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Saturday 28 April 2018

A Guide For Cryptocurrency Trading For Beginners

By Barbara Clark


Trading online is an opportunity for many people to be their own bosses. This gives them a platform to work on their own pace without being rushed for deadlines and meeting targets. The most interesting part of cryptocurrency trading for beginners is that all this happens in the comfort of their homes.

It has always been hard for beginners to understand the ropes of how the stock exchange works. The rapid change and overload of markets always keep them on their toes trying to learn. This is the reason why most beginners feel that they will never be ready to start participating in the market.

It is important for novices to start with simple tricks when starting to trade. These will make them learn more things without them being demotivated. A day trade will be good to start with. This is whereby traders will be online for a short time, opening and closing a position on the same day. This type of exchange allows you to go for long and short shares which is the buying outright and the borrowing for reselling respectively.

For entry points, it would be ideal to make use of the imbalance of supply and demand. When the demand is high, the commodity price increases. This is when you should start trading. Always pay attention to the price chart for rapid changes like these. These rapid changes will give you a chance to make high returns or high losses, depends on you only.

In this business, being greedy is very dangerous as it can make you lose everything that you would have worked hard for. This can happen if you make a profit once or twice, then the share prices keep on going up and you keep on bidding on them. Eventually, the price can crumble down whilst you are still online thereby losing everything. To avoid this, make sure to always set a target before your start. If you reach the designated target make sure that you go offline.

As a beginner, it is very important to understand the proper risk-reward ratios. The proper ratios will open you up for small losses and big wins. As someone new to the game; a risk-reward ratio of 3:1 would be ideal when setting up targets. With the more experience gained you will be able to attain higher ratios.

Patience is a virtue. If there are no opportunities that meet your criteria there will not be any reason for you to do anything. In this investment, discipline is essential. Always stick to the plan you would have made from the beginning.

Other things to consider when you are a beginner are never to risk too much capital at one go. Always set a specific percentage of the total budget you will put on the market for the day. Also risk the amount of money you can afford to lose. Do not limit yourself to only stocks exchange. There are other assets like forex, futures and options that have volatility and liquidity as stocks. Lastly, learn from experience and allow yourself to grow in the business.




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