1. Build a trading plan
You’ve chosen a trading strategy, but if you’re new to the markets you might want to consider a trading plan as well. A trading plan can help you make objective decisions even when the stake are high, so that you don’t leave trades open too long – or close them too early.
Here are a few tips for creating a plan:
- Set out what you want to achieve from your trading, broken down into short and long-term goals
- Decide your acceptable risk from each trade, as well as how much you are willing to risk overall
- Pick a risk-reward ratio, so you know how much potential profit you need to justify your potential loss
- Choose which markets you want to trade. Do you want to start with just bitcoin, or try a few more?