1. Define Your Daily Goal
Set a clear target of earning $100 each day. Break it down into achievable parts, such as three trades aiming for around $35 profit each or five trades with $20 profit.
2. Initial Investment
To trade comfortably, consider starting with a capital of about $5,000. This allows for better risk management and a more sustainable approach.
3. Select Your Assets Wisely
Focus on established cryptocurrencies with high trading volumes, like Bitcoin (BTC) or Ethereum (ETH). These assets have the liquidity needed for quick trades without drastic price shifts.
4. Develop a Trading Strategy
Scalping: Execute numerous small trades for profits of $10-$20 each.
Day Trading: Make quick trades based on daily price movements, holding positions for minutes to hours.
Swing Trading: Look for opportunities to hold trades for a few days when the market shows promising trends.
5. Utilize Basic Technical Analysis
Incorporate easy-to-understand tools:
Moving Averages to identify current market trends.
Relative Strength Index (RSI) to detect potential overbought or oversold conditions.
Volume Indicators to gauge the strength of price movements.
6. Practice Solid Risk Management
Never risk more than 1-2% of your total capital on a single trade. For a $5,000 account, that means limiting your risk to $50-$100 per trade. Always use stop-loss orders to minimize losses.
7. Stay Updated on Market Trends
Monitor news and developments in the crypto space that could affect prices. Setting up price alerts can help you react quickly to market changes.
8. Diversify Your Portfolio
Donât concentrate all your trades on one cryptocurrency. Spread your investments across several coins to reduce risk.
9. Keep a Trading Journal
Document each trade, noting the strategies you used and the outcomes. This will help you learn from your experiences and refine your approach over time.
10. Daily Profit Example
If you aim for a 2% return on a $5,000 investment, that translates to $100. To achieve this, target four trades with a profit of $25 each. By following this structured plan with discipline and good risk management, you can work towards your daily earnings goal in spot trading