Trading - Practice Makes Perfect, Or Close Enough!

Monetizing The Frustration

Investing in Crypto can sometimes become rather frustrating. If you zoom out and monitor the price action, it’s often a case of three steps forward, two steps back. Previous gains are erased. This is a dynamic that cannot be avoided, and is why investing is best coupled with trading. However, one must have trading skills. Trying to trade as a noob is most definitely not recommended.

The Crypto market is inherently volatile and cannot be avoided. The best solution is to find ways to benefit from the volatility, rather than experiencing temporary gains. Trading remains one of the easiest ways to accomplish this. I have often addressed various strategies that I use. Buying low and selling high should be a single aspect of a trading strategy, not the entire strategy.

It can take a while to develop a strategy. However, once in place, it becomes a case of practice makes perfect. The more you trade, the better your results become. It is, however, imperative to trade within the confines of your strategy if you wish to perfect it. Choosing to trade any old way won’t get you the results you need to establish and solidify your strategy.

An effective strategy should apply to any market and at any time. Once this has been achieved, one can enter the market and begin extracting value. Consistent results encourage higher amounts of collateral, provided the strategy is grounded in the appropriate use of risk management. I prefer to be heavy-handed regarding risk management. I like safety, as it encourages consistent trading.

Trading with weak risk management practices will often result in being sidelined by an unexpected market movement. I prefer to trade in a way that keeps me active, regardless of what the market decides to do. This can only be accomplished by utilizing the appropriate risk management. Consistent trades, coupled with great risk management, are at the heart of my trading strategies.

Litecoin, for example, traded as high as $120 yesterday and is currently trading at $115. That’s a 4% move that can be leveraged. Benefiting from the daily volatility adds up over time. Consistent trades lead to substantial profits. One needs to remain active and safe.

Final Thoughts

New traders should use demo accounts before using funds. This should not be considered investment advice. These are merely my views and practices within the market. Always conduct personal research, and enjoy the ride. All the best, see you next time!

Disclaimer

First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in my receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.

This article was first published on Sapphire Crypto.

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