Tips on How to Avoid Losing Money When Trading Bitcoin

With the btcusd market gaining more popularity among retail traders & traders & beginner traders need to learn how to correctly setup their bitcoin trading investment activity so as to avoid losing money when trading Bitcoin.

The following tips should guide beginners on what to do before starting to trade bitcoin online and before they invest their money in the btcusd market.

Take Time to Learn Bitcoin Before Investing in Bitcoin

The first thing which every trader should do is to take time & learn about the online market before deciding to invest their money in this online market. For examples, on this website there a total of 100 learn bitcoin lessons that traders should learn so that to understand grasp all the basic concepts as well as advanced concepts that will explain to them what bitcoin trading is all about & the various strategies used to trade bitcoin & also guides that explain to traders how to manage their account balance. Trader also learn about leverage, margin and how these 2 are used on trading & how bitcoin leverage can increase profits as well losses & also what margin is and how this margin is calculated & why traders need to maintain enough capital in their trading account when trading on margin using bitcoin leverage provided by their broker.

After learning all the bitcoin tutorials, traders should create a bitcoin plan that will set the trading rules which they will follow when trading bitcoin. This plan will summarize all what they have learned and will be used as a tutorial that one will use when trading the online btcusd market.

Practice Bitcoin on a Practice Trading Account

Next thing that a btc usd trader should do before they invest their money in online market is to practice what they have learned & test their bitcoin plan on practice account. The practice demo account is where a trader can learn how to place trade transactions and trade the btcusd market but only that they will be trading on a practice account with virtual funds.

The demo trade account is similar to live account and trading environment is same as when a bitcoin trader is trading and transacting the real market using real funds, only difference is that the money being traded with on a demo account is virtual money & there is no risk of losing money when trading on a demo account.

The bitcoin platforms of most brokers will provide the option of opening a practice account, a btc/usd trader can use this demo account to learn about the bitcoin cryptocurrency platform. The trader will also use this practice account to learn how to trade bitcoin using different orders types provided and learn how to close-out trade transactions.

The trader can also test any strategy or any automated EAs before they decide if their strategy is profitable enough to start trading with it in the bitcoin market.

Use a Bitcoin Plan and Stick to the Bitcoin Plan

Traders should always use the bitcoin plan they come up with to transact the bitcoin market. The strategy that a trader chooses should be well written down in this bitcoin plan and the trader should always follow the trade rules of this bitcoin plan when deciding when to open and close trade positions.

If as a trader your chosen strategy is to use automated strategies & Expert Advisors then these automated strategy should be specified on your trading plan. Whatever system you decide to use as a trader, write it in your bitcoin plan and stick to trading with that strategy.

Traders should also avoid emotions of fear and greediness when trading in the bitcoin market. The bitcoin plan will help trader plan their trade transactions and this way traders won't make trade transactions based on their emotions. A btcusd plan will help one set clear goals when trading & at same time will help the online traders to stay organized when trading and thus ensuring bitcoin traders become more successful when trading in the btcusd market.

Keep a Bitcoin Journal To Track Your Trading Results

As a trader always keep a journal and write-down all trade transactions that you open in this journal, write down why you opened each trade, when you closed the trade & also the amount of profit or loss generated from that trade position.

After a while you as a bitcoin trader can then review the trades you've made try & look at why the losing trades made a loss & why the winning trades were successful & after which you as a trader can then try & do more of what makes you successful & less of what is making you to open losing trades and that way keep on improving on your trading strategy.

As a trader if you don't maintain a trading journal you might continue making same mistakes over & over again without even knowing it, but if you keep a journal and you keep reviewing this journal from now and again that way then you give yourself the chance to identify these mistakes you make when trading from reviewing your trading journal.

Select a Reputable Broker Before Open your Bitcoin Account

Before you open an account with any broker do some research & find a reliable broker who you as a trader can do business with.

Choosing/Selecting a good broker gives you a chance at earning and making profits from your activity. Selecting a broker that is regulated is the best advice that you as a BTCUSD trader can get. Regulated brokers follow regulation rules set by their regulators and this means that these btcusd brokers are the best to choose from when opening a btcusd account as they are most reliable because they are licensed & regulated which means that they are legit.

Open Account When You Have Enough Trading Capital To trade With

Bitcoin trade just like in any other biz requires that the online traders open a trading account when they've got a good enough amount of capital to trade with.

Bitcoin trading requires that a trader starts trading with at least $1,000 if they will be micro lots and a minimum account balance of $100,000 if they will be standard lots. If as a trader you don't have the required capital it's best to save until the time you will reach the amount of money that will help you as a trader to open a well capitalized account. This will increase your chances of becoming success in trading in the bitcoin market.

Use Proper Bitcoin Money Management Principles To Protect Your Account

As a trader you will need to protect your trade account balance when trading if you want to trade bitcoin profitably for a long time. Best way to protect your trading account is to learn about the proper bitcoin money management rules & follow these rules when trading the bitcoin market.

Bitcoin money management guidelines will ensure that you will protect the money on your account & that you will have a chance of trading successful. To be profitable and trading successfully in the long run a trader has to implement proper bitcoin money management rules when trading. The bitcoin money management rules that one will follow should be specified within their bitcoin plan.

Bitcoin trading money management guidelines will help a trader to minimize their trading losses & essential help the trader learn how to protect the profits that they make in the btcusd market using different principles specified by the bitcoin equity management rules. Traders can learn about bitcoin equity management from the learn bitcoin courses section of this web site.

Bitcoin trading money management will also help trader know what amount of leverage is best to use when opening trades. Bitcoin Leverage gives a trader a good opportunity to earn profits from the borrowed capital. Bitcoin trade is very popular because of the fact that bitcoin traders using bitcoin leverage can use little of their investment capital and borrow the rest of the money to make a trade. By using btcusd money management rules traders will learn how to use leverage & know the best bitcoin leverage to use when trading based on account balance they have in their trading account.

Because bitcoin leverage increases both the profits & also losses, traders must create rules on how best to use this bitcoin leverage when trading. By learning bitcoin money management rules used in traders will know how to decide what amount is best to use when trading using their bitcoin strategy.

Summary

Traders should try and use the above approach so as to avoid losing money when trading bitcoin. Following the above strategies trader can improve their chance of being more successful and profitable when trading the btcusd market.

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Tips on How to Avoid Losing Money When Trading Bitcoin