26.05.2020
It is every trader’s dream to get to the top of the trading game. At the top, the returns on investment are much better, while the trading itself is less overwhelming. Once you get a good grip on how to trade, it becomes an everyday joy to make money from it. It is especially true for the Bitcoin market, where the price of BTC changes rapidly, making room for profitable trading.
But how exactly can you get there? What is it that the top traders do differently to enjoy massive success in their trading? In her exclusive op-ed for forklog.media, CEX.IO Chief Product Officer Alona Dobshynska shares her advice to newbie and experienced traders.
How to Become a Better Trader
Trading, be it crypto trading or Forex trading, is a very dynamic industry, which changes by the day. The strategies that worked a few years ago, might not necessarily work today. For instance, a few years ago, cryptocurrencies were not part of trading activities. This, therefore, calls for constant upskilling to stay in the loop.
If you want to always stay ahead in the game, then here are five simple steps to help you upskill your trading.
Step 1: Redefine Your Ambitions
Your ambitions in the trading game will dictate your strategy and end game. Ask yourself these questions: ‘What do I want to achieve from this trading?’, ‘How much am I willing to commit to trading?’, ‘Will I take up trading as a profession or as a side hustle?’
Once you have an idea of what you really want to achieve from trading, you can then work out a plan on how to increase your chances of achieving your goals. A lot of traders enter the game blindly without a plan. As such, they can’t tell if they are making any progress in their daily trades.
Lay down a marker on what you want to achieve and how long you think it will take you to get there. This will make the next steps of upskilling your trading much easier and more feasible.
Step 2: Choose An Execution Plan
So, you know where you want to be in ‘X’ years. How are you planning to get there? What trading style will you adopt? How much finance do you have at your disposal to commit to trading? What trading platforms and brokers will you be using?
There are many trading techniques in the modern-day trading industry. Your choice will be determined by your ambitions as each comes with its own risk profile. You ideally want a technique whose risk profile is close to your original plan’s risk range.
It is imperative to take time and study your trading technique and make sure that it fits your trading ambitions. Although there is no trading strategy that guarantees profits, some of the best techniques in the market almost always have a positive income when the trader executes them to perfection. So again, take some time to study a technique before choosing it. You will need to stick to it through thick and thin, and you’d better choose a technique worth sacrificing for.
You should also choose a trading platform that suits your needs. Fortunately, there are many venues—exchanges, professional trading platforms, and even forex markets that support cryptocurrency. Go through the platform’s features to make sure it accommodates scalability in the event of growth before settling on it.
Step 3: Start Small, Remain Disciplined
Once you have decided on the platform, it’s time to focus on trading. If you are new in the industry, it is advisable to start small. No matter how much you have at your disposal, it is always wise to learn the ropes while risking as little as possible.
The most important part of trading is STICKING TO YOUR STRATEGY. Remain as disciplined as possible. Don’t let small losses sway you into changing your technique. The more you waver from your original plan, the higher the chances of making losses.
If you wisely studied and chose the right trading technique, it will start paying dividends sooner or later.
Step 4: Always Keep A Record of Your Trades
The most experienced and successful traders always have a printed record. On these printed charts, the traders indicate their entry and exit points. Some even scribble the reasons behind making the decisions they made at the time of trading.
This approach is efficient since you can take time to analyze all your trades. This will help you understand when your trades are doing best and when you are at your worst. Learn from the charts.
Not just the performance of your trades but also your emotional state affects making decisions. Once you learn to control your emotions, you will realize that you are making informed decisions and reaping massive benefits.
Step 5: Let The Positives Deprive The Negatives
Once you have an idea of the strategies that are working positively for you, start feeding them more. Increase your stakes and take more risks. On the other hand, trim the impulsive thoughts which force you to make bad decisions. This will reduce your losses.
Over time, you will realize that you have perfected your strategy of trading and even curated your personalized technique which works for you as an individual.
Conclusion
It takes time to become a refined trader but the steps above will accelerate the process. If you remain disciplined and keep your emotions in check, you will become a great trader. There is no other secret to success in the trading industry—you simply have to gradually work your way to it.
There are a lot of benefits in trading when you are on top of your game and they are waiting for you to upskill. Upskill yourself today.
DISCLAIMER: The views presented here are of the author’s and are not necessarily shared by the editorial board of forklog.media. This article is not investment advice and shall not be construed as such. The editorial board of forklog.media shall not be held liable or responsible for any decisions made on the grounds of this article. Users engaging in trading proceed at their own risk.
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