your salary every two weeks and use it to buy Bitcoin in exchange exchanges. You can even divide that amount into half and make your purchase every week instead of every two weeks. The point of this trading strategy is twofold. First, you take price fluctuations from the equation (for the most part). In other words, you might avoid scenarios where you buy 20 Bitcoin at the peak price and then have no cash left to buy bitcoin when the price drops sharply / dip. Second, this strategy completely removes the greed and emotion of the equation. As long as you stick to your original plan and purchase Bitcoin at the same time on the same day each week, you will not have to worry about getting caught in a price or sales bubble when the price drops sharply. This will reduce the possibility of purchasing bitcoins at high prices and selling them at low prices.
**Daily Trading Strategy** If you are only aiming for a quick profit from the Bitcoin price movement in the short term, then you will see some strategies that are shared on new posts as the basics of bitcoin trading. Tracking indicators such as support, resistance, and moving averages can provide a good idea to make a purchase or sale. Combining multiple indicators into your own trading strategy will usually be the best recipe for success.
If you choose a different indicator to track the bitcoin price every day, then you should make sure to re-test your strategy before you involve real money into your game. A trial is a way to see how a particular trading strategy will have the same fate in the past. While past trends may not necessarily match future price movement indicators, these backrests can give you a good idea whether or not this collection of price indicators could be able to predict price movements in the past.
# Risk management
Once you have chosen your trading strategy, it's time to think about how you will manage your risk. The good news is that having a trading strategy is a good step in the right direction in managing risk. In order to properly manage risks associated with trading on the bitcoin market, it is important to plan your trade. This is where your trading strategy goes into the game. Therefore, trading planning is the initial preparation of a battle. In addition to trading planning, you also have to "trade / trade according to your plan."
If you trade Bitcoin for a long period of time, then you just have to think about how much your assets will be put into bitcoin. In other words, the risk management process only comes into the right money management tactics. It's important to remember that bitcoin is still a high-risk, long-term speculation, and you should place a small amount of your entire asset portfolio into digital currency. In many situations, the best way to manage your risk is to make sure that you do not put your children's savings or tuition into bitcoin investments. Remember, you only need speculation regarding the amount of money you use and must be ready to lose your money.