How to trade with the major trend in cryptocurrencies
Trend trading strategy has always been the best way to secure profit. People often get biased and try to earn money without doing proper research. They trade the tops and bottoms and loses money. In crypto trading, you have a huge advantage when it comes to the trend trading technique. The majority of the digital asset is a strong uptrend, so you don’t have to deal with the short trade setup. Though deeper correction often takes place in the cryptocurrencies but still the trend is up in the longer time frame.
Things will differ when you take the trades in a shorter time frame. For instance, during the sharp fall in BTC/USD pair after securing a record high at $20,000, the correction was so deep, that we can call it a short term bearish trend. Well, there are many things we can consider while analyzing the trend. But today we will learn a simple way by which we can take trades like a pro.
Analyze the daily trend
Instead of analyzing the weekly or the monthly, trend we are asking you to analyze the daily trend. By analyzing the daily trend, you will be able to make a profit in a shorter time frame. This means, if you execute a trade, you can close the trade with a week. When you analyze the daily chart, use the trend line tool, Fibonacci retracement tool so that you can find the endpoint of retracement. By using such tools, you can execute quality trades along with the trend. Those who are having trouble using this tool can rely on the demo account. The demo account can create a perfect environment for the retail traders so that they can learn cryptocurrency trading without risking any real money.
Use a professional trading account
To trade the cryptocurrencies, you need to open the trading account with companies like bigX. If you trade with the unregulated account, chances are very high you won’t be able to make a big profit from this market. As a currency trader, remember the fact, trading is all about managing the risk in the most efficient way. If you trade with a broker that offers insane leverage, you might lose most of the money. You have to carefully find a good broker and trade with discipline. The strict rules associated with the premium trading account will force you to stay disciplined.
Stop trading with a big risk
To trade with the major trend like a pro trader, you must stop trading with a big risk. Those who are thinking that taking the trades with high risk helps them to become a millionaire is making a big mistake. You must learn to lower down the risk profile at trading or else it will be tough to manage the trade. People often think cryptocurrency trading is a shortcut way to get rich. But if this was so, no one in that world would have lost money.
Blend the news data
Trend trading strategy might seem an easy task but you must learn to analyze the news data. The major news can cause a massive change in the trend. Though you might know a lot about this market but the safety of your investment is at your hand. You don’t have to spend a huge amount of time to know about the major news and its impact. If you visit the bigX site, you can get the latest news on cryptocurrencies and this will allow you to take the trades with discipline. After you become skilled at analyzing the market data with the help of news, you won’t have trouble securing the profit. While trading with the trend, keep the risk low. Try to learn from the losing trades. Never get excited and try to recover the loss by investing a big sum of money.