Essential Checklist to Nail Cryptocurrency Trading

Everyone gets into the crypto trade to make lots of money, but not all achieve this noble goal. A lot of them fall into the trap of scams or give up. If you want to avoid all these, find and implement a smart checklist that allows you to trade like a pro.

What does it give you? You learn to stay focused, disciplined, and confident.

Here are top considerations you must have in place if you want to be trading as elites do.

Do I Have Adequate Information About the Crypto Coin?

Cryptocurrency trading is unique and specific rules govern it. Moreover, traders need to follow distinctive procedures and strategies to make money on cryptocurrency exchanges. In other words, if you want to trade like a pro, you need to use the right tools to gather credible and useful information about your digital currency before entering the market.

Here are the tools that can help to improve your trading success:

• News Aggregator: The best news aggregators enable cryptocurrency traders, enthusiasts, and investors to monitor industry-related news from thousands of sources in real-time. They also indicate the impact on the price and market. When you use this tool, you mitigate the negative effect of current events on your portfolio.
• Coin Price Tracker: You can use the tracker to get live cryptocurrency prices in multiple fiat currencies. The information is useful for comparing the costs of various coins and choosing the most profitable one.
• Crypto Events Calendar: This trading tool provides a comprehensive list of crypto events taking place across the world. Depending on the events' nature, you can decide whether to invest in a given coin or not.

Have I Visualized My Potential Trades?

If you work like a pro, you will be able to forecast your potential trades with ease. This helps you to avoid making decisions based on speculations.

You can use these two ways to visualize the future and increase your chances of making lots of money within a short time:

• Charting Trades: This method involves confirming whether your coin's weekly chart shows your market is trending or balanced. You should note whether the price is located within the acceptable points within the chart or outside some extremes.
• If you notice a strong trending activity, consider investing. These trends hardly reverse too quickly. However, this doesn't imply that you automatically need to search for a continuation trade. Nonetheless, it would be best if you did the due diligence before accepting reversal trade. Please note that pros patiently examine long-term trends, which gives them an edge over the rest.
• Besides paying attention to the weekly chart, it would help if you considered a sequence of approximately three days. This applies if you noticed a trending market on the weekly chart. You can make your decision depending on whether you see an ascending or descending trend.
• Automating Trades: Charting trade is essential, but it may not help if you need to conduct many trades within a short time. You may not analyze all the available data. Moreover, emotions may negatively influence your trading ability.
• Trading bots minimize these troubles as they monitor the financial markets, gather relevant information from millions of databases, and execute the trade based on preset trading rules. Once you have chosen the right trading robot, set the parameter of your desired trading strategy.

Do I Have Efficient Tools for Checking Trading Performance?

Once you start trading, you should not remain in the dark. Cryptocurrencies are typically highly volatile. The price can fluctuate when you least expect it. So, it would be best if you had a dedicated portfolio tracker. They come with powerful analytical tools. Many others are integrated with exchanges, brokerages, and crypto screener tools.

With a dedicated portfolio tracker, you can reap all the following benefits:

• Make sound spending decisions
• Manage your risk professionally
• Closely monitor your investment
• Identify your trading needs at the opportune time

The secret is to choose a portfolio tracker that meets your needs and use it daily. You will notice when you need to improve your investment parameters and take the right action. In some cases, it may help you to redefine when to stop loss or end the trading session.

Am I Emotionally Healthy to Trade Crypto?

Your checklist should not be complete until you include this one. Your emotions will always influence your investment decisions. If you are automating the trade, you may set the wrong parameters and make huge losses. So, robots minimize the effect of your emotions, but they are not the perfect remedy.

Read on for the most important ways to stay sane when trading cryptocurrencies:

• Set trading Hours: The truth is that you cannot work 24/7. So, while exchanges are always open, you must set realistic working hours to avoid overworking your emotional health.
• Stick to Your Pre-Made Plan: You should emphasize mental discipline. Create plans on how you intend to do your homework on the market and price variations and choose the right coin. Do not overwork to start trading earlier than practically possible.
• Tame the Greed: Fear and greed are the greatest enemies of beginners. Pro traders have learned the art of keeping their emotions neutral. As a rule, they only pay attention to the cold logic of percentages, the trade's framework, and the methodology.
• Treat Loses as Learning Opportunities: Pro traders understand that making losses is part of the game. They do not let it trigger self-flagellation, anger, or despair. Instead, they reframe the failure to see the lesson to learn from it and become better at the game.
• Have Other Sources of Income: When your livelihood depends on the trade, it becomes much harder to play by the rules. You lose the ability to reason, which can trigger an adverse emotional reaction.

Wrap Up

Using a smart checklist before entering any trade enables you to create the best trading plan. Traders need this to be able to focus on the big picture. However, the right trading checklist deals with each trade and the conditions that you must meet to increase your chances of success. You need it, as it helps traders to remain disciplined and confident from the beginning to the end. With the right trading plan and checklist at hand, you are adequately equipped to start trading crypto like a pro.