Trading any commodity can be all-consuming because you have your hard-earned money on the line. Day traders and swing traders are glued to the monitor or their dual monitor setups morning, noon, and night, not daring to take their finger off the pulse in case they miss an opportunity to buy or get out of a trade that has gone south.
Markets such as the London Stock Exchange of the American Nasdaq Stock Market have set hours, making it easier to lead a relatively everyday life. However, cryptocurrency markets and the best Bitcoin betting sites are up and running 24 hours per day, seven days per week. A trip to the store can result in you missing an opportunity to double your money. There comes the point where trading cryptocurrency can take over your life, but taking heed of the following tips should assist you in keeping your cool and perhaps your sanity if you are considering trading cryptocurrency online.
Set Rigid Working Hours
Where traditional stock markets are open for trading during specific times, the cryptocurrency world never sleeps; it follows the sun and continually runs. This can lead to you spending your entire waking life in front of a computer screen, willing the markets to move in your favor.
Counteract this by setting some working hours in stone. Classify 09:00 to 17:00 as your working day regardless of where you live in the world. You may wish to work 09:00 to 12:00 and then 14:00 to 18:00 instead. Pick the hours that suit your circumstances and stick to them religiously.
Doing this allows you to strike a work-life balance where once you have closed out your positions at your finishing time, you are done for the day and can go about your daily life. Treat trading like a business, and you will become more professional.
Do Your Research and Stick to Your Plan
Only ever make a trade that you have thoroughly researched and never make decisions when you are in an emotional state. If you have studied a particular trade and set a stop-loss for a reason, use that stop-loss and never move it. So many traders have a great plan only to change it mid-trade because things are going better or worse than expected. Stick to your game plan.
Managing Your Bankroll Is Crucial To Success
Figures show that more than 90% of day traders lose money, and most of those who show a profit do not make much more than a regular job. Even those who make a lot of money day trading cryptocurrency make a lot of trades resulting in losses. However, successful traders make more winning trades than losing ones or make more money from the wins than they lose from the losses.
Having a trading bankroll is essential to success and longevity in the world of trading. Your bankroll can be $100 or $100,000 but is always only made up of money you can afford to lose should the worst happen and you lose your entire investment. Never bet more than 2% of your available bankroll on any given trade in order to reduce your risk of ruin substantially. This means the size of your transactions will increase and decrease as your bankroll does the same.
Trading with money you can afford to lose takes some of the mental pressure from your shoulders. Conversely, trading with money needed for your day-to-day life can lead you to make trades you should not just so you can make money or prevent losses.
On a slight tangent, it is worthwhile having additional revenue streams to your trading income, even if you are almost full-time. Income from trading is volatile at the best of times, so having another income source helps you ride out the rough patches without worrying about paying your bills, etc.