How do you find a trading strategy that can help you remain profitable for the long-term?
One of my favorite advice for any crypto investor especially those coming into crypto for the first time is to avoid trading (especially day trading) by all means.
I know it’s tempting to want to jump in and become the next millionaire in your family after a few weeks of “trading” but that’s only possible on Instagram, YouTube videos, and the internet where you hear guys killing it big with crypto trading. This is reality, let’s face it.
Ignore all the shills and pay attention –day trading does offer the “opportunity” to make quick money as well as the “guarantee” of losing money. If you read my line well you’ll pause a few seconds to think about it –you have the opportunity to make money accompanied with guaranteed loss.
Haven said all that, it’s not to discourage you from embarking on this journey to the Lambo Kingdom; it’s just a necessary reality check-up before we enter into the main business of finding a trading strategy or strategies that work just fine for YOU:
The problem with many people is that they’re too lazy to be able to make real money. You can’t be ignorant and be rich.
Money doesn’t fall in love with ignorant people. So if you want money to start courting you, then you got to wake up and learn up.
The first step to finding your trading strategy is to research the various trading strategies out there.
When and how do you use them? What are their unique strengths and weaknesses?
Identify and note down all the different strategies, styles, and techniques available for you to consider, such as:
- Day Trading Strategy
- Swing Trading Strategy
- Position Trading Strategy
- Trend Trading Strategy
- Scalping Strategy
- Range Trading Strategy
- Arbitrage Trading Strategy
- HODL Strategy
Gather as much information on each of these strategies as you possibly can and begin studying them one after the other.
Personally I am more of a swing and position trader; mixing it with scalping sometimes when in the mood of the action.
The next natural step after discovering what strategies are out there is to study them thoroughly with the aim of finding the ones that resonate with your personality and risk appetite and that you’re comfortable with.
Study them in-depth and try to master the few ones you like.
Which of them can best help you achieve your trading goals?
Do not pick the one that seems to be able to bring you the quickest returns – you’ll be laying a bad foundation for your crypto trading career if you do so.
You know your goals and how much time you have for this.
- Are you going full time or part-time?
- Are you planning on trading with a large sum or just a few bucks?
- What is your risk tolerance?
Trading is a serious business that can make or break you financially, so you must give it the right level of considerations before you put your leg forward.
You know, practice makes perfect.
You can know everything about every single trading strategy out there and that knowledge alone will not put money in your wallet.
It’s time to take action and put what you know to test.
Practice with your chosen strategy and refine their application to suit your personal preferences and goals.
Be creative in the application of your chosen strategy(ties).
Test on multiple criteria and find what works and doesn’t work for you.
Learn from your own experiences, adapt, and grow with it.
One good favor you can do for yourself is to avoid jumping from one strategy to another.
Pick one or two and be good at them until you become a master in those.
Dabbling between strategies will get you easily lost and confused and you wouldn’t know what works and what doesn’t work or why.
How did you discover that trading strategy that gives you an edge?. Share with us in the comments section.