Swing Trading Cryptocurrency

One of the best ways that you can capitalize on moves across the crypto markets is with swing trading cryptocurrency. The trends and price movements in the cryptocurrency markets take time to develop and swing trading cryptocurrency is one of the best ways that you can maximize your returns in a shorter period of time. 

Rules of Trading

There are some rules, however. You want to be able to capitalize on these markets, but most of the traders out there get this wrong because they don’t have the right process or rules that will allow a consistent trading profit. Some of the rules that you should follow for successful swing trading cryptocurrency are as follows: 

  1. Work on limiting the swing trading cryptocurrency overnight risk. The crypto markets don’t stop while you sleep. The market continues to move and you can’t take any action at these times. Instead of avoiding sleep trying to keep up with the markets moving on, you should trade in smaller batches when you are swinging trading cryptocurrency. This will limit the risks overnight. Beware: don’t risk more than 1% of your portfolio per trade.  
  2. Always have a stop loss strategy. If you want to be prepared for your crypto going against you, then you need to have a stop loss strategy. This will help you to be a profitable swing trader, and it’ll ensure that you are the one to keep the profits.  
  3. Only trade what you can afford to lose. It’s a smart tip to know when you are going to swing trading cryptocurrency. You need to only trade what you are okay to lose. Betting the college fund you set up for the kids isn’t a good idea. You want to make the right decisions and that’s so much easier when you only bet what is safe. 
  4. Know your indicators and don’t overuse them. The best of the best only use a few indicators to make their trades. Price action is always the most important thing and indicators can add validity to your trade thesis. They cannot, however, but the reason that you put on or take off a trade.  
  5. Watch the trends. Bitcoin is the most popular cryptocurrency on the market so you need to watch the trends. You want to know what it’s doing because it’s the market leader and often, other cryptocurrencies will follow the trend of Bitcoin first. If you trade against the short term trends of Bitcoin, you’ll lower the trade playing out. 
  6. Always have a written plan. Before you trade anything, preplan it and write it all down. The best out there know the prices that they’re looking for, the prices they’ll take a profit from and the prices that they’ll stop to protect their capital, too. 
  7. Dont average out on a loser. Crypto markets are volatile and that’s not a shock. You want to make huge returns quickly, which means that if you are losing trades, don’t average down on them. The only time you should is if you’re planning to scale in and it’s a part of your earlier written plan.