To become a successful broker and to exist in the world of digital trading you need to have not just money and some general knowledge about cryptocurrency but also a lot of patience and skill.
If you want to get the most out of trading without losses or nervous breakdowns, the real broker should remember several principles that are listed below for your consideration. Please, notice, these recommendations are not universal and final because only years of practice will show which rules you should follow in your career of trading. However, in the beginning, this may help you.
Play safe – chose large time frames
If a person is a first-timer in a sphere of trading and sees such notions as “transaction”, “digital wallet”, etc. for the first time he or she should use large time frames. Risk is great, however, it should be justified and calculated. This situation usually refers to professionals in their sphere. Although if you a newcomer all your decisions may turn into the risk that is not worth taking.
In the world of digital currency time frame means certain timespan (minutes, hours, days, weeks, etc.) where groups of quotation are shown on the diagram. Such groups display changes in the price of the asset. Usually, such an indicator is set up manually on analytical diagrams. In the case of first-timer, large time frames are more useful because they withhold market noise and levels of prices can be easily traced.
Although small time frames may bring more profit every ten to twenty minutes, they also may show data with overdue. Only those who can work with technical details may know how to make a profit out of them. However, this is a dangerous zone for those who do not know how to work with this tool which may lead to loosening any interest in the possibility of mining coins or loosening your money you invest. So, please, remember that the cryptocurrency market is liable to variation.
Don’t capitalize all your profits
Before you go all the way in and put everything in the account, you can split them into different pairs. First of all, trading should bring gratification from income but not from the process. You may always try a new strategy and risk everything at any time you wish. It is an interesting and educational thing to do. However, without savoring the result of your hard work you may lose interest in the whole trading process. We do not want such a thing, do we?
So, how to prevent such a thing? The main and only rule is to not capitalize on your profit. For example, you have $200. Do not urge yourself on trading everything at once. Sock them away. Sometimes it is nice to spend earned money on yourself.
Think Clear, Plan Ahead
No one has lost from planning. When you think with a clear head you have higher chances of forming a somber estimate of market tendencies and possible threats. Before entering the trading session, define levels of closing orders, record negative profit, and income.
Such planning helps to stay the course for a long period even if you have negative results. Some say the negative result is also a result. In a case of continuous failure try to unwind for some time and then come back to your tasks.
To risk or not?
There are many more principles of safe trading that professional brokers know for sure. However, if you are at the beginning of your trading path, try to consider our recommendations. They will help you stay cautious and vigorous at any time. We assume that each broker will add something from themselves because:
- people are prone to risk it all (in our case, all bitcoins they have);
- some brokers wish to make a fortune;
- some of us just like the thought of having virtual coins.
The given recommendations are formed on principles of risk management, thus they may be useful not only in the world of bitcoin, blockchain, and other virtual transactions.