1. Set a Practical Profit Target
Aim for $100 per day. You can achieve this by making several smaller trades, such as 4 trades each with a $25 profit, or 2 trades with $50 profit each.
2. Required Capital
Start with at least $10,000 to trade more safely. If you have less capital, youāll need to take on more risk to reach $100 daily.
3. Choose the Right Assets
Focus on high-volume cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH). These offer liquidity and price movement, allowing you to enter and exit trades quickly without large price fluctuations.
4. Trading Strategies
Day Trading: Short-term trades lasting a few minutes to hours.
Scalping: Multiple small trades aiming for profits of $10-$25 each.
Breakout Trading: Trade during key price level breakouts.
Swing Trading: Hold trades for 1-2 days when market trends are strong.
5. Basic Technical Analysis
Use simple tools like:
Moving Averages to identify trends.
RSI to check if a cryptocurrency is overbought or oversold.
Bollinger Bands to gauge volatility.
6. Risk Management
Limit your risk to 1-2% of your total capital per trade. For example, if you have $10,000, risk no more than $100-$200 on any single trade. Use stop-loss to protect your funds and take-profit to secure gains.
7. Stay Informed
Stay updated on market news and events that can influence prices. Set up alerts or use news aggregators for timely updates.
8. Diversify Your Trades
Donāt focus all your capital on one cryptocurrency. Spread your trades across different assets to reduce risk.
9. Monitor Your Performance
Keep a trade log to track your progress, identify patterns, and understand where you can improve.
10. Daily Profit Plan
If you have $5,000, aim for a 2% return to hit $100. This could be done with three trades, each targeting a $33 profit. By sticking to this strategy, maintaining discipline, and managing risk effectively, you can work towards making $100 a day from spot trading.
