Tips on How to Avoid Losing Money When Trading Bitcoin

With the btcusd market gaining more popularity among retail traders and investors & beginners need to learn how to correctly setup their bitcoin trading investment activity so as to avoid losing money when trading Bitcoin.

The following tips should guide beginners on what to do before starting to trade bitcoin online and before they invest their money in the btcusd market.

Take Time to Learn Bitcoin Before Investing in Bitcoin

The first thing which every trader should do is to take time & learn about the online market before deciding to invest their money in this online market. For examples, on this website there a total of 100 learn bitcoin lessons that traders should learn so that to understand grasp all the basic concepts as well as advanced concepts that will explain to them what bitcoin trading is all about and the various strategies used to trade bitcoin as well as tutorials that explain to traders how to manage their account balance. Trader also learn about leverage, margin & how these two are used in trading & how bitcoin leverage can increase profits as well losses & also what margin is and how this margin is calculated & why traders need to maintain enough capital in their trading account when trading on margin using bitcoin leverage provided by their broker.

After learning all the bitcoin tutorials, traders should create a bitcoin plan that will set the rules which they will follow when trading bitcoin. This plan will summarize all what they have learnt and will be used as a trading tutorial that a trader will use when trading the online bitcoin market.

Practice Bitcoin on a Practice Trading Account

Next thing that a btc usd trader should do before they invest their money in online market is to practice what they have learned & test their bitcoin plan on practice account. The practice practice account is where a trader can learn how to place trades and trade the btcusd market but only that they will be trading on a practice account with virtual funds.

The demo trade account is similar to live account and trading environment is same as when a bitcoin trader is trading the real market using real money, only difference is that the money being traded with on a demo account is virtual money & there is no risk of losing money when trading on a demo account.

The bitcoin platforms of most brokers will provide the option of opening a practice account, a btc/usd trader can use this demo account to learn about the bitcoin crypto currency platform. The trader will also use this practice account to learn how to trade bitcoin using different orders types provided and learn how to close trade transactions.

The trader can also test any strategy or any automated EAs before they decide if their strategy is profitable enough to start trading with it in the btcusd market.

Use a Bitcoin Plan & Stick to the Bitcoin Plan

Traders should always use the bitcoin plan they come up with to transact the btcusd market. The strategy that a trader chooses should be well written down in this bitcoin plan and the trader should always follow the rules of this bitcoin plan when deciding when to open and close trade transactions.

If as a trader your chosen strategy is to use automated strategies & Expert Advisors then these automated trade strategy should be specified in your trading plan. Whatever trading system you decide to use as a bitcoin trader, write it in your bitcoin plan and stick to trading with that strategy.

Traders should also avoid emotions of fear & greed when trading in the btcusd market. The bitcoin plan will help trader plan their trades and this way traders will not make trades based on their emotions. A bitcoin plan will help a trader set clear goals when trading & at same time will help traders to stay organized when trading and thus ensuring bitcoin traders become more successful when trading in the btcusd market.

Keep a Bitcoin Journal To Track Your Trading Results

As a trader always keep a journal and writedown all trades that you open in this journal, write down why you opened each trade, when you closed the trade and also the amount of profit or loss generated from that trade transaction.

After a while you can then review the trades you've made try & look at why the losing trades made a loss & why the winning trades were successful & after which you can then try & do more of what makes you successful & less of what is making you to open losing trades and that way keep on improving on your trading strategy.

As a trader if you don't maintain a trading journal you might continue making same mistakes over & over again without even knowing it, but if you keep a journal and you keep reviewing this journal from time to time then you give yourself a chance to identify these mistakes you make when trading from reviewing your trading journal.

Choose a Reputable Broker Before Open your Bitcoin Account

Before you open an account with any broker do some research & find a reliable broker that you can do business with.

Choosing a good broker will give you a chance at making profits from your trading activity. Choosing a broker that's regulated is the best advice that you can get. Regulated brokers follow regulation rules set by their regulators and this means that these btcusd brokers are the best to choose from when opening a btcusd account as they are most reliable because they are licensed & regulated which means that they are legit.

Open Account When You Have Enough Trading Capital To trade With

Bitcoin trade just like any other business requires that traders open a trading account when they have a good enough amount of capital to trade with.

Bitcoin trading requires that a trader starts trading with at least $1,000 if they will be micro lots and a minimum account balance of $100,000 if they will be standard lots. If as a trader you do not have the required capital it's best to save until the time you'll reach the amount of money that will help you to open a well capitalized trading account. This will increase your chances of becoming success in trading bitcoin in the btcusd market.

Use Proper Bitcoin Money Management Rules To Protect Your Account

As a trader you will need to protect you trade account balance when trading if you want to trade bitcoin profitably for a long time. Best way to protect your trading account is to learn about the proper bitcoin money management guidelines & follow these rules when trading the btcusd market.

Bitcoin money management rules will ensure that you will protect the money in your account & that you'll have a chance of trading successful. To be profitable and trading successfully in the long run a trader has to implement proper bitcoin money management rules when trading. The bitcoin money management rules that one will follow should be specified within their bitcoin plan.

Bitcoin trading money management guidelines will help a trader to minimize their trading losses & essential help the trader learn how to protect the profits that they make in the btcusd market using different principles specified by the bitcoin equity management rules. Traders can learn about bitcoin equity management from the learn bitcoin courses section of this web site.

Bitcoin trading money management will also help trader know what amount of leverage is best to use when opening trades. Bitcoin Leverage gives a trader a good opportunity to earn profits from the borrowed capital. Bitcoin trade is very popular because of the fact that bitcoin traders using bitcoin leverage can use little of their investment capital and borrow the rest of the money to make a trade. By using bitcoin money management rules traders will learn how to use leverage & know the best bitcoin leverage to use when trading based on account balance they have in their trading account.

Because bitcoin leverage increases both the profits as well as losses, traders must create rules on how best to use this bitcoin leverage when trading. By learning bitcoin money management rules used in Bitcoin traders will know how to decide what amount is best to use when bitcoin trading using their bitcoin strategy.

Summary

Traders should try & use the above approach so as to avoid losing money when trading bitcoin. Following the above strategies trader can improve their chance of being more successful & profitable when trading the btcusd market.

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Tips on How to Avoid Losing Money When Trading Bitcoin