TIPS: MAXIMIZING PROFITS OF Bitcoin SYSTEMS
1. Define Simple Bitcoin Rules & Follow the Trend
The simpler the trading system is the better. If the cryptocurrency trading system is too complicated, it will be very difficult to stick to the rules. Complicated trading systems are also very confusing. A simple bitcoin system makes it easy to follow the trading rules.
2. Eliminate Risk Quickly and Let Profits Run
Minimizing trading risk is far more important than making money. Our first objective in bitcoin trading is to make the trade less risky. We do this by entering only trade setups, setting stop losses, cutting losses quick and never average down, and letting the profitable trades run for a while, just long enough but not too long so as increase the profits. Profitable trades are only kept open as long as the trading system shows the trend is in place, these transactions should be closed immediately once your exit signal criteria is generated by the trading system.
3. Choose the Right Crypto Instruments
Once you have your trading system, you will want to start testing it on a demo trading account. A trading system will give different results for each bitcoin crypto.
To maximize the profitability of your trading system find the most active cryptocurrency market hours for a chosen bitcoin crypto and trade during that market session only.
4. Use Trading Money Management Rules
Always risk less than 2% per bitcoin trade transaction. With compounding, you will be surprised to see how quickly your account grows once you begin to trade with a profitable trading system.
5. Keep a Bitcoin Trading Journal
Keeping a log of all your trades will help you to become a better and better and will help you follow the trading rules of your cryptocurrency trading system. A bitcoin journal will also keep track of your profitable trades and losses and you can analyze why a trade setup was profitable and why it was not.
6. Set take Profit Targets
Establish a daily, weekly or monthly profit targets when trading the btcusd trading market. Once you hit this target. This will stop you from over-trading and will also stop you giving back your profits the btcusd market. Keep your reward to risk ratio high, a 3:1 reward to risk ratio is best. This means opening bitcoin trade transactions only when you've the probability of making 3 times what you are risking.
Example of signals generated by our trading system
Example 1: Buy Bitcoin Signal & Sell Trading Signal Generated By System
Buy signal is generated by the indicator based trading system, then an exit signal is generated before another reverse sell cryptocurrency signal is generated on this chart
Example 2: Two buy signals generated by Trading System
Two buy crypto trading signals are generated during the upward trending market
Examples 3: Exit Signal Generated by System
Examples of Crypto Signals Generated by a Trading System
Other Tips
Learn Bitcoin Education
First tip is to learn about the Bitcoin Market (Learn Cryptocurrency Lessons), those who don't learn the required trading knowledge from the various bitcoin trading tutorials online will not improve their trading results no matter how many tips they have read. By not learning bitcoin trading, these traders will keep making the obvious mistakes made by bitcoin novice traders without even realizing what they are doing, Cryptocurrency is a wide topic and in order to make profits a trader will have to learn bitcoin trading first.
Get a Bitcoin System
A trading system is a must for every trader, a trading system is used to determine what bitcoin trading decision to take. A trading system gives a trader an edge over others who don't have a bitcoin trading plan. A good bitcoin trading plan is one that is back-tested and proven to produce profitable cryptocurrency trades. After coming up with your trading system you should back-test it on a Demo Account.
Learn Bitcoin Money Management
Learn about The Various Trading Money Management Lessons, don't attempt to trade the online market if you do not have bitcoin trading money management guidelines. The 2 bitcoin trading management lesson that you must learn are:
What is Bitcoin Money Management
Bitcoin Money Management Methods
Learn about Bitcoin Leverage & Margin
If you don't know what is cryptocurrency leverage & how it works and how it can affect your bitcoin trading margin, then you will not make any money in the btcusd market and you will lose your money in the btcusd trading market.
Have a Written Trading Plan
A bitcoin trading plan will take into account all the above bitcoin trading tips and summarize them within one document that you can use to trade the bitcoin market.
In General
The first goal should be taking your time to really ascertain what your bitcoin trading goals are and how much money you wish to make. Once this is determined then the following three suggestions will help you on your way to start Bitcoin Trading. It is essential to keep all the three goals in mind when executing all of your bitcoin trade transactions but at the same time this isn't a black & white guide to bitcoin trading success.
The first thing is to remember that you really need to work with short term trades until you become profitable and know how to properly monitor these trade transactions. You should trade bitcoin trading short term because this way you can monitor your bitcoin positions and quickly close any bitcoin trading position whose trading signal setup reverses. In order to truly benefit from the trading system you have to be willing to take up the effort to watch the btcusd market to see exactly how long you can keep your money invested in the btcusd market. Making short term bitcoin trading investments will help you to monitor your cryptocurrency trades and control all the risks, do not leave orders open when you are away from your computer or when you are going to sleep, close all bitcoin trade transactions & only open cryptocurrency orders when you can monitor them.
Although it is very important to increase the amount of trades that you are investing each time that you trade - some bitcoin trading guidelines should to be followed. The general rule of bitcoin trading tends to be never to trade more than two percent of your total bitcoin account equity. This of course makes sense when you have a lot of money in your bitcoin trading account but what if you only have a couple of hundreds. Two percent of $10,000 equals out to be $200. Even though it is safer to follow this rule it really does not make a lot of economic sense with smaller bitcoin accounts. If you are investing on Bitcoin this is when bitcoin trading leverage kicks in to effect and makes all of the difference. In General the more bitcoin trading capital you have to invest the better in terms of bitcoin money management.
The final suggestion is taking a bit of time to make sure that you get all of your bitcoin trading details correct before opening any one trade transaction, this will be the best method. Keep it simple makes just as much sense in market than anywhere else. Although this may require more time and effort to build up your bitcoin profits it will save you money in the long term.
Trying to keep your thinking as clear as possible will make your bitcoin trading journey easier but knowing when to break from the norm is also important. Moving towards the right path will make success that much more easier to obtain and by learning all of the steps and logic you will be able to continue making profits. Bitcoin is not hard to learn but a lot of traders lose money quickly because of not taking the proper steps in preparation and learning.
