For newcomers cryptocurrency ecosystem: 3 tricks for effective trading

In order to be an effective trader, it’s important to have an edge with your strategy.
Cryptocurrencies are some of the hottest markets to trade due to the increased volatility driven by emotion.
Trading is a zero sum game and only disciplined traders make consistent gains. Here are three simple tricks that may increase your win ratio.

Master a one kick trick
“I fear not the man who has practiced 10,000 kicks once, but I fear the man who had practiced one kick 10,000 times.” - Bruce Lee
Always have a plan before executing a trade and learn to master one effective strategy that can produce consistent results.
You don’t need a million bells and whistles to make money, just one simple tactic that works.
Wing Chun Kung Fu has a very efficient yet simple principal of “one punch, one kick.”
The idea is to accomplish the job as quickly as possible with very minimal effort.
Who needs a flying roundhouse kick, when a straight stomp to the knee will incapacitate your opponent with one simple move.
Find your edge in the market, a technique that works and stick to your plan. If you don’t have a strategy then you shouldn’t be on the battlefield.
Traders who execute random orders without a plan usually lose their money.

Trade Quality Over Quantity
One common mistake is the need to always be in a trade. Some traders get whiplash by chasing the market during choppy conditions.
Seasoned traders are very picky about when to pull the trigger. Most of the time the markets produce a 50/50 possibility for success.
You want to be patient and wait for trades that have a higher probability than a coin toss.
It’s better to find good trade setups instead of treating the markets like a roulette table.
That said, even quality trades have an element of chance, therefor you always need to have an exit strategy to manage risk.
Traders tend to make money when the markets are inefficient, unless you’re running an algorithm that scalps a flat market, stay away from choppy or stable price action.
Only trade in market conditions that are conducive to your particular trading strategy.

Manage Risk
Even if you have the most effective trading strategy in the world, with the best market conditions, there’s no guarantee of your success.
There are no absolutes when it comes to trading and nothing is ever guaranteed, ever.
Trading is all about probabilities and possibilities so it’s always good to have a backup plan in case you’re wrong.
Technical analysis is a way to quantify price action and frame your strategy with a series of if/then scenarios.
It’s always important to look at both sides of the market.

Risk management is a necessary ingredient for staying alive in these markets and making consistent gains.
Here are some things you may want to consider for your risk management strategy.

• Reduce counterparty risk
• Position size
• Set stops or hedge your position
• Go easy on leverage (excess leverage is risky.)

We hope that these lessons will help newcomers to adapt to the cryptocurrency ecosystem.