Cryptocurrency trading is no different than any other profession. To make a living from it, you need to get an education, and then spend a period of time practicing and refining your skills. Unfortunately there is a lot of people who think trading cryptocurrencies is easy. This couldn’t be further from the truth. Trading for a career is not just having wins, but also keeping the money that you make. Many people who jumped into cryptocurrencies at the end of 2017 have probably lost a ton of money in the past month after the huge retracement in all the cryptocurrencies. If you fall in this category, or you are new to cryptocurrency trading and are wondering how to get started, you need to read this article thoroughly. Here is the steps you need to take in order to become a profitable cryptocurrency trader.
Get An Education
Most great traders in the market spent months studying the market before putting a single dollar into the market. Over 90% of people who try trading fail, so what makes you think that you can succeed without proper education and preparation? It is even more important that you educate yourself if your goal is to become a profitable cryptocurrency trader, since this is such a new and volatile market. Cryptocurrencies are so volatile that if you do not study them thoroughly or learn risk management before investing, you will risk losing a lot of money. Investing in trading education will save you thousands of dollars of mistakes that you would make from trying to learn trading on your own.
Learn From Successful Traders and Their Mistakes
You can learn how to trade cryptocurrencies the hard way by losing money in the market. Or you can learn from others mistakes who have already gone down the path you are looking to take. Warren Buffet, one of the most successful investors in history: “It is better to learn from other people’s mistakes as much as possible.”
You can expodentially shorten your trading learning curve by learning from experienced traders rather than make all the mistakes yourself. I teach you everything I know about trading in our cryptocurrency trading bootcamp, where you will learn everything you need to know to become a profitable cryptocurrency trader.
Practice In A Simulator
There is no reason to risk real money until you have proven you can execute a trading strategy successfully. Practicing in a simulator will allow you to explore different trading strategies and find out which strategy is best suited to your personality, risk tolerance, and the time you want to put into trading. Practicing in a simulator will save you thousands of dollars of mistakes. There is no reason to risk real money until you can prove that you are profitable on a simulator.
Make A Trading Journal
In order to know what strategy and trading setups you are best at, you need to track every trade you take. Once you have enough data, (ideally from at least a month’s worth of trades) you will know where your edge is. We also teach you how to track your trades in our bootcamp, and I will show you exactly how I track my trades so you can figure out what setups to focus on that will make you money.
Starting Trading Live With Small Size
Know that you have figured out a profitable trading strategy, it is time to execute it with real capital. Trading with real capital is completely different from trading on a simulator, due to the emotions and the trade executions. Success on a trading simulator does not equate to success trading real capital. For this reason, you need to start with small size to see if you can execute your strategy with the same success you had on the simulator. Once you see one or two months of successful trading with small size, you can start to slowly increase your position sizes.