Becoming a Trader: The First Steps
There are many personal reasons as to why people get into trading. However, the primary motivation behind these dreams and ambitions is the profits that come with crypto trading. Nevertheless, many new traders find it hard to proceed from their initial trading because of one thing; they don’t have a trading strategy.[/vc_column_text][vc_separator][vc_empty_space][vc_video link=”https://youtu.be/90d3MaJyGE4″ align=”center”][vc_separator][vc_empty_space][vc_column_text]
The Trading Strategy.
A trading strategy determines how you are going to execute your trading orders. It decides when you are going to enter a trade and when you are going to pull out. It also determines what time frames you are going to employ in your trades.
There are numerous trading strategies on the internet. A quick search on youtube will present you with dozens of strategies.
The Eternal Mistake
A prudent beginner will backtest the strategy on a dummy account. A common mistake with most beginners is that they ditch a strategy after the first mistrial. This usually marks the beginning of a series of different trials, which lead to frustrations and loses. We can refer to this as the eternal mistake made by new crypto traders.
Our experts advise that it is wise to get a single strategy and build on it. If a trial leads to loses, then modify it and try again. Shifting from one strategy to another is a waste of time and funds. Remember, you take your time learning a new strategy. On top of that, you use your real money account to test it.
Solution: How to Find a working Strategy?
Well, as I stated earlier, a successful trader must have a trading strategy. There are many strategies on google, no doubt! However, if you are going to succeed, you have to settle for one specific strategy and build on it.
After selecting one suitable strategy, put it on the test. Remember to record all your outcomes when testing your strategy. Correct the adverse outcomes by making fine adjustments to suit your trading style. Testing a strategy is a less taken road by majority of traders who hope to make quick millions through shortcuts. The data you collect will draw the strengths and weaknesses of your strategy.
Testing strategies not only work in trading but also in any other business venture; entrepreneurship, start-up and even in science. It is an essential step.
How does this work: An Example
A great example of a trading strategy is buying when the RSI is oversold. However, this does not work in all cases. Therefore you need to improvise your strategy and know when exactly to buy when the RSI is oversold.
A reasonable adjustment will involve buying when the RSI is oversold, and at the same time, the Daily Open is a bullish (green) hourly candle.
No strategy is perfect. Even pro traders make mistakes. The aim is to add and deduct these adjustments until your strategy is near perfect. Your target is to minimise loses and maximise profits.
Furthermore, building a profitable strategy requires real sacrifice and dedication. That’s the reason why most established traders offer their strategy advice at very high rates. Put your time and effort into it, wholeheartedly, and you will see great results.
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