Trading profitably isn‘t rocket science. You don‘t have to be a genius.
Anybody could do it, from an intellectual point of view.
However, there are 2 major problems which hold people back from making money with trading cryptocurrencies, and those are fairly simple:
1. Not having a clear plan for their trade and/or not sticking to their plan. Therefore they get emotional while watching price action.
2. Not taking profit when it‘s there.
Always ask yourself these questions before you trade:
1. What’s your goal (get more Bitcoin, more Ethereum, more USD?)
2. Why do you want to enter a trade – Which signals tell you that this price is going to go up (or down)?
3. How far do you expect price to move at least?
4. In which time frame do you expect price to move up (or down)?
5. Where would be your entry price?
6. Where would be your stop loss?
7. What’s your hedging strategy?
8. Where do you take profit?
With these parameters you are able to execute a trade, from the beginning to the end. Otherwise you don’t know what you are doing and probably end up with no profit or even a loss.
PS: Crypto Trading is different from Crypto Investing.