Category: 5. Earning from Trading
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What is a Trading Journal?
A Trading Journal is both an objective record of your trading decisions (numbers & dates) as well as a subjective record of why you made them and how they panned out. If you are serious about cryptocurrency trading you must be willing to keep a Trading Journal that is entirely honest. It is too easy…
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Momentum/Position Trading
Another crypto trading strategy that is suitable for someone who is just getting started, and may lack the technical understanding and time commitment is Momentum Trading also known as Position Trading. Momentum Trading is essentially a more sophisticated version of hodling. A hodler will buy and hold – that is it. Momentum or Position Trading…
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Cost Averaging & Trading
The cost averaging, passive approach, can become an entry into full blown active trading, by adjusting the regular recurring investments based on an assessment of market conditions. If your research tells you that price will increase in the long term, your aim is to buy the dips on the way, making your entry points as…
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Time Preference
If you are looking to generate significant returns from a small investment, you have no option to assume risk, but how much risk and the type of trading activity, will come down to your time preference. In the context of trading crypto, investing is the low time preference approach – also known as hodling. You’ll need…
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Allocating Trading Capital
The amount of money that you can commit to trading crypto should be determined by what is known as discretionary income, which is what is left after you’ve paid all your regular living expenses and taxes. If your intention is to grow your discretionary income then the general advice is invest the majority in low risk…
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Earning from Trading
What you’ll learn Allocating trading capital The importance of time preference Difference types of crypto trading strategy Earning crypto requires a trade-off between risk, effort and expectation. Trading crypto has the potential for significant returns but it requires a significant amount of both risk and effort. Many people will make the mistake of simply opening…