Hello to all cryptocurrency traders. This time, I want to answer the 5 most popular digital money questions. After all, many beginners who are just starting to invest or trade tokens often have difficulties and problems that they want to solve. I’ll tell you all about this further. Go!
Why does the price reverse after my stop loss?
Perhaps the most popular question is “I put a Stop Loss, and the price touched it, and after that, the market turned around and went back up. Why?”. The point is that you act like most novice traders who enter a trade too sooner or later. You do not take into account the technical and graphical analysis of cryptocurrencies, therefore, you make mistakes.
The solutions to the problem are as follows. 1) Learn to set Stop Loss in accordance with technical analysis. First of all, this is to take into account support and resistance lines, candlestick patterns (bullish or bearish engulfing, head and shoulders, inverted head and shoulders, and others), chart patterns (triangle, wedge, flag), Elliott waves, and Fibonacci levels.
2) Do not put Stop Loss, but close the deal with your hands when the price reaches a loss that is comfortable for you. 3) Use Averaging instead of Stop Loss in Smart Trade 3commas. 4) Use 3commas bots with Safety Orders (these are automatic averaging) instead of Stop Loss. And it is better to use options 1 and 3, when that analysis and averaging are taken into account.
Acceleration of a deposit in a crypto – myth or reality?
How to overclock or quickly increase a cryptocurrency deposit is the second popular question. Most of the market participants come with 100, 500, and a maximum of 1000 dollars in their account and are eager to quickly increase their money with minimal effort. However, this is rare.
Of course, you can be lucky that you just happen to buy some kind of token that will fire 2 or even 10 times. Or take a 10x leverage on Binance Futures and earn 10 times. But this is usually an exception to the general rule and luck. One or several times you are lucky, you will get a taste and then the moment will come when the market will punish you and you will lose everything.
Therefore, you should increase your deposit gradually and carefully. This is done in two ways. 1) Investing in promising coins for a long time, from several weeks to several months. 2) Trading cryptocurrency in accordance with risk management, using Take Profit and Stop Loss or Averaging in Smart Trade 3commas.
How to make trading decisions when trading crypto?
The third popular question is how to start acting and making decisions about transactions when trading cryptocurrency? Often we are afraid, hesitant or nervous to open a new trade. And after opening it, we worry, we cannot relax and fall asleep, we constantly check the chart and quickly close the deal ahead of time at a loss or small profit, and the price goes further up.
It is worth learning to control your emotions such as fear, greed, joy, and overconfidence. In one of the materials on botcryptotrade.com, I have already touched upon the topic of trading psychology and examined this issue in detail. 1) For example, it is worth trading only a small percentage of the deposit so that the potential losses are small.
2) Set notifications about deals when the price reaches the required level – this will save you from the need to frequently check the chart. 3) Trade on a 1D chart – that is, open no more than 1 deal per day. 4) Trade 1 or a maximum of 3 cryptocurrency pairs. 5) Take a break and rest from trading for a few days. 6) Use 3commas bots to save your time.
How to start a newbie in crypto trading?
The fourth popular question is how to start a novice trader to trade? It is worth starting with the development of technical and graphical analysis, candlestick patterns, Fibonacci levels, support and resistance levels, and so on. It is also important to pay attention to money management and work with the psychology of the trader in order to control your emotions and not overestimate the risks.
I recommend for beginners to start trading only one pair through Smart Trade 3commas with the Averaging function. Trade only TOP 10 coins such as BTC, BNB, ETH, LINK, XRP, ADA, and others. You can trade 3-5 tokens, but then it is imperative to use cryptocurrency bots to save time and maximize profits.
What to do with the profit from transactions in the crypto?
The fifth popular question is whether to withdraw profit from transactions or keep it to increase the deposit? It is best to withdraw 50% of the profit and leave 50% to increase the deposit. I understand that many will prefer to leave 100% for a quick increase in the deposit, but this will not lead to anything good. Sooner or later, you will overestimate the risk and you may lose all your money!
Withdrawing 50% of the profit and using this money, for example, buying yourself delicious food, going to a restaurant, vacationing in another country or a car – you will feel real money! This is a very important point because you will be motivated to improve your trading performance. Therefore, always withdraw 50% of the profit from each month. If there was no profit, then we are not displaying anything.
The video about the 5 most popular questions about cryptocurrency trading is coming to an end. In general, summing up all the answers, a beginner needs to study the technical analysis of cryptocurrencies, Japanese candlesticks and patterns, support and resistance levels, risk and money management, trader psychology and withdraw 50% of the profit from transactions every month (if there was a profit). That’s all until the next videos on botcryptotrade.com