1. Set a Clear Profit Target:
Aim to make $100 daily. You can break this down into smaller goals, like 4 trades of $25 each or 2 trades of $50 each.
2. Initial Capital Requirements:
Start with at least $10,000 for conservative trading. If you have less, expect higher risks and smaller profits.
3. Choose the Right Assets:
Focus on established cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH). Their stable price movements make them easier to trade.
4. Trading Approaches:
- Day Trading: Hold positions for minutes or hours for quick gains.
- Scalping: Make numerous small trades, aiming for $10 to $25 profit each.
- Breakout Trading: Trade when prices break through key support/resistance levels.
- Swing Trading: Hold positions for a day or two to capitalize on short-term trends.
5. Use Essential Technical Analysis:
- Moving Averages: Identify trends.
- RSI: Spot overbought or oversold conditions.
- Bollinger Bands: Analyze price volatility to predict movements.
6. Risk Management:
Keep risk per trade between 1-2% of your capital. For a $10,000 account, limit risk to $100-$200 per trade. Always use stop-loss and take-profit orders.
7. Stay Informed:
Follow market news and events that could affect prices. Set up real-time alerts for crucial developments.
8. Diversify Your Portfolio:
Don't put all your money in one asset. Spread trades across different cryptocurrencies to reduce risk.
9. Record and Review Your Trades:
Keep a trading journal to track performance, identify trends, and refine your strategy.
10. Calculate Your Daily Profit Plan:
If you start with $5,000 and aim for a 2% return, 2% of $5,000 is $100. Achieve this by making 3 trades with a $33 profit target per trade.
