Home Trading What is the the optimal strategy?

What is the the optimal strategy?

- Advertisement -


5 min read 

This is part 2 of our most extensive guide for choosing your own  trading strategy/method. The goal is to provide every trader with the opportunity to decide what’s best for them depending on their trading preferences.

In part 1 we spoke about the timeframe and the asset. These two things are, essentially, the main factors, which a trading strategy/method is based on. However, there are other things to consider when creating a trading plan – internal factors such as trader’s experience, approach and goals. These personal traits largely influence the way you trade, so it is just as important to pay attention to them in order to be able to make more informed decisions. 

Experience

Novice traders who are just starting to explore the peculiarities of trading may not be ready to use the same tools and techniques as their more experienced counterparts. How much do you know about trading? 

If your answer indicates that you are still not sure about the basic concepts, this could be a good opportunity to brush up on them. Before trading with real funds, it is crucial to learn the essential terms that you may encounter in the process. Checking, for example, the common candlestick patterns as well as understanding the purpose of graphical tools and indicators may help with developing a working trading approach, too.

Should you be well-informed about the basic trading tools, you may dive deeper into more advanced trading strategies, like, for instance, the Elliott Wave theory. It does not mean that the methods used by novice traders are irrelevant, it just might be a great way to broaden your horizons and explore the financial market a bit deeper.  

Goals

Setting your priorities in trading is quite similar to setting your goals in life. While some just want to have fun, others are focused on achieving results. What outcome do you expect from your trading?

Though it is not possible to predict if your outcome will be positive or negative, since trading is quite risky, it is still important to visualize your desired result. It will help you understand if you are more of a long-term investor or a short-term trader. 

Realizing your goals is also a good starting point for planning a risk management approach. Calculating your capital and the amount of funds you are ready to invest and, potentially, even loose, will help you to decide what methods you prefer to use and help establish the trading routine. For instance, based on the trading capital, a trader will be able to plan the amount of deals they wish to execute. 

Realizing the goals in trading is the first step that every trader has to take in order to plan their further activity accordingly. It may help to improve a lot of common mistakes that novice traders make.

Conclusion

Planning a personal trading strategy may seem complicated, however, once you break it into components, it is much easier to manage. In order to make up your own trading strategy, check parts 1 and 2 of this guide and answer the questions in each paragraph. Read the linked materials and use them to your advance. Good luck!



Source

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
467FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,558FollowersFollow
2,230SubscribersSubscribe
USD - United States Dollar
EUR
1.22
GBP
1.37
CHF
1.13
NOK
0.12
JPY
0.01
CAD
0.79
AUD
0.77

Most Popular

bitcoin
Bitcoin (BTC) $ 32,107.00
ethereum
Ethereum (ETH) $ 1,260.74
ripple
XRP (XRP) $ 0.272325
tether
Tether (USDT) $ 0.999569
bitcoin-cash
Bitcoin Cash (BCH) $ 430.61
bitcoin-cash-sv
Bitcoin SV (BSV) $ 174.19
litecoin
Litecoin (LTC) $ 138.92
eos
EOS (EOS) $ 2.74
binancecoin
Binance Coin (BNB) $ 41.14
okb
OKB (OKB) $ 5.90
tezos
Tezos (XTZ) $ 3.19
leo-token
LEO Token (LEO) $ 1.40
cardano
Cardano (ADA) $ 0.343128
monero
Monero (XMR) $ 139.74
stellar
Stellar (XLM) $ 0.269545
chainlink
Chainlink (LINK) $ 24.11
huobi-token
Huobi Token (HT) $ 5.81
tron
TRON (TRX) $ 0.029709
usd-coin
USD Coin (USDC) $ 0.999233
dash
Dash (DASH) $ 106.72
neo
NEO (NEO) $ 25.27
iota
IOTA (MIOTA) $ 0.452955
nem
NEM (XEM) $ 0.216674
zcash
Zcash (ZEC) $ 87.76
maker
Maker (MKR) $ 1,432.36
paxos-standard
Paxos Standard (PAX) $ 1.00
ethereum-classic
Ethereum Classic (ETC) $ 7.65
vechain
VeChain (VET) $ 0.030391
true-usd
TrueUSD (TUSD) $ 0.999500
ftx-token
FTX Token (FTT) $ 9.83
kucoin-shares
KuCoin Token (KCS) $ 1.15
waves
Waves (WAVES) $ 6.63