Always learn as much as you can about the currencies you trade, and read any financial reports or news that you can get your hands on. The news contains speculation that can cause currencies to rise or fall. Try setting up a system that will send you a text when something happens in the markets you're involved in.
Stay away from thin markets when you first begin Bitcoin trading. A thin market has little liquidity or price action.
Never base your trading on your emotions. Do not let emotional feelings get a hold of you and ruin your train of thought. It can spell disaster for you. While some excitement or anxiety is inevitable, you always want to trade with a sensible goal in mind.
Watching for a dominant up or down trend in the market is key in Bitcoin trading. Selling when the market is going up is simple. You should try to select trades based on trends.
Do not attempt to get even if you lose a trade, and go!! do not get greedy. Bitcoin trading requires that you stay patient and rational, or you could make poor decisions that will cost you dearly.
Put each day's Bitcoin charts and hourly data to work for you. You can get Bitcoin charts every 15 minutes! However, short-term cycles like these fluctuate too much and are too random to be of much use. Go with the longer-term cycles to reduce unneeded excitement and stress.
Many traders who are new to Bitcoin are understandably excited, devoting lots of time and energy to the pursuit. After a few hours, it is difficult to give the trades the focused attention that they require. The market is not going anywhere, so take breaks to clear your head and refocus.
In reality, a winning plan of action is the exact opposite. Create a plan for yourself ahead of time. This will help you to resist the urge to make impulsive decisions.
If you do use this technique, hold off on choosing your position until your indicators show a clear top and bottom are present. Calculating the top or bottom of the market is still a risk, but doing diligence and getting some confirmation on trends will reduce the risk.
Tracking gains and losses of a certain market is possible by using the relative strength index. This may not reflect your own returns, but it should give some indication of the attractiveness of the particular market. It might be wise to rethink an impulse to make investments in historically unprofitable areas.
Bitcoin can be used both for the purpose of supplemental income or as a sole source of income. This depends solely on your ability to make good trades. In order to achieve this success, you must focus on learning how to properly trade.
