For many years now, online brokers via their trading platforms have been offering access to the foreign exchange market allowing retail investors to trade currencies. From now on, some online brokers also offer crypto currency trading. Discover in this article 7 tips to successfully trade real and virtual currencies investing in cryptos.
TRAIN YOURSELF AND FIND OUT
Be aware that trading currencies and currency crypto requires solid knowledge in general financial and economic culture, but also to know and practice many techniques related to trading, such as technical analysis and its mathematical indicators, graphical analysis and his different figures and to be familiar with the order book and stock market orders.
DO NOT GO AGAINST THE TREND, SHE IS YOUR FRIEND
As a result, in a bull market buy declines and in a bear market sell rebounds.
It is unconscious in terms of currency trading to think that the market is wrong.
For encrypted currencies, if you expect to anticipate a trend before the introduction of an encrypted currency, you can participate in its ICO or Initial Coin Offering that will allow you to invest at a preferential price in cryptocurrency. In which you believe before its launch.
LET THE PROFITS RUN AND CUT THE LOSSES QUICKLY
If you are advised not to take your winnings too quickly on a winning trade, do not delay too much. It’s the best way to lose everything! Use takes profit orders and to limit losses, use stop orders. Better, use trailing stop orders to protect your profits or reduce a potential loss.
OBEY STRICT RULES OF MONEY MANAGEMENT
It is essential to set goals for profit and loss. And to respect them!
Keep some distance from your trading and especially your earnings. Do not think that you are gifted because the market is always right.
ALWAYS KEEP A FOOT IN THE REAL
Although testing your strategy with a virtual account is recommended, do not consider that your performance on this account will necessarily be representative of your performance with a real account.
Do not lose the meaning of the value of money either. Do not take the game at the expense of your private or professional life. Do not spend 12 hours staring at your screen to follow the courses by chaining orders.
And be careful, keep a foot in the real world, it is not necessarily obvious if the motto you trade is virtual! But it is possible. Rely on tangible elements and concrete information on which crypto currency to invest in: stay informed on cryptocurrency websites, review developer training and skills, and more.
PREPARE A STRATEGY BEFORE ENTERING THE MARKET AND DO NOT TREAT IMPULSIVELY
They will prevent you from going astray and giving way to euphoria or panic. This is all the more true in the cryptocurrency market where volatility is such that without a well-defined trading plan, you are sure to run for your loss.
In addition, invest only money that you are willing to lose and never your savings precaution.
STAY SIMPLE IN YOUR STRATEGY
Whether it is currency or trading encrypted currencies, an effective strategy remains a simple strategy, which you can explain in a few sentences, which is based on concrete, specific and factual and not on beliefs or fanciful anticipations.