Trade Bitcoin Trading

Bitcoin Trade Money Management Styles and Methods in BTCUSD Trading

The best way to practice successful bitcoin trading equity management in Bitcoin is for an investor to keep losses lower than the profits they make. This is called risk to reward ratio.

Bitcoin Crypto Currency Account Management Techniques

This technique is used to increase the profitability of an investment strategy by trading only when you've the potential to make more than 3 times more than what you're risking.

If you invest using a high risk reward ratio of 3:1 or more, you significantly increase your chances of becoming profitable in the long-term. The BTCUSD Crypto Currency Chart below shows you how:

Crypto Account Management - Equity Management Rules Examples Explained - Creating System to Trade Bitcoin With

In the first bitcoin crypto currency examples, you can see that even if you only won 50 % of your bitcoin trade transactions in your cryptocurrency account, you'd still make a profit of $10,000 dollars.

Even if your win rate went lower to about 30% you would still end up profitable - Bitcoin Account Management Principle - Bitcoin Trading Equity Management.

Just remember that whenever you have a good risk to reward ratio, your chances of being profitable as a trader are much greater even if you have a lower win percentage for your bitcoin strategy.

Never use a risk to reward ratio where you can lose more pips one bitcoin trade than you plan to make. It doesn't make sense to risk $1,000 dollars in order to make only $100.

Because you've to win 10 times to make the $1,000 dollars back. If you ONLY lose once you have to give back all your bitcoin profits.

This type of investment strategy makes no sense & you'll lose on the long term.

Bitcoin Crypto Account Management Techniques

The percent% risk technique is a technique where you risk the same percent of your trading equity balance per transaction - Bitcoin Account Management Methods.

Percent risk based method says that there will be a certain percentage of your bitcoin trading equity balance that's at risk per trade transaction. To calculate the percent risk per each bitcoin transaction, you need to know 2 things, the percentage risk that you've chosen and lot size of an open cryptocurrency order so as to calculate where to put the stop loss cryptocurrency order. Since the percent% is known, we shall use it to calculate the lot size of the bitcoin trading order to be opened in the btcusd market, this is what is referred to as position size.

Example

If you have an account balance of $50,000 in your cryptocurrency trading account & risk percent is 2 %

Then 2 % is equal to $1,000

Other factors to consider include:

  • Maximum Number of Open BTCUSD Crypto Trade Positions

A final point to consider is the maximum number of open bitcoin trade positions that is the maximum number of cryptocurrency trades that you want to be in at any one time. This is another factor to decide when managing cryptocurrency trading equity.

If for example, you chose a 2%, you might also say chose to be in a maximum of 5 bitcoin trade positions at any given time. If you open 4 trade positions and all 4 of those positions close at a loss on the same day, then you would have an 8% decrease in your trading account balances that day.

  • Invest Sufficient Capital

One of the worst mistakes that investors can make in bitcoin trading is attempting to open a bitcoin trading account without sufficient equity.

The btcusd crypto trader with limited capital will be a worried trader, always looking to minimize losses beyond the point of realistic trading, but will also be often taken out of the bitcoin trade transactions before realizing any success out of their bitcoin strategy.

  • Exercise Discipline

Discipline is the most important thing which a bitcoin trader can master to become profitable. Discipline is the ability to plan your work and work your plan.

It's the ability to give a bitcoin trade the time to develop without hastily taking yourself out of the btcusd trading market simply because you are uncomfortable with risk. Discipline is also the ability to continue to adhere to your btcusd trading plan even after you've suffered losses. Do your best to cultivate the level of discipline that is needed so as to be profitable.

Managing Trading Account Capital Basics

Bitcoin trading equity management, is the foundation of any bitcoin system as it helps investors to improve their chances to get profit trading on the btcusd trading market. It is especially important when transacting in the bitcoin trading leveraged cryptocurrency market, which's considered to probably be one of the more liquid financial markets but at same time also one of the riskiest.

If you want to invest successfully in the btcusd trading market you should realize that it is very important to have an effective bitcoin trading strategy of bitcoin trading money management because you will be using bitcoin trading leverage to open your orders - Bitcoin Account Management Basics.

The variation between average profits & losses should be strictly calculated, the profit on average should be greater than the losses on average when trading, otherwise btcusd crypto trading will not yield any profits. In this case an investor has to formulate their own bitcoin account management rules, success of each person depends on their own individual character traits. Hence, every trader makes his own bitcoin trading strategy & deveop their own bitcoin money management guidelines based on the above guidelines.

When you're placing your orders put your stop loss cryptocurrency orders in order to avoid huge losses. Stoploss orders also can be used to lock in profit.

Consider the chance of getting profit against chance to get loss as 3:1 - this risk to reward ratio should be favorable more on the profit side.

Considering these bitcoin trading rules and guidelines, you can use them to improve profitability of your bitcoin strategy & try to create your own bitcoin strategy that will possibly give you good profits when trading with it.

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