As a required process for responsible digital currency trading, before you even open an account, you should determine exactly what your objectives for the Bitcoin exchange market are. Only then is it time to take the first steps towards opening an account with the intention of trading digital currencies. Just to clarify, the very first step is to develop clear-cut strategies for trading, and only after that step has been thoroughly planned out, then and only then, is it time to act upon those objectives. You must shy away from developing a time frame of when you plan to accomplish parts of your objectives. Doing so will entice you to do a less-than-thorough job of developing your strategy for the simple sake of meeting a random, self-imposed time deadline. Take whatever time you need to create a viable, profitable plan. You must also prepare for any possible failures that could happen when taking part in the market. It never a bad idea to create a backup strategy.
Some traders choose to set a 2 percent stop loss for each trade. Whatever you decide, proper money management is going to be critical to your success. Crypto currency trading is never a sure fire game and big wins can be completely erased by losses rapidly. It’s easy to get involved the game of it all and run the risk of losing more of your money than you should. The best traders rigidly adhere to proper money management rules and avoid letting their emotions tempt them into bending or violating those rules. By setting a 2 percent stop loss you are shielding your account from potentially substantial losses and you will stay positive in the market for the long run.
If an automated Bitcoin trading software application offers a 100 percent guarantee of profits, or claims that you can avoid taking any type of significant drawdown, you are dealing with lofty marketing claims that will prove to be nothing more than wishing thinking for the sole purpose of selling the trading software. Search for an automated trading system that discusses truthfully what they do and how you can use this data to optimize your earnings and make informed decisions. The old rule that “if it sounds to good to be true, it is,” certainly applies. Let’s face it, most people would rather buy an automated trading robot that only needs to be set once and will deliver huge, automatic trading profits every single day. The problem is that no such software exists. Ignore any company making such claims.
Lastly, when learning to use the system, trade with tiny amounts until you develop a successful track record. Only then should you risk more than a few dollars per trade.