Topic: How to maintain profitability in crypto trading - page 3. (Read 744 times)

A trader only increases capital when the understand what they are doing. An average trader or less experienced trader will still blow down an account no matter how big the capital is. But for well experienced traders it will be a good tool to their advantage but in the absence of large capital instead of going as far as taking loans it is better to grow a small account size patiently with reasonable profit targets because advices like this can trigger loan taking.

One of the ways we can make profits continually as a trader is for us to work with the right people, upgrade our strategies if we have one, and have a good trading journal. We also have to work on ourselves because sometimes we might to forced or lured as a trader to trade contrary to our daily trading plans which if we continue like that, it might have us to start exhibiting a poor act of trading that can jeopardize our trading arsenal in a long term. This mostly happens like a mere thing and before we knew it, it will become an addiction that could cause us some loses we might not be able to handle.

Having a big win doesn't mean you are already a profitable crypto trader. Profitability means that you are consistently winning in the market with higher win percentage than you losses. If you are profitable trader, it doesn't mean that you do not lose. Losing is inevitable in all types of financial market. It is impossible to not lose and there are no 100% win rate strategy in trading. But how can we become one of the successful traders who keep making money in this type of volatile market? The answer is simple and the important things already mentioned above. There are a lot of different trading strategies and you can try all of it but make sure to master just one, people think that successful trader have hundreds of trading strategies without knowing that they usually use one and it is called niche. If you master one of it, there there is a big chance that you can make money once the chart patters appear before you.

The consistently winners also have good risk management, they now when they will enter, they know when is their target profit, they compute on how much loss that may incur if the trade got invalidated and they know the importance of diversification to lessen the risks. The risk management is the queen while the price action is the king, if you have both skills on technical analysis and risk management then there is a high chance that you can be one of those consistently making money in trading.

Finally, you have to be selective in choosing a safe wallet to store assets like bitcoin, because this is far more important than trying to increase investment in trading. The first and second points tend to be made by short term traders because they have to keep their eyes on the market and make research every day, believe me not everyone has the constant ability to engage in this kind of thing, except for those who have worked part time in trading. If you are one of the daily traders, then the advice you convey seems to be enough to follow and continue to study so that you get the maximum.

But for me, especially for bitcoin, it still maintains a long-term investment pattern and even if it is involved in trading, it is more of a selling need and for the method of collecting bitcoins, usually do DCA or when the moment of decline and I will use extra capital to buy it. The pattern of people must be different, especially for those who actively trade every day and for people with long-term investment patterns.

most of what happens is that they want small capital but get big profits, this triggers an unhealthy portfolio, so they are likely to go bankrupt. it's different from when the bigger the capital, even though it takes a small percentage of profit, but it has a large nominal besides that we can trade more relaxed and enjoy it so that our common sense will be maintained. things like this are difficult to implement, because there are still many assumptions that by trading we can make a lot of money in a short time, until finally greed appears

Maintaining profitability in crypto trading can be challenging due to the volatility and unpredictability of the market. However, there are several strategies that traders can use to increase their chances of success:

Develop a Trading Strategy: Having a well-defined trading strategy is crucial to profitable trading. This strategy should include entry and exit points, risk management, and profit-taking levels.

Manage Risk: Risk management is essential in crypto trading. Traders should only risk what they can afford to lose and use stop-loss orders to minimize losses.

Keep Up With News and Market Trends: Keeping up with the latest news and trends in the crypto market can help traders make informed trading decisions.

Diversify Your Portfolio: Diversifying your portfolio across different cryptocurrencies can help spread out risk and increase the chances of profitability.

Use Technical Analysis: Technical analysis can help traders identify trends and patterns in the market, which can help them make informed trading decisions.

Have Realistic Expectations: Traders should have realistic expectations about their profits and not let emotions like greed or fear cloud their judgment.

Keep a Trading Journal: Keeping a trading journal can help traders track their progress and identify areas for improvement.

By following these strategies and maintaining a disciplined approach to trading, traders can increase their chances of maintaining profitability in crypto trading. However, it's important to remember that the market is volatile and unpredictable, and losses are always a possibility.

Just like in business adding more capital is a way to increase profit and market market share.
However, when it comes to trading, I know we wanted more but must have to think that it adds risk as well. I'd never find it a good option in trading unless it was really necessary if our capital is very small. We should not be greedy in trading and must know contentment otherwise, this would lead us to addiction and we know what will happen when greediness is on our side - out of control and losses.

An accumulation strategy by placing an additional budget to trade without selling assets beforehand may seem a good one to consider. The intent is clear, but it's not the only way to maintain profitability.

Growing capital and maintaining profitability is very difficult when the market is as volatile as it is without an additional budget, but I agree that sometimes traders don't need to push to get in if the market is so volatile. I've been practicing the strategy, it can recoup your capital losses from falling prices when the recovery occurs, but may not be suitable for those who have no other income for a extra budget.

True. There’s no guarantee that trading will be 100% profitable because you are dealing with a very unpredictable market, that even pros in trading also end up losing when the market condition does not favor their trades anymore. Although there’s high chances of making profits if you have better experiences in trading, but you can’t assure that trading will always be profitable. It’s a matter of losing and winning actually, and those who only trade for greed and profits will never achieve being profitable in the end.

Even when you’re profitable with crypto trading, that does not mean that your whole life will just focus on it. Life is not just all about money making, you have to balance your work and pleasure so your life won’t be totally boring in the end. And in case of increasing your capital to maintain profits, I have to disagree with it. Large capital does not guarantee large profits too. However, it’s more certain that trading large amount of capital also comes with losing huge amount of money.

For me this is the most essential in maintaining profitability in cryptocurrency sphere.  Not only this will save us from unnecessary losses, it will also give us advantage in knowing the possible trend of the ventures we are dealing with.  Doing market research enable us to mitigate risk involved in certain ventures, it will also lead us to have a well sound decision because of the information we have in hand.

Not only that researching the market also enable us to know about the current trend of the market and it also enable us market that is about to phase out so we can avoid investing on it or sell our holdings if we have them.

I don't really agree here, you don't need to increase your capital. You can just even preserve your capital, and do proper risk management. Protect your capital at all costs, like always do have stop losses. Always think that not most of the time is a good to trade, sometimes you need to wait for better trade entry.

Agree with these since in trading, emotions are at high stake and if we let those emotions to take us, it will result to us being greedy and just really wanting to earn without proper planning. Everything goes into proper planning before you go on trading such as knowing really what you are investing to so that you can study its market and assess how profitable it can be. Also, you should plan how to handle different emotion and situation since these things can be of big factor and effect in the decisions that we do in trading. So, to maintain profitability in trading you should continually seek for better plan and do something to make it work best for you to achieve greater success in trading.

All of those things you pointed out requires some experience and to be fair skill. Not everyone does it, because not everyone is aware that they should have them, and the ones who do not all of them can do it, or learned how to do it. The worst kind of trader is the one who knows what they should do, and too lazy to do it and instead look for a shortcut, like check out signals or influencers.

Just realize that you have to end up with something much better when the time comes and you should be doing a better job with learning, do not be lazy and if you know what you should do then go and learn how to do it. All those shortcuts people are looking for will only give them short term success and long term loss, or maybe even loss directly from the start as well since it is not a good way to trade.

Just trade when you’re at your best. Sometimes, we tend to get carried away by greed and resort into instant trading, without knowing that the market could be your worst enemy if you trade without prior knowledge and experience in the market. Trading is a game of chance and luck, but more likely it’s a game of skills and experiences. The reason why we don’t need to rush in trading, only trade when you think you’re already capable to make profits, and not just trading with trial and error.

We all know if you increase your capital, then you will be able to increase the amount of coin which you will be able to buy, but you might increase your capital and you might not be making much capital compare to someone that’s using capital that’s not up to your own. Before you can be making enough money, then you will have to invest reasonable amount of money, but I believe everything is not just about money always, learn to do your analysis well or you might not still be making enough money even with much capital which you invested, you might even be losing your money. If your analysis is right, then you will be making reasonable amount of money.

In increasing your capital, I somewhat believe in that, because if you have a deep understanding of trading and know the tools to use in actual trading, it is not unlikely that you will actually get a daily profit. And that is one of the advantages of having a large capital according to what I have seen and observed.
Because if it's just a small capital, it will appear in the end that the profit will be a bit slow and don't expect it to be big either. Then it also depends on the movement and demand of the coin as far as I know.

I'm no professional trader, but between those 3 things that you said, the third one is the only part where I agree on it.

For the first one, so you are saying that I will focus more on crypto trading, and will not do anything outside of that, my profits will be constant? Are you sure about that? Do you mean constant is 100% win rate because if that's the case then I don't think that would be healthy for a trader to focus most of his time on trading. I mean we have other things to do outside trading as well. Focusing on trading might increase your chances of getting profit, but it will not guarantee you that you will get profits every time.

For the 2nd one, I'm trading as well (but not that much), and I didn't conduct any market research at all. Why would you conduct a market research if the only thing that I'm trading is Bitcoin, and some coins that are supported in futures trading in Binance. I mean do you need to do market research every time you make trades? I don't think so.

The 3rd one is the one that I will agree with one condition. If you know that you are profiting in trading, then that's the time that you will increase your capital. I mean why increase your capital if you are just a newbie in trading?

Now to answer the question of OP, this is just base on my experience, and coming from an average trader who are earning just enough to pay some bills here. How to maintain profitability in crypto trading? Just learn how to read charts. That's what I'm doing, and so far, I'm profitable with trading. I'm not an expert in crypto trading, and I'm only using 3-4 indicators whenever I'm trading, but it works FOR ME. Take note that what works for me might not work for anyone.

Probably I agree with the three ways you mentioned to maintain profitability in crypto trading. Decreasing waste and conducting market research are both important to ensure you don't miss out on any potential profits.

And of course, increasing your capital can help you buy more coins and maintain regular profits in the market.

So, I think it's also important to note that there are other factors that can affect profitability in crypto trading. For example, emotions can play a big role in decision making and can lead to impulsive trades that may not be profitable in the long run.

Important to have a solid trading plan and stick to it. Additionally, it's important to stay up to date on any news or announcements in the crypto world that could affect the market.

Just because you get stress because of two or three loses doesn't mean your strategy is not effective. I have learned a many strategies and I have two mentors. There are some people in my batch who are profitable already and there are not profitable as well, but they are using the same strategy. Do you think that those who are not profitable their strategy is not effective? I think it's not. For me, we have different execution in the market and our emotion will affect our execution that's why we don't have the same execution even though we have the same strategy.