I tried trading Bitcoin a couple of years ago but quit after I lost $300. What advice do you have for me if I decide to start trading again? Thank you!
A reply of mine that someone asked similar question like this;
I think you need to dig in some online resources and if you search on reddit posts about I am sure you will find plenty of nice sources.
The next step can be to start doing some backtests and papertrades to see how much you are good at putting into practice what you have learned based on historical data and live data. The learning cycle never ends btw for anybody. So you need to keep the learning cycle on.
The next step could after backtesting and papertrades for months, you can actually start real trading. But the most crucial about this will be START SMALL just have the experience and learn how things can be when trading with real money after your preparations.
Overall crucial points in my opinion:
- Risk&Money management - something you need to learn very well
- Always have a well-designed plan and stick to that till your trades are done - which can be called a trading discipline.
- We people are emotional beings so we can easily lose ourselves to our emotions such as being greedy, panic, etc. This will let most traders ended up with loss. You should definitely have a good understanding of what does it mean emotional disadvantage in trading.(You can look for as behavioral finance in trading)
- Backtest and paper trades are significant especially when you starting for the first time. It lets you understand what are your weaknesses and strengths in trading, how good your strategy performs compared past events in the market, and on live data as well. There are some good platforms that offer such tools in a very nice way.
- Look for ways to increase your trading skills such as trading bots. And you should try it by yourself rather than listening to other people's opinions you can take their opinion as a reference. But you will be the one who will decide what is works for you the best what is not.
- Last one could be, do your own research. Dont listen or other people's advice, instead of listening their advice with reasoning, strengthen your perspective and researching your own. There should be a solid answer when you ask yourselves "why" when doing something.
Well those are stuffs that pops up in my head. There are more stuff to mention tho, I believe there will other people who would like to share their valuable information. And if your search your question on the reddit I am sure you find a lot of posts and comments similar to this.