Crypto day trading is profitable only when the trader knows the right time to trade, choosing the right cryptocurrencies. Otherwise, instead of being able to make money instantly, the trader might indulge in recurrent losses. So, if you don’t have the right cryptocurrency day trading strategy, then you won’t be able to trade judiciously. Once you are aware of how to day trade cryptocurrencies and how crypto day trading works, you are good to go. For any cryptocurrency related information, with their current shifts, and the trading volume in the 24 hours, you can log onto www.coinswitch.co.
You shouldn’t juggle multiple commodities or stocks, it might distract you. Instead of that, you must focus on a single chart. This might prevent you from making any kind of trading mistakes out of confusion and dilemma. Instead of leaning on many strategies, try and focus on a single strategy. After that apply that strategy to a single trading chart. You should improvise on your trading expertise to get the best out of it.
The cryptocurrency market is very volatile, and there are very frequent changes to the market. You must be adaptive to the change and not be resistant. So, on short notice, one must be flexible enough to adapt and that would help you to reevaluate or revalidate before going ahead with the particular coin.This is one of the greatest cryptocurrency day trading tips.
Perry Kaufman wrote a book on day trading and recommended on watching the market for 30 minutes by using a 5-min chart.After that, you can draw a line on the resistance level and even a line for support level. The difference between the resistance level,i.e, highest point, and the support level, i.e, the lowest level is the range. After this, you can decide on the trading. This is one of the most important crypto day trading strategies.
You need to make sure that you are aware of the market movements, the traders’ expectations, and pricing mechanisms. Before the event, you have to place a trade shortly and close it once when the market has priced after a new situation has arisen. If it’s a major surprise the move will go on for longer and would be larger, maybe even a few days. These kinds of events give the most opportunity for profits.
You have to find which markets are moving together and which are moving opposite or inversely. For instance, if petroleum is charged in dollars, it means whenever the price of the dollar goes down, the price of petroleum would increase. But this kind of correlations may not last all the time and that’s the time for the hedge trades to instigate. You can buy an asset when the correlation moves away from the mean.
Penny stocks like the ones whose value is below 1 USD, made the traders lose money over the years. The penny stock promoters pump the worthless companies and the moves from some of the dumps might prove useful and profitable for the day traders. Some of the marketing companies push the ultra-cheap stocks couple of percents upwards, which enable the promoters to make more money. This is one of the most important intraday trading strategies, too.
Don’t let your emotions come in the way of money-making. You need to set daily goals before the market starts to move. Day trading is about consistency, which means you need to focus on getting a steady income, not a big income. So, just follow the charts and come to a trading decision. Don’t rely on your guts or instincts while trading as that is risky.
You need to pick the coins which are highly volatile and the most liquid coins in the chart. So, don’t only follow the top cryptocurrencies, but try and follow the ones which are not so popular, but is high on liquidity and volatility. We already have a guide on the top cryptos for day trading where crypto day trading explained. You can go here for any further details.
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