Something that we all look for in our trading is ways to improve, ways for us to become more successful and more profitable. The good news is that there are countless things that we can do that can help to improve our overall trading results. Some of them can be pretty big changes, others can be relatively small, whatever it is, making these changes can really help improve our trading. So let’s take a look at some of the things that we can do to help us get better results out of our crypto trading.
Manage Your Risks
Risks are a central point when it comes to any form of trading and this is particularly true when it comes to crypto trading, based on the fact that the risks can be so big. Because of this, we need to ensure that we are managing them correctly. It is a little more complicated for crypto than it is for forex due to the fact that each coin acts and trades very differently. Different coins have different values per lot size, so you need to work those out. However, despite the differences, the way that we manage the risks is very similar.
We need to ensure that we have a risk management plan in the palace, things like a risk to reward ratio which dictates how much we are risking and how much we are trying to make. This will also tell us where we will put our stop losses, and of course, we will be using stop losses with every single trade that we make. We will control our lot sizes and the number of trades that we make and will keep our trading in line with the rules that we set up in our plans. Doing all of that will help us to control our risks and ultimately help us to get better and more consistent results from our crypto trading.
Diversify Your Trading
When it comes to trading, we will certainly have our favourite assets to trade, some will love Bitcoin, others Ethereum, and others something completely different. While it is good to have a favourite, a coin that we really like to trade, it is still important to diversify, to trade more than just the one. The main reason behind this is that it helps to reduce our risks, it helps us to ensure that we can remain profitable even when one of our trades is going the wrong way. A lot of the coins go the same way, when Bitcoin goes up, so do they, but some do not follow this same path. These are the ones to add, so even if Bitcoin were to go down, those coins may not, meaning that you can cover any potential losses from Bitcoin with the other coins. Of course, it is slightly more complicated than that, but it certainly helps and certainly works when done right.
Jot It Down
Do you have a trading journal? If not then why not? You need to get yourself one, these journals are a godsend and can really help you to up your overall game. In it you will be writing down everything that you are doing, from the entry position, the exit position, the time it is open, sizes, analysis is done, and more, it will be your source of information on what you have done and why. You can then use that information to help you to analyse your own trading, you can see what you are doing well, what you need to improve on, and whether or not your trades have been in line with your trading strategy. If you don’t have one yet, set one up, it only takes a minute or two to fill in with each trade and the results that it can help you achieve will more than makeup for the additional time that you are putting in.
For many people, the thing that is holding him back is not actually trading, as strange as it may seem, for many traders, actually placing the rads is the first issue that they will come across. Not all of us like risk, some of us are very risk-averse and get nervous and anxious every time there is any sort of risk involved. Due to this, some traders end up placing very few trades. When you find yourself in this situation you will also find that your profits start to suffer too. In order to get past this, you will need to kind of force yourself to place those trades, remind yourself that they are in line with your strategy and plan, the risk is being managed and that you won’t make anything if you do not place the trades. It can be hard to get past this stage, but if you manage to do it, you will eventually get used to the risks that are involved in your strategy and it will slowly become a lot easier to palace the trades on a more regular basis.
Continue to Learn
Learning is the cornerstone of trading, you can always find things to learn and you will never know everything. You can know pretty much everything that there is to know about your strategy, but as you continue to learn about other things, you will soon come to realise that there is actually a lot more than you can do with your existing strategy. In fact, some of the things that you learn you will then be able to implement into your current strategy even though you originally thought that there was nothing in relation at all This shows why it is so important to never rest when it comes to learning, always look for more to learn and you will be constantly improving on your trading.
Those are just some of the things that you can do as a trader which can help to improve your overall results. Some of them are quite simple and quick to do, others can take a long time, your entire career in fact. What is important is that you are constant;y looking for ways to improve, even the smallest change can make a big difference in the long run.