Tips for Building a Trading Plan in Crypto Assets

Digiasset News Feb 09, 2023

Like a business that needs planning, it is equally important to prepare a trading plan in trading crypto assets. With a trading plan, traders can be more objective in analyzing the market, so they already have a plan at what price they will enter the market and at what price they will exit (both when the price is as predicted or not as predicted). Being objective in analyzing the market requires discipline to get consistent profitable results in the long term, this also helps traders not to always force themselves to enter the market. For example, a trader has a trading plan, will only enter when the market is uptrend, and risks a maximum of 10% of the balance. So the trader must be disciplined with this, that is, only enter the market when the trend is up. And if it's not in an uptrend, traders don't need to enter the market. Tips for creating a Trading Plan:

  1. Determine what strategy to use to enter the market, for example looking for a buy signal when the price is reversing using a reversal pattern indication.
  2. Money Management means that you have prepared a risk in every trade in an asset, for example you only risk 15% in each entry in an asset. This also applies when you are going to do a Taking Profit (TP), what percentage do you plan to profit from in the trade
  3. Make a trading journal, this is a record which can evaluate the trading performance that you are doing.

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