1. You should set aside a certain percentage of your profits for the future
There is a terrible tendency for inexperienced traders, in particular, to reinvest all of their profits. This action is a bad trading strategy because it fails to account for the risks associated with the trades.
Investing should always be a net positive for you, so set aside a portion of your profits each month. Otherwise, one bad trade could put you in the red, which is the last thing you need to happen.
2. Not all your money should be invested in a single trade
Spread your money out over many smaller transactions rather than investing it all at once. Reduce your risk of suffering from a significant loss in this manner. Trade multiple pairs instead of investing mainly in one currency pair.
Spreading helps you know more about other trading pairs. You will get more insight into the market and see possible alternatives to your most preferred coins.
3. Create Trading Plans
Take your time if you want to become wealthy. Patience and self-control are essential trading attributes. Keep an eye on when you should go into the market and leave or take a break from it.
Setting daily trading goals will help, and once you have met your daily objective, you should take a break till the next day. By doing this, you lower your chances of making pointless trades or suffering meaningless losses.
4. Treat each business as if it were a brand-new venture
Exuberance can lead traders to lose their senses and put their entire portfolios at risk, which is foolish and dangerous. If something goes wrong, the last thing you want to happen is to lose all of your money. A lot of this is true if you have no idea how long it will take to complete the deal.
5. Consistent trading is essential
Yes, we said you should have a trading plan. Having this set out is pointless if you do not strictly comply with it. However, this consistency should be maintained with the demo section and not solely with your real account. Most Bitcoin bots allow you to practice trading before you head out to live trade. Because of this, you should use Demo trading to discover how the crypto market operates consistently.
6. Always start with the bare minimum
A minimum of $250 in operating capital is required to utilize Bitcoin Compass. Always begin with a bit of investment and work your way up to a larger one over time. Understand the fact that your ability to take on more risk as a trader increases with experience.
However, it would be best if you always remembered that the amount of money you may risk should be equal to the amount of money you can afford to lose before it has a significant impact on your bank account.
7. Seek help appropriately
Never be shy or reluctant to seek help or insightful advice when needed. Even the most perfect trader can easily make a mistake due to an oversight. So, you as a newbie should always seek help whenever you need it. You should go to the appropriate place and in the correct order.
When any issue confounds you, you should first check it with the support center. The next place you can get help is from a seasoned trader who has all the expertise to help you out. Your last point of contact should be the internet and not the other way around.
8. Never test-run a new tactic with your live account
Avoid using an untested strategy on your live trading account, no matter how promising it might seem. Always use the demo account for this purpose. Even, you should sometimes reconfirm the efficiency of your current trading tactics. It will help you avoid any unforeseen loss due to market changes that warrant a change in strategy.
9. Read through the guidelines and terms and conditions
Make yourself rightly acquainted with all the trading guidelines to walk you through the market without incurring a loss. You will become familiar with the nitty-gritty of the cryptocurrency market.
Also, do not forget to read through all the terms and conditions of using Bitcoin Compass. You will get to know how it operates and the things they hold responsible.
10. Stay away from mental stress
Never trade in an unstable mental state. Our psychological state of mind plays a vital role in our analysis and decision-making. A mind devoid of stress will enter trades rationally.
Also, you should not enter any trade irrespective of its profitability potential when you are emotional. It has been discovered that emotions cloud judgment.