Trading can seem like an intimidating world, but it doesn't have to be. I recently ventured to trade with just $65 and turned it into $765 in a relatively short time. This journey taught me valuable lessons about discipline, strategy, and patience. Here’s how I did it as a beginner, step by step.
Start small with a plan
I started with $65, an amount I didn’t mind risking. Before I began, I decided to follow two key principles:
1. Risk management: I set a rule to never risk more than 5% of my total capital on a single trade.
2. Realistic goals: Instead of chasing overnight wealth, I aimed for small and consistent gains of 2-3% per day.
I also chose Binance as my trading platform due to its low fees, user-friendly interface, and access to various trading tools.
Learning the basics
As a beginner, I focused on understanding:
Market trends: I studied price charts to identify patterns.
Indicators: Tools like the RSI (Relative Strength Index) and MACD helped me spot potential entry and exit points.
Divergences: Learning about bullish and bearish divergences gave me an edge in predicting trend reversals.
YouTube tutorials, free e-books, and trading forums were my preferred resources.
Choose the right strategy
I adopted scalping and swing trading strategies:
Scalping: making quick trades to capitalize on small price movements.
Swing Trading: holding positions for a few days to benefit from larger price changes.
I started trading cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and other altcoins with strong momentum. I avoided highly volatile or lesser-known coins to minimize risk.
The trades that worked
1. Identifying trends: I noticed that Bitcoin was forming a bullish divergence. Using the RSI, I entered a long position with $30, maintaining a tight stop loss. This trade gave me a 12% profit in just two hours.
2. Patience with swing trades: I invested $40 in a promising altcoin after researching its fundamentals. In five days, the coin rose by 25%, giving me a profit of $10.
As I accumulated these profits, I gradually increased my trading capital.
Key lessons learned
1. Discipline is key: I stuck to my strategy and avoided making emotional decisions.
2. Use stop loss orders: protecting myself from large losses ensured that my gains didn't disappear.
3. Small wins add up: instead of aiming for a big win, I focused on consistent small gains.
---
Mistakes to avoid
Overtrading: at first, I made too many trades, leading to unnecessary losses.
Ignoring research: A couple of times, I made trades based on hype instead of analysis, which proved counterproductive.
---
Reaching $765
After about four weeks of disciplined trading, my account grew to $765. By carefully reinvesting the profits, I managed to increase my trades without proportionally increasing the risk.
---
My advice for beginners
1. Start small: only use money you can afford to lose.
2. Educate yourself: knowledge is your best weapon in trading.
3. Keep track of your trades: maintaining a journal helped me identify what worked and what didn't.
4. Be patient: trading is a marathon, not a sprint.
Turning $65 into $765 was not just about making money; it was about building confidence and learning skills that will serve me in the long run. If I could do it as a beginner, you can too, with the right focus and mindset.