Example of a successful long trade with target and stop set. Entry-point is the yellow oval. Finally, know your breakeven point; the price at which you can exit a trade without incurring any loss due to trading fees.
If you enter a trade only for the market to meander sideways, consider exiting at breakeven rather than wasting time and energy on monitoring a flat market.
Exercising discipline in regards stop-losses and targets is the best way to manage greed and fear. Placing stop loss and profit target orders immediately after entering each trade is a good habit to acquire. Adhering to this methodology, one good trade compensates for two bad ones. Therefore, selecting only trades which will potentially satisfy a 1: Of course, markets are seldom predictable. Their randomness means that consecutive losses should be anticipated and guarded against through proper position sizing.
Timeframes Define Bitcoin Traders The various types of Bitcoin traders are primarily distinguished by the timeframes they employ. Bitcoin scalpers usually trade on a 5 minute or lower timeframe, sometimes following tick charts which record every single trade without reference to time.
Scalpers seek to profit from fleeting imbalances between buyers and sellers. They may make hundreds of trades over the course of a single day. For obvious reasons, such traders are particularly common on Bitcoin exchanges which offer zero or minimal trading fees. Those who seek to profit from larger Bitcoin price moves during the course of their session are known as day-traders. This term originates from traditional stock market traders who refrain from holding positions overnight.
Nevertheless, it fits for Bitcoin traders who usually follow half hour, hourly or 2 hour charts. Swing traders or trend traders are those who maintain positions for days, weeks or even months.
Such Bitcoin traders attempt to capitalise on large swings within a range-bound market or major trends. They generally follow daily charts, with occasional reference to weekly charts for greater context. They may consult lower timeframes to study price action at important levels or to achieve greater precision on exits and entries.
Choose your timeframe depending on your desired level of market activity. Scalpers and scalpers follow every trade and commonly conduct multiple trades per day, whereas swing or trend traders check price only occasionally and rarely execute market actions.