Trading can seem like an intimidating world, but it doesn't have to be. I recently ventured into trading with just $65 and turned it into $765 in a relatively short amount of 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 was willing to risk. Before I started, I decided on two key principles:
1. Risk Management: I have made it 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, steady gains of 2-3% per day.
I chose Binance as my trading platform also because of its low fees, intuitive interface, and access to various trading tools.
Learn 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 have helped me spot potential entry and exit points.
Divergences: Knowing bullish and bearish divergences has given me an edge in predicting trend reversals.
My favorite resources were YouTube tutorials, free e-books, and trading forums.
Choosing the right strategy
I have adopted scalping and swing trading strategies:
Scalping: Making quick trades to profit from small price movements.
Swing Trading: Holding positions for a few days to profit from larger price changes.
I started trading cryptocurrencies like Bitcoin (BTC), Ethereum (ETH) and other altcoins with strong momentum. I avoided highly volatile or obscure coins to minimize risk.
The professions that worked
1. Identifying Trends: I noticed that Bitcoin was forming a bullish divergence. Using RSI, I opened a long trade with $30, keeping a tight stop-loss. This trade gave me a 12% gain in just two hours.
2. Patience with Swing Trades: I invested $40 in a promising altcoin after studying its fundamentals. In five days, the coin increased by 25%, giving me $10 profit.
By adding these earnings, I gradually increased my trading capital.
Key lessons learned
1. Discipline is key: I stuck to my strategy and avoided emotional decisions.
2. Using Stop-Loss Orders: Protecting myself from large losses ensured that my profits were not wiped out.
3. Small wins add up: Instead of aiming for one big win, I focused on small, consistent gains.
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Mistakes to avoid
Overtrading: Initially I made too many trades, suffering unnecessary losses.
Ignoring Research: A couple of times I have entered into trades based on hype rather than analysis, which has proven to be counterproductive.
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Reaching $765
After about four weeks of disciplined trading, my account grew to $765. By carefully reinvesting profits, I was able to increase my trades without commensurately increasing my risk.
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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. Track your trades: Keeping a journal helped me identify what was working and what wasn’t.
4. Be patient: Trading is a marathon, not a sprint.
Turning $65 into $765 wasn't just about making money; it was also about building confidence and learning skills that would serve me well in the long run. If I could do it as a beginner, you can too, with the right approach and mindset.