October 9, 2018
BitMEX Bitcoin Currency Trading Strategies
Sticking to a sound BitMEX bitcoin currency trading strategy is fundamental to doing well in bitcoin trading. The most irresponsible thing you could do with respect to trading bitcoin is to enter the market without a strategy. You may as well play Russian roulette! Wise bitcoin traders analyse the market carefully first, ensure that that they appreciate the intricacies of bitcoin trading, and then work off of a game plan. This is what’s referred to as a crypto currency trading strategy.
Although the crypto currency exchange market is constantly changing, you still require a currency trading strategy, preferably one that will help manage uncertainties and surprises. Here’s a few tips that make for a solid Bitcoin Currency Trading BitMEX Strategy:
First and foremost, you should determine exactly how much money you can afford to lose. You may think that this is a little cynical, but at the risk of sounding cliché, it’s not, it’s just realistic. The purpose of course is to make money with BitMEX trading bitcoin, but the risk is also quite real that you’ll lose some along the way. You will make some losses, it’s normal! It’s because of this that you should never invest money that you can’t afford to realistically part with. There are precautions that you can take that will help ensure that you don’t lose your total initial investment, using a good money management strategy. This must be a part of your currency trading strategy, you’ll be far better prepared than a lot of traders.
Don’t depend on one currency. Sounds similar to an old expression you have heard several thousand times before? Never put all your eggs in one basket, and the same goes for bitcoin trading. Should you do that, chances are much higher that your investment will be destroyed if that currency bottoms out on you. As with all investing practices, diversification protects you!
Investigate the market. This is vital to your currency trading strategy! Which direction is the trend going? What’s the overall mood among fellow traders? They all have a strategy too, and are eager to know what their peers think about the market conditions.
Give yourself a preset timeline. How long are you going to trade before taking your profits (or losses) and quitting for the day? It’s important to know when to quit.
Learn the rhythm of the market. Timing is everything: Enter at the incorrect moment and your potential profit evaporates. As you learn to judge the market and make trades at the perfect moment, your habitual profits will rise. A good BitMEX currency trading strategy will factor in this learning curve, and accommodate for a few mistakes in the beginning.
Above all, be ready for a few scares when you’re trading bitcoin. Currency trading strategies can get you so far, the rest is up to ingenuity and dare I say it, a little luck?