1. Set a Profit Goal: Aim for a daily target of $100, which could be achieved through multiple smaller trades, such as 4 trades of $25 or 2 trades of $50 each.
2. Starting Capital: It's recommended to start with at least $10,000 for a safer approach. Lower amounts increase risks and may result in smaller gains.
3. Choose the Right Assets: Focus on well-established cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH), as they tend to have more stable price movements, making them easier to trade.
4. Trading Strategies:
Day Trading: Make quick trades, holding positions for minutes or a few hours.
Scalping: Carry out multiple small trades, aiming for profits between $10 and $25.
Breakout Trading: Trade when prices break through key support or resistance levels.
Swing Trading: Hold positions for a day or two to capitalize on short-term trends.
5. Technical Analysis:
Moving Averages: Identify market trends.
RSI (Relative Strength Index): Evaluate if an asset is overbought or oversold.
Bollinger Bands: Monitor price volatility to anticipate potential movements.
6. Risk Management: Limit risk per trade to 1-2% of your total capital. For example, with $10,000, risk no more than $100-$200 per trade. Use stop-loss and take-profit orders to safeguard your funds.
7. Stay Informed: Keep up with market news and events that may impact prices. Set up real-time alerts for important updates.
8. Diversify: Donât place all your investments in a single asset. Spread your trades across different cryptocurrencies to minimize risk.
9. Track Your Trades: Maintain a trading journal to review your trades, spot patterns, and continuously improve your strategy.
10. Daily Profit Plan: With $5,000, targeting a 2% return will yield $100. This could be achieved through 3 trades, each aiming for a $33 profit.
