WINING IN CRYPTO TRADING 2019: When to Rightly Use a Cryptocurrency Trading Bot Vs When Not to Use?
If you haven’t heard of the trending trading news, this is it. The failure rate of traders is extremely high. In fact, in a ratio of 5:1, you can boldly measure 4 failures.
Nowadays, people are attending some crypto trading courses and without perfection, they start trading and thereby facing huge losses. For sure, it’s good to attend crypto trading courses like this 7-day free course.
For me, I have made series of mistakes that have cost me more than 70% of my total investments that took me time to build. The cause was simple. I didn’t map out a plan and stick to it. Even when my losses was at 50%, I still didn’t care to stick to it because fast fingers means trade and win else they will leave you behind — no thanks to FOMO.
Needless to say, we all expect the same thing, so, most of us enter into the market with expectations that is higher than Mount Kilimanjaro; expectation of huge profits, but it’s not at all easy in day trading! Due to lack of knowledge, most of the people end up with huge losses!
So, to kick this up, I will outline the first 5+5 mistakes most traders make.
5+5 Mistakes most Traders make.
♣ Not using a stop-loss: Otherwise known as, using a mental stop-loss or keeping the losers going in hopes they will turn around.
♣ Following other traders: No one better than you knows what’s better for you. Others’ opinions are biased and may likely contain errors that you could have otherwise figured out.
♣ Not sticking to a specific time horizon: You trade on a daily chart and you change your mind once you see something not right on a weekly or hourly chart.
♣ Using too much leverage: In hopes of big profits, brokers will tempt you to use excessive leverage. It goes both ways, you may gain big but you may also lose big.
♣ Underestimating the market: Nothing is easy, you will not get rich fast nor easily. Do your homework!
Advanced Measures:
♣ Poor risk management
♣ Not maintaining trading discipline
♣ No plan to exit losing trades
♣ No trading plan
♣ Having unrealistic expectations.
I know it is simple to read and nod in agreement that you can stick to them after all they are nothing. But I tell you the truth, the above 10 mistakes and many more outlined would have saved me if I had the tenacity to stand my ground. Thanks to Akash Shah & Sofien Kaabar.
The truth is,
To make side income in crypto trading, all you need to do is make 4 strategic choices and you are there — no quick fix.
#1.Using the right crypto trading place, #2. When to use a bot, #3. The Right Bot to use, and #4. Finding the right trading signals to use.
Without further ado, let’s see when to rightly use a cryptocurrency trading bot and when not to.
WINING IN CRYPTO TRADING 2019
#1. USING THE RIGHT CRYPTO TRADING PLACE
As I was saying, the exchange I use and which I trade with is Binance.com. Without dispute, Binance is flexible enough (for beginners & advanced users), low fees and most of the altcoins are available for trading.
If you want to try out Binance, register at Binance.com. But if you don’t trust it, feel free to use any other crypto exchange you think will give you the result you desire (Bittrex, Bitfinex and etc.).
Should you want more of Binance, they now offer buying of Cryptocurrencies using Credit Card. And the other sister exchange offers using Fiat. (I have made guiding articles on them)
Note: the type of crypto exchange can affect your success here.
By the way, do not hold more crypto on an online wallet. Hope you can still remember what happened to the Canadian crypto exchange just recently. Use this Bluetooth Hackers Wallet.
#2. WHEN TO USE A BOT
There are a lot of noisy crypto trading bots out there, but a feel of a free one with a trial can make all the difference.
Before you decide when to or not use an automated tool, you need to weigh yourself using the right balance. How?
Trading Test Questions
Do you know crypto trading technical analysis?
You: Yes!
If yes, use a bot.
You: No
Do not use a Bot. Go with a crypto trading signals.
No need for much grammar because that is how simple it is.
If you’re not familiar with the technical analysis you can start with the simplest guides such as the science of stop-Loss and trading for the first time.
Working with Technical Analysis
TA is not just all about using RSI, RSI is just a way of hovering on the surface of the market. There are other TAs that require deep analytics with time.
The basic technical analysis may require you to adjust your strategies depending on the market conditions at a certain time.
With all said and done, the condition for you to use a bot is that you know how to use Technical Analysis. That way, you can simply back-test your trades at a favorable point thereby triggering it at the top market helve point you want.
So,
TA trader + Bot = Success
TA trader + Signal = Success
Working as a Newbie — first Time Trader
If you can control your emotions and just click the buy and sell button then, you are good to go with signals.
Personally, when I started, I was controlled by emotions of making $3,000 overnight. That didn’t work. What will fail you is not sticking to the signals you can gather.
For a newbie, all you need is to get credible signals and the rest is just clicking BUY & SELL for profits.
So,
A Newbie + Signal Callings = Success
A Newbie + Bot = Failure
#3. THE RIGHT AUTOMATION TOOL TO USE
I won’t say much about the bot to use because we have analyzed, reviewed and detailed all that is to know about them (Livetradervs CryptoHopper).
So, if you are on a low budget, know how to go about Technical Analysis, then you can start a free trial with LiveTrader.com
Get started with Livetrader.com
Option B
Like Livetrader that offers a free trial version, Cryptohopper.com. offers a onetime payment if you decide to use the bot.
Get Started with Cryptohopper.com.
#4. FINDING THE RIGHT SIGNALS
There are so many vague signals rooms’ out there that you can simply jump in and test. However, some of them will start beating you out with access fee on the high side $50 or more.
Warning! Be careful with free signals as they can be pump and dump signals just meant to offload their bags onto you.
I once was in a free signal group. The announcement was that they will give out a coin of the day. Patiently I was waiting. Only to see a signal dropped. As a newbie that followed due diligence, I bought and held the recommended coin.
Fast forward to sometimes nothing happened to the coin and I was hanged half-way. Pretending as if nothing happened, the admin(s) never said nothing about the coin and there you had it, another signal was dropped after some time.
I had no option than to sell at a loss. I mean, the coin was like a stagnant water.
There, I knew that some signal rooms can give out pump and dump signals just meant to offload their bags on your innocence. So, beware!
FINAL THOUGHTS
Just as Triggers (using Bot) can be used to monitor certain conditions and to take action depending on the conditions, using a trading signal can do same for you.
As a newbie, using a Bot can add more pains until you spend the time to learn how native technical trading works.
And as a person with a TA insight, you can use a Bot to compliment your trading for success by automation.
All right. All the best. Let me know what you think if you have observations.
