Gunbot Basic Crypto Trading Plan
How can Gunbot Help You with Your Crypto Trading Plan?
This is a basic Gunbot crypto trading guide, but it is important to stick to the basics if you want to be successful trading in general and even more so with Gunbot or any Automated Trading Bot.
If you ask any successful crypto trader about how they maintain a consistent winning strategy, you’ll find one thing in common with all of them.
All of them have good, workable trading plans that they’re comfortable with, and most of them will tell you to stick to the plan.
When you plan to go into the cryptocurrency market, you could do well if you emulate these success stories and follow the rules.
Let’s be clear, though. Trading plans are more than just rules for trading when buying and selling all of those coins on the open market.
Those rules are trading strategies and are a subset of a trading plan. Let me explain to you what is essentially a basic trading plan.
Crypto Trading Plan Goal
Every trading plan starts with a goal, but this goal has to be specific.
Some trading plans have unclear goals like: “I want a Lambo soon,” but you have to realize that a plan with such broad goals is doomed to fail.
Realistic, measurable goals are what you find in good trading plans.
What do I mean by realistic and measurable?
First, the goal is reachable and possible for the trader and defines your success level.
Experienced traders usually define these goals by setting a profit/loss margin for a particular period.
Believe me, you will know if you are successful if you have a clear profit target at the end of the week, and even if you don’t hit it, you can see how much you have to go, and you’ll strive for it.
Define Your Market
Another part of a trading plan is having a definite market or field to target.
This gets even more specific with particular coins chosen for how they will help you achieve your goal.
A good trader chooses an area that he is interested in or has easy access to information about it.
This is because a crypto market is a volatile place, and the only way to make sure you don’t get any nasty surprises is to always be on top of the latest news, developments, or trends that may affect the price of the alt-coins.
I’m here to tell you that even with a Crypto Trading bot like Gunbot, you still have to check the exchange and be on top of any info that may be crucial to you.
For example, in alt-coins, it is good to check if the volume is high enough to provide decent liquidity for the coin.
In any case, don’t go looking for a magic strategy or indicator, head over TradingView, do some backtesting with a few indicators and the pair you would like to trade and when you’re satisfied with the results, stick to that plan.
Most traders fail because they keep changing the rules and not sticking to them. I’ve seen beginners try one strategy for one day and looking for a new one the next day, that won’t work.
Check Out Gunbot for Your Crypto Trading Plan
Automate your cryptocurrency trading plan.
Finally, your entry and exit strategies usually reflect your personality. If you are an aggressive trader, probably your risk vs. reward margins are considerably higher than that of a more conservative trader.
Going against your instinct is hard to accomplish.
That’s why it is recommended that you customize your strategy to match your character and trading style.
Any conflict with your gut feeling and your trading strategy will create confusion and indecision, finally leading to failure.
With the high speed of the rise and fall of crypto coins on the market, that moment of uneasiness and indecision may be the difference between a few bitcoins of profit or a few bitcoins of loss.
How to Build A Master Crypto Trading Plan.
In the world of trading, you have only two choices, follow a proper plan or fail. Any successful trader who makes consistent money in the market will tell you that you won’t succeed with your trading venture without a plan.
If you have already prepared a good trading plan, you are off to a good start for success. Keep reading and discover the 5 steps involved in creating a successful crypto trading plan.
Having a plan doesn’t guarantee you the success roadmap; however, it does get over many hurdles. If your plan comes with shortcomings or lacks adequate preparation, it will take you a while to start seeing the real success from trading.
When you have a plan available on the table, it gives you something to work on or modify. Of course, documenting your trading process won’t stop you from making mistakes, but it will surely keep you from repeating the same mistakes.
How to Avoid a Trading Disaster
If you want to have success trading regularly, you must treat trading as a regular business. Successful businesses always have their plan ready. Some people boast about following the seat-of-the-pants theory, but most don’t know how they got there.
Reading a few trading books, learning few things about the trading market, and opening a brokerage account could only lead you to the path of failure.
The trading market is a dynamic one as it has the potential to pause or reverse. When you know either will occur, you will be able to act in the right manner. This is exactly where having a concrete plan is important.
5 Ways to Make A Perfect Crypto Trading Plan
- Skills assessment: This is the stage where you determine if you have examined your system, have confidence that it will work, and are ready to start trading.
- Mental Preparation: Trading is a complete mental game. It requires you to be alert and attentive to the trading tasks before you. You don’t want to risk a big loss when you are not ready to face the market emotionally or mentally.
- Set Your Risk Level: Before you finally start trading, you should determine how much of your portfolio you want to risk. Risk between 0.1% to 1.5% for every position is safe, but anything above could strike a serious disaster. You should stick to the same risk level if you want to continue trading on another day.
- Set Your Trading Goals: Part of your trading plan should include setting a practical profit goal and risk-to-reward ratios. What is your expectation in terms of risk and rewards? Some traders do not even accept the trade unless the profit can be at least 3 times higher than the risk.
- Do Your Homework Properly: You cannot expect to have a successful trading venture out of nowhere. Therefore, before you start actively trading, you should know what is going around the world and how are the crypto markets moving.
There you go, a simple guide on How Gunbot can Help You with Your Crypto Trading Plan.
Remember to choose your plan, back-test it, and stick to it long enough to see the profits.
If you’re excited about crypto trading, Gunbot can help you with your gains. You need to choose your strategy and follow it well.
A good crypto trading plan always succeeds, after all.