5 steps to becoming a successful trader

There is a well-known saying, “90 percent of traders lose 90 percent of their account balance.” This is actually true in the trading industry. One wonders if you as a trader can even succeed with these statistics. But this distribution probably applies to most areas of life.

However, you can learn to become a successful trader. This of course requires patience and a clear head, but also basic advice. What are the basic tips to be successful in trading and make money in the long term?

In this article we want you 5 basic tips hand, with which you can be successful in the future as a trader.

1. Define your trading style!

There are a total of 3 different trading styles:

  • day trading: Opening and closing positions within a day
  • swing trading: Open positions for a few days
  • long term trading: Traders open their positions for months and years, similar to the “Warren Buffett approach”.

When you make a trade, you must decide in advance how long you want to keep the position open. When there is a lot of volatility in the market, traders are more likely to choose day trading and swing trading strategies. In contrast, when the market is stable, they are more inclined to long-term trading or pure investment.

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2. Choose an asset class!

Once you have determined your trading style, you should decide what you will actually trade. You have a large selection of different types of assets: technology stocks like Facebook, precious metals like gold/silver or a cryptocurrency like Bitcoin.

There are a total of 600,000 listed companies and more than 5,000 cryptocurrencies in the world. When making your selection, you should first select a larger area before selecting a specific asset. This “top-down approach” is particularly suitable for swing trading and long-term trading.

For day trading, you can select companies and their assets that are currently experiencing high volatility. Then you should examine the company’s current status on the market.

Trade analysis

In any case, it is very important to stay updated. In the Cryptoticker Trading Group you will find ongoing news, price analysis and forecasts for cryptocurrencies. If you trade cryptocurrencies, you will always receive the latest updates.

3. Make your own analysis!

Be sure to do your own analysis! Many traders trust the analysis of other “experts” but lose money. Therefore, you should deal with the trading software yourself and do the analysis yourself. This is important for shaping your own unique strategy, goals and trading style.

Technical analysis is extremely important in defining your entry and exit trades. However, you should supplement this technical analysis with current news and other updates to make the best decisions overall.

For example, if you do technical analysis on a stock, it may show you that the stock is headed higher. But by missing out on important company news and updates, you could be making a bad decision that could end up costing you money.

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4. Set up a risk management strategy!

You take another crucial step towards becoming a successful trader when you realize when it is best to exit the trade.

For proper risk management as a trader, remember the following 3 things:

  • To entry level: This is the price you will enter the trade at. Here you always need strong support or resistance levels.
  • The output level: This is the price at which you exit the trade before the market reverses.
  • the risk-benefit ratio: This is the calculation of how much you are willing to risk in a trade compared to what you plan to win in the trade. Anything over a 1:2 ratio (risking $1 to win $2) is not recommended.

Always know these levels before making a trade. You should also automate the exit level so that your emotions don’t prevent you from exiting a trade at the right price.

Trade analysis

5. Document everything!

So once you’ve established a trading style, chosen an asset to trade, done your research and devised your risk management strategy, what do you need to do?

The important final step, perhaps even the most important, is the complete documentation of your trading activities. You must realize that many trades also involve losses. But it is precisely these that you must analyze and adjust your strategy over time and improve on the next trades. That’s the only way you can get better.

The documentation of your trades is also referred to as a trade journal. This can also just be an Excel spreadsheet where you include the asset class name, entry time, exit time, leverage level, net profit loss and perhaps additional comments. After some time, you will be able to evaluate your trading performance, recognize your bad trades better and see where you have done a good job.

Professional traders use the Kelly Criterion formula to see what percentage of their investment should go to specific trades. But you can always find other parameters that show your success.

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what to do now

Now follow these 5 big steps, implement them step by step and repeat the process over and over again! The only way is to get better, step by step, every day. This is the only way you can ultimately be successful.


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We currently have an exciting test offer for you! you can ours Premium membership Try it for 1€/day in the first month. Consider giving it a try if you want to stay updated on the crypto market! You will receive trading ideas and professional trading support in the premium area. In addition, you will often receive information about the latest crypto trends at an early stage! So could our customers also buy various NFTs early enough. If you want to read more about our Premium Trial offer, then click here!

Want to make money with Bitcoin? So come to our premium area and take advantage of exclusive trading ideas.

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