Learn Bitcoin Trend Following Strategies
A trader must create a bitcoin strategy which they stick to when trading the online btcusd cryptocurrency market. A trader must have the discipline to s broken then the sentiment of the bitcoin strategy at all times. That's why it's better to come up with strategies which are profitable - profitable bitcoin trading systems will be much easier to follow and stick to. This is because one knows that by following the rules of their system they'll be successful.
A carefully designed strategy which has been back tested and proven to produce profitable results is one of the keys to becoming successful when trading the btcusd market. This type of strategy will make it easier for the trader to follow the guidelines of their bitcoin strategy because they already know that the strategy is profitable, therefore keeping up the discipline to continue following the bitcoin crypto currency strategy will be much easier.
Successful bitcoin trade strategies also will include:
1. Bitcoin equity management rules
2.BTCUSD Crypto Currency Trade Psychology Mindset
These two will greatly improve the success of any crypto trading system.
However, Let us look at bitcoin price action method before narrating on bitcoin money management & bitcoin trading psychology.
Bitcoin Trend Following Strategies
Bitcoin Trend following strategies are depending on first of all determining the overall market trend, whether the btcusd market is moving upwards or it is moving downwards. After determining the btcusd market bitcoin trend the trader will then only open trades in one direction.
Upward bitcoin trend - in an upward bitcoin trend prices keep moving up, and here the trader will keep opening buy cryptocurrency trades.
Downward bitcoin trend - in a downward bitcoin trend prices keep moving down, and here the trader will keep opening sell cryptocurrency trades.
The different strategies of determining the btcusd market trends and the two most popular ones are:
Bitcoin Trend-Lines - traders will draw bitcoin trendline on the bitcoin price chart to determine the current general market movement. Once the bitcoin trend direction is determine a trader will then open cryptocurrency trades once the bitcoin price touches the bitcoin trend line or when bitcoin price is close to the bitcoin trendline. The trader will only open trades in direction of the market trend.
When markets form trends, the bitcoin trend will have a lot of momentum and this momentum will mean that the bitcoin prices will keep moving in that direction for a period of time that lasts for quite some time.
Trading the bitcoin trend is one of the most profitable way to trade the btcusd market if a trader catches a bitcoin trend that has already formed they can make a lot profit just by trading in direction of the bitcoin trend & the longer the bitcoin trend stays the longer a trader can continue to make profits. Some major bitcoin trend might last for years and these can prove to be the most profitable setups especially when they last for years.
MAs Strategies - Another bitcoin trend identification strategy is the use of the 20 day moving average, and when bitcoin prices are above this moving average the btcusd market is bullish and if bitcoin prices are below this moving average the btcusd market is bearish.
The 50 day moving average is also used for determining the medium term bitcoin trend, while the 200 day moving average is used to determine the long term bitcoin trend of the btcusd market.
Traders also can use 2 moving averages to form the moving average cross over technique, this method will have a shorter period moving average & a longer term moving average & these 2 will be use to determine the current market trend. For examples a trader can use the 5 day and 7 day moving averages, & for this strategy the bitcoin trend is upwards if both these moving averages are moving in the upward direction and the bitcoin trend will be down if both these two moving averages are moving downward.
This system will indicate the bitcoin trend is about to change one these two line cross over each other. This signal will be a god time to close trades if a trader has open trades.
Bitcoin Strategies Tips
Once one has come up with their bitcoin strategy, they should also include the following so that to make their bitcoin strategy more successful.
1.Bitcoin Trade Equity Management Rules
2.Bitcoin Trade Psychology
BTCUSD Trade Equity Management Rules
Bitcoin equity management rules should be part of your bitcoin trading strategy - these rules will help you as a trader to manage risk. This means that you'll use the two rules of bitcoin trading money management - these are risk : reward ratio and draw down reducing method when placing your trade transactions to determine the lot size that you'll open in the btcusd market. The most popular bitcoin equity management rule use in cryptocurrency & the one that you should also add to your trade plan is the rule that says one should never risk more than 2% of their account balance on any one single bitcoin trade.
To learn and know more about these two bitcoin equity management rules, traders should study the bitcoin equity management tutorial that's on the learn bitcoin courses section of this web site under the bitcoin trading key concepts courses.
Bitcoin Trade Psychology Mindset
In order for a trader to become successful when trading the btcusd cryptocurrency market one has to learn about bitcoin trading psychology. The bitcoin psychology or mindset that's required to become successful in bitcoin trading is one that avoids the emotions of fear and greed while trading the btcusd market and is a mindset of total discipline that a trader will follow all their rules & their bitcoin trading strategy and only trade with signals which are generated by their bitcoin strategy. With discipline one won't trade unless their bitcoin trading strategy gives a signal. A trader will have the mindset of only following their bitcoin system 100 Percent all the time without second guessing the system. A disciplined trader also will not open trade transactions in btcusd market just because the btcusd market has started to move up or down, instead a trader will wait for a trading signal to trade to be generated by their bitcoin trading strategy.
In order to learn more about bitcoin psychology and how to manage emotions while trading the online market one can read the bitcoin trading psychology guides from the learn bitcoin courses section of this web site under the bitcoin trading key concepts courses.
