1. Set profit goals: Set a daily profit target of $100. This goal can be achieved through multiple trades, such as 4 trades of $25 each or 2 trades of $50 each.
2. Starting capital: Ideally, start with at least $10,000 for a more cautious trading approach. Less capital may come with greater risks and smaller profits.
3. Choose the right assets: Focus on well-known cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH), which often have more stable price fluctuations, making trading easier.
4. Trading strategies: Day trading: Make short-term trades, holding positions for a few minutes to a few hours. Scalping: Make multiple small trades, aiming for profits of $10 to $25 per trade. Breakout trading: Trade when the price breaks important support or resistance levels. Swing trading: Hold positions for a day or two to take advantage of short-term trends.
5. Use Technical Analysis: Moving averages: Identify trends in the market. Relative Strength Index (RSI): Assess whether the asset is overbought or oversold. Bollinger Bands: Measure price volatility to predict future fluctuations.
6. Manage risk: Limit risk to 1-2% of your capital for each trade. For example, with $10,000, your risk should be $100-$200. Use stop-loss and take-profit orders to protect your funds.
7. Stay updated: Monitor news and market events that may affect prices. Set alerts to receive real-time updates on significant developments.
8. Diversify: Avoid investing all in one asset. Spread your trades across multiple cryptocurrencies to reduce risk.
9. Track your progress: Keep a trading journal to review trades, identify patterns, and refine your strategy.
11. Daily profit plan: If you start with $5,000 and set a profit target of 2%, then the profit will be: 2% of $5,000 = $100. Achieve this target with 3 trades, each aiming for a profit of $33.
