Coming Up with a Simple Strategy

For any trader wanting to be profitable in the long term bitcoin trading the best way to do this is to come up with a simple bitcoin strategy to follow when trading the btcusd market. A simple bitcoin strategy will have simple rules that will be easier to follow when the online bitcoin market.

Many bitcoin traders will use complex bitcoin systems that will have many bitcoin rules that are hard to follow when market & at some point these traders realize that these complicated bitcoin systems and techniques are not the best when it comes to trading with them in the btcusd market because these systems have complicated rules that are hard to follow when trading the fast moving market of trading.

Many beginner traders try to come up with complicated bitcoin systems that use many different indicators to analyze the btcusd market. Instead of using 2 or three indicators to come up with their indicator based technique traders will use five or more indicators which make their system very complicated. Generating signals will mean waiting for the five indicators to give the same signal & sometimes because there are too many indicators some trading indicator may give opposite signals at the same time henceforth confusing the trader even more on what direction of trade they should take when opening a trade transaction.

Because the btcusd market is a fast moving market and the btcusd market moves are volatile it is best that traders do not trade with a very complicated method. Instead a btc/usd trader should try and develop a trading system that will identify bitcoin trends early enough & at the same time have a way of validating these signals so that to eliminate whipsaws. As long as a bitcoin system can accomplish this then the bitcoin system will give good signals most of the time. But instead most traders want to put more & more indicators on their trading systems to confirm a signal that is generated when only one indicator is required to confirm the signal. By putting too many indicators a bitcoin trader can get conflicting signals because the chance of one trading indicator giving an opposite signal to other trading indicators is very high, henceforth meaning that instead of getting the confirmation signal that a trader is looking for a trader might get more confusion instead.

For this reason it's best as a trader to come up with a simple strategy with fewer trading rules which will be easier to follow when trading.

The first thing which a trader needs to determine before opening any trade is the bitcoin trend of the btcusd market. The bitcoin trend of a market is the general direction that the btcusd market is moving towards. When bitcoin prices starts to move in one direction it will keep moving in that direction for some time because of the momentum that the direction will have. This momentum will result in a trend. The bitcoin trend is the most reliable method that can be used to trade bitcoin. In general traders will find it is to make money when the btcusd market moves up and also when the btcusd market moves down, but they will find it very hard to make money if the btcusd market is moving nowhere.

What this means is that traders should first determine if the btcusd market is moving up or down before deciding to trade. If the btcusd market is moving up a trader can open trades in that direction and if the btcusd market is moving down a trader can then open trades in that particular direction. But if the btcusd market is not heading in any particular direction and the bitcoin prices are consolidating then a btc usd trader should not open any trades and should stay on the sidelines.

After determining if there is a bitcoin trend or not a trader can then use their system to determine when to open a trade.

The bitcoin system should therefore not be too complicated to follow its rules.

The task that traders should focus on is determining the current market bitcoin trend whether the btcusd market bitcoin trend is up or down and this is what will determine the profitability of the strategy that a bitcoin trader is using.

There are many technique of determining a bitcoin trend most of which are covered in this website on the bitcoin strategies section of this web site. Bitcoin traders wanting to learn these strategies can navigate to the bitcoin trade strategies section and do more research on which strategies are used to determine trends.

After researching & deciding which technique or strategy is best for them a trader can then use that strategy to come up with their own simple technique or system that has simple rules that will be easy to follow when trading the online bitcoin market.

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Coming Up with a Simple Strategy