Although it is quite easy to operate and does not require special knowledge, you must choose your tactics correctly. You will often hear experienced investors say that they can “sense” the direction of an asset just by looking at a chart. This may sound great, but for a trader’s strategy it is not entirely acceptable. Investments are based on economic data and analysis. Investing is not a “total” casino bet, you don’t need to risk 50/50, your success and profit depends on your patience. Traders sometimes base their decisions on technical and economic data for short-term trading, fundamental analysis is recommended for longer-term options. Never trade on emotions – this is a rule of thumb for novice traders.
Focus on your skills
When trading, it is wisely advised to focus on one class or type of the underlying asset in order to figure out why and how it is moving. Understanding the price movement and changes in an asset is almost always more beneficial for traders than understanding the many different types of assets. A short-term speculative trade does not require diversification as a risk management strategy as it always works for short-term speculative Bitcoins trading.
It is useful to consider break-even points for multiple transactions. Probability calculation provides traders with information on what percentage of trades they must win to break even. It is very easy to accomplish this task; the only information needed is the amount won under the in-the-money Bitcoins contracts and the amount lost under no-money contracts. By subtracting these quantities multiplied by the percentage of their occurrence and setting the equation to zero, the equilibrium percentage of in-the-money transactions required can be seen.
When traders make a profit and earn bitcoin, they can sometimes overlook the little things that eat away at profits. Profits and losses are fixed and no brokerage fees are charged to open a trade, making it easier to manage your money strategy. No spreads, no brokerage fees! However, operators must be careful to pay attention to withdrawals and learn to manage them wisely.
However, whether it is a single transaction or a portfolio, a trader, knowing the break-even point and distribution of profits from trading Bitcoins, has the necessary information to manage risks and significantly reduce risks. With a little experience and real practice, an investor will be able to almost automatically estimate the potential profit and rate of return required to succeed.