#تعلم Dear trader, you are not here to lose 💯👌
The second most important thing after risk management is to develop a clear trading strategy.
Why is strategy important?
Trading without a plan is like driving a car without a map, and it can lead to random losses. Having a strategy helps you:
Reduce hesitation and randomness in decisions.
Improve your chances of making sustainable profits.
Deal with different market conditions with confidence.
Elements of a successful strategy:
1. Choosing a time frame:
Determine the type of trading that suits you:
Day Trading: Open and close trades on the same day.
Long-term trading (Swing Trading): Hold trades for days or weeks.
2. Determine profit and loss targets:
Determine the target profit level (Take Profit) and the stop loss level (Stop Loss) for each trade.
3. Choosing the right currencies:
Focus on currencies with high liquidity (such as Bitcoin and Ethereum).
Follow currencies with strong projects, not just popular currencies.
4. Use technical and fundamental analysis:
Technical analysis: Study charts and indicators to determine entry and exit points.
Fundamental analysis: Follow news and developments affecting cryptocurrencies.
5. Market timing:
Avoid trading during times of high volatility or major events (unless you are experienced).
Take advantage of the most stable times to get clear opportunities.