Book Image

Zero to Hero in Cryptocurrency Trading

By : Bogdan Vaida
Book Image

Zero to Hero in Cryptocurrency Trading

By: Bogdan Vaida

Overview of this book

In today's fast-paced digital age, cryptocurrencies have emerged as a revolutionary financial asset class, capturing the attention of investors and traders worldwide. However, navigating the world of cryptocurrency trading can be overwhelming for beginners. Zero to Hero in Cryptocurrency Trading acts as a guiding light to navigate this complex realm. This comprehensive guide to cryptocurrency trading empowers you to go from a novice trader to a proficient investor by helping you implement your own trading strategy. As you progress, you’ll gain structured trading knowledge through hands-on examples and real-time scenarios, bolstered by trading psychology and money management techniques. You’ll be able to automate your manual trades with an algorithm that works even while you sleep. You’ll also benefit from interactive teaching methods, including screenshots, charts, and drawings to help decode market operations and craft your unique edge in the dynamic crypto world. As an added bonus, you’ll receive ready-to-use templates to identify useful indicators, test your strategy, and even maintain a trading journal. By the end of this book, you’ll be well-equipped to trade cryptocurrencies and automate manual trading to give you an edge in the markets.
Table of Contents (13 chapters)
9
Chapter 9: What’s Next?

Your trading plan

A trading plan means setting conditions for getting into and out of trades, establishing how much money to risk, and preparing a path with an expectation of profit.

Figure 6.4 – What is a trading plan?

Figure 6.4 – What is a trading plan?

You can base your trading plan on multiple factors and conditions; let’s see a few of them:

  • Timeframe (position trading, swing trading, day trading)
  • Market type (bull market, bear market, sideways market)
  • Entry strategy (trade a breakout or a parallel channel without leverage)
  • Exit condition (exit after two red candles or at channel top)
  • Position size (2% risk)
  • Expectations (weekly profitability > x% for day trading)
  • Analysis (going over all trades one week after they closed and checking whether there’s something to improve)

A trading plan can be a lot of things.

It can be a sentence such as “a swing trade in a bull market, entering with a 2% risk every time BTC drops...