Cryptocurrency and Forex trading is often characterized with a lot of volatility and risk, which limit its adoption to only the risk takers. Research had even showed that only 10% of traders are successful, cashing big profits and leaving the remaining 90% in big losses.
The best method of trading can be to identify the moves of this 10% successful traders and move alongside their pattern. However, doing this will require you to have knowledge of the Market, Trader Psychology and  Stop Loss Order.

1. Market

Buyers and Sellers make up the market. Therefore, the forces of demand and supply determines the price of any commodity or asset been traded in the market.
It is very important to know when a commodity is overpriced or under-priced because smart investors buy LOW and sell HIGH.

Studying the chart and history of prices will help you determine whether a commodity is over priced or under priced. You must study prices and charts before investing a dine.

Investing means to buy low and sell high usually over a long period of time, while trading is buying a position and selling it within short period of time.

Note: Trading is different from investing, and the major mistake people make is not knowing whether they’re investing or trading.

2. Trading psychology.

Investopedia explains Trading psychology as the emotions and mental state that help to dictate success or failure in trading securities. It’s the mindset of the trader, and it can be as important as knowledge and skill in determining trading success.

  • Are you the type that wants to gain 1000% on every trade?
  • Do you put all your money on a single trade?
  • Do you follow others trading signals blindly?
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If you answer YES, then you need to change your trading mindset, strategy and plan.

The 10% successful traders build their portfolio slowly, therefore, they are not looking for 1000% gains. They don’t invest all the money in their portfolio on a single trade i.e. they divide across trades.

They’re active investor and passive trader. Also, they learn one market very well before switching to others etc.

3. Stop Loss Order

Investopedia defines it as an order placed with a broker to buy or sell once the commodity or stock reaches a certain price. A stop-loss is designed to limit an investor’s loss on a security position.

Using stop-loss is the most effective way to manage risk. It’s like having a car or a house with a standby fire extinguisher. The risk of getting totally burnt is greatly reduced.

If you notice the market is always catching your stop-loss order, go completely out of the market(don’t trade).

Finally, I will like to give you a piece of advice: ALWAYS USE STOP LOSS. Based on my 2 years experience in trading, I have realized that most of my losses was as a result of not using stop-loss order.
I believe you have gained one or two things as regards trading Crypto and Forex profitably. Do share your thoughts in the comment box below.