90% of day traders are broke in less than a year. This figure, applicable to trading for years, contrasts with the insolent success of a few talented traders. What is lost by some is gained by others, it is the market system. Crypto trading has certain specificities that distinguish it from regulated markets. To simplify, we can say that it is more dangerous and more accessible. More dangerous because money is rarely safe, the risk of scams is high and the risk inherent in trading itself is just as if not greater than in trading other assets such as stocks or stocks. fiat currencies. Volatility that increases risk also offers more opportunities for gains. Finally, the access in a few clicks to a trading platform and the availability of the market which remains open 7/7 h24 makes it an activity where many are tempted to burn their wings. To help you get started in crypto trading without taking risks, follow these tips:
Tips for getting started in crypto day trading
Don’t invest any money up front, just simulate. By practicing on a fictitious portfolio, you will be able to familiarize yourself with the various trading instruments and gain your first experience. Becoming a successful trader takes a lot of time, learning and discipline. Each mistake is paid for in cold hard cash, so it is wiser to only commit fictitious money at the start.
The most efficient and easy-to-access platform is currently TradingView. The demo account allows you basic use with 100K play money. It is advisable to invest in a token that has liquidity such as Bitcoin or Ethereum for example.
Most successful traders have a strategy. A strategy in terms of trading is a method. This method mainly defines: the entry point of the positions, the exit point of the positions and the share of risk. A few additional rules complete the panoply of the rational trader:
- le money management qui consiste à n’exposer tout au plus qu’1% de son capital dans chaque trade
- la prise en compte des news : les éléments macro-économiques qui ont un impact sur le marché
- la régularité dans les horaires de trading
- une approche dénuée d’émotion, basée sur les mathématiques, les tests sur des données historiques
- l’humilité de se remettre en question et la curiosité d’améliorer sa stratégie
- money management, which consists of exposing no more than 1% of your capital in each trade
- taking news into account: macro-economic elements that have an impact on the market
- regularity in trading hours
- an emotionless approach, based on mathematics, testing on historical data
- the humility to question yourself and the curiosity to improve your strategy
A basic strategy: MACD + RSI
MACD allows to analyze the trend (bullish or bearish). It is advisable to work in the direction of the trend. It is bearish on a 1 day time scale, bearish on a 1 hour time scale, the same on 15 minutes and the RSI curve has just crossed 80, which means an overbought, it’s time to place a sell order. Conversely if the signals are opposite. When to go out? As soon as you have collected a max. Easier said than done and this is where talented traders come into their own. There are several signs to consider, including resistances and supports. These are lines that pass through at least two candles. These lines constitute technical and psychological thresholds on which prices tend to reverse. By identifying these supports, it is possible to go back and forth (scalping) to capture multiple small gains. Keeping an eye on MACD and analyzing the shape of the candles, including on 1-minute type timeframes, can improve your performance in picking exit points.
One last tip to end this quick article that will be updated: use stop-losses. It is better to cut the finger than the arm, and it is generally advisable to place your stop loss at double the stop win: 10 losses for 20 gains. Note that many traders use wider ratios. This means that they regularly lose trades but the gains are large enough to compensate, with the remaining objective of using a winning strategy.