There are many different strategies in cryptocurrency trading, and trend following is one of the most popular. This is an approach where you open a trade when the market starts to show a clear trend, and you hold it until that trend reverses. The essence of the strategy is not to try to predict the market reversal, but simply to follow it.
Keep a record of your trades
Keeping a journal of all the trades and decisions you made is a useful habit for any trader. This way you can analyze what works and what doesn't. Record:
When and at what price did you buy/sell.
Why did you make this decision (based on technical or fundamental analysis, news, etc.).
What profit or loss did you make.
This will help you learn from your own mistakes and improve your strategy with each new step.
Be prepared for volatility and sharp market fluctuations
The cryptocurrency market is one of the most volatile. The price of cryptocurrencies can jump by tens of percent in a matter of hours. This can be both an opportunity for profit and a risk of loss. It is important to be prepared for such fluctuations and not to panic if the market starts to change sharply. Using stop orders and taking profits will help minimize the impact.
