Writing a Bitcoin Plan

In bitcoin trading there is no single method or formula that's used for trading the btcusd market successfully. The cryptocurrency market requires traders to learn and acquire the skill required to trade the btcusd market successfully. Bitcoin traders need to know how to analyze and interpret the btcusd market movements. Bitcoin traders then need to come up with a plan of how to come up with a way of combining this knowledge and the strategies they've learned so as to formulate their over-all trading method.

By coming up with an effective trading plan your chances of being success will improve greatly. A bitcoin plan will help you to effectively analyze the btcusd market and know when the best time to open a trade is and when it is best to close the trade.

Before starting to trade the btcusd you must be prepared with a plan. Just like in business where all successful businesses start with a business plan also successful traders must begin with a bitcoin trading plan.

Sections of a Bitcoin Plan

Bitcoin Chart

The first section of a btcusd plan will specify the instruments which one will be trading. Traders should specify the instruments which are best suited for their method.

Before deciding the most suitable trading instrument to trade a trader will have taken time to test their strategy on various charts on a practice after which they'll choose the financial instrument which produces most profitable results. The trader will then list this trading instrument on the trading plan as the financial instrument that they trade.

Chart Time-Frame

The trader will also have to specify the chart time frame they will be using to trade bitcoin with. For illustration a trader may find that the best chart timeframe for their system strategy is the 15 min chart time frame and thence they will specify their time frame as the 15 minute trading chart time=frame.

The time-frame that a bitcoin trader chooses will depend on which type of trader they are. For day traders who have a lot of time to watch the charts they can choose and select the 5 minutes or 15 minute trading chart timeframe and trade with these charts. For swing traders who do not have a lot of time to watch the btcusd market they can trade with the H1 chart time frame so that they can be able to follow the medium term trends that will last for a one or two days.

Bitcoin scalpers on the other hand can trade with the 1 min chart time frame and trade the short term market moves. These traders will make many trades during the day and just like day traders they will also have a lot of time during the day to watch cryptocurrency market moves.

BTCUSD ==22==CryptoCryptoCurrency System

This section will specify the bitcoin trading system which the trader will be using to trade the btcusd market. This section will list the trading rules that a trader will follow when opening a buy or sell bitcoin trade. It also will listing the rule that a btc usd trader will follow when closing their trade positions - e.g. it will note the tp order levels as well as stoploss order levels which a bitcoin trader will set after they have opened a trade.

Trader will write-down if they will be using an technical indicator based cryptocurrency system to generate bitcoin trading signals or the trader will write if they will be using support & resistance levels to open and close trades or any other technique that the trader will be using for trading. For example illustration a trader may specify that they will be using automated bitcoin trading systems & they will write-down the parameters of the automated cryptocurrency trading robots on this section.

Prior to writing the bitcoin trading system that a trader will be using, the BTCUSD trader will have back tested this cryptocurrency system on a practice account until the time that the cryptocurrency trading system is producing profitable trade positions on a consistent basis & after coming up with a profitable bitcoin system the trader then will write down the cryptocurrency system on this section of their plan.

Mindset

This section will specify the mindset that ==22==you'llyou--will be following when trading so that to ensure that you become successful when trading.

Discipline - This will list that you'll be disciplined enough to follow the system rules of your system and plan. Discipline will mean that ==22==you'llyou--will be patient enough to wait out for a trading signal from your bitcoin trading system before opening a trade. This section will specify that you'll only trade the trading signals which are derived & generated by your system and you'll not second-guess your system and open positions which aren't indicated by your system.

Trade Without Emotions - when it comes to trading the btcusd market you shouldn't let the emotions of fear and greediness control you when you're trading. You should always trade based on the rules of your trade plan. Avoid becoming greedy and wanting more profit from the same trade instead of closing the trade transaction at your takeprofit level.

BTCUSD Equity Management

A trader must specify their bitcoin trading money management ==22==guidelinesrulesguidelines/rules that they will use when trading. For example illustration a btc usd trader can specify that they will use a high risk:reward ratio which means they will place their takeprofit level at two times what they set their stop loss order level. This will make their bitcoin strategy more profitable in the long run because they stand to make more money from their winning trades and lose less money from their losing trade positions.

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