If trading is new for you, you might find yourself overwhelmed by the information overload.
While it is always good to know as much as possible, there is so much data that it can be hard to separate what works from hype and tricks.
This article will walk you through some of the most effective tips used by professional crypto traders in the Mena region.
These tips come straight from their mouths on live interviews or chats I had with them – all the explanations behind each tip come after each tip.
Trading your emotions
When talking about emotions, we don’t just mean fear and greed but also include your perceived confidence in your trading strategies.
Suppose you are confident that something will increase or decrease in value. In that case, it is already affecting your emotions, and you might want to re-evaluate the strategy.
There is a fragile line between too confident and too fearful with trading. If you are sure that a coin will increase in value, it may be worth holding onto it for longer than necessary.
If you set stop losses too close to the current price, even a slight reversal can put you in the red. The best option is to look at the daily chart before making any trade and see.
If there’s an upcoming event that might move its value significantly – don’t go into trade straight after seeing that data!
Quick wins
If a coin has seen minimal movement for a while, it might be worthwhile to look at its daily chart.
There might be some small but significant price shift coming up, which you can quickly take advantage of before anyone else notices.
Setting stop losses correctly
This one sounds pretty self-explanatory, but a few traps traders fall into where they set their stops at the wrong place and lose money on every trade because of it.
The first trap is setting your stops at the same place as everyone else. It might happen if you use a trading strategy that has worked in the past, but people now see it.
Set your stop either above or below recent buying levels to reduce the chance of being stopped out too early/late.
The second trap is adjusting to stop losses based on market volume. It is an advanced technique for experienced traders only, knowing how much activity there will be in a specific coin.
It can give you insight into what price fluctuations are normal and unusual. Start adjusting your stop-loss levels according to expected fluctuations.
You can avoid being stopped out by small amounts of movement when volumes are low.
However, this is very risky if volumes are high – you might miss a significant opportunity by letting your stop loss hit.
Example: BitOasis
BitOasis was founded by two entrepreneurs from the Mena region with a mission to make it easy and safe for anyone to trade digital currencies.
They started their journey as Bitcoin sellers in Dubai. They have since evolved into a leading cryptocurrency exchange that offers multiple payment methods, top-level security and regulatory compliance.
BitOasis recently conducted a trading competition where the winners were selected based on their trading performance between March 1 and June 30.
The first winner was one of our most active traders who used his indicators to pick the best time for buying XRP.
The second winner used a combination of sentiment analysis and technical analysis to make better trading decisions.
The third winner took the least risk by using stop losses at 20% above his buys, locking in some profit whenever he had a quick win.
Our fourth winner took longer trades but captured the lowest risk opportunities. Lastly, our fifth winner held onto his coins for as long as possible to maximize the amount of XRP he would receive.
If you are looking to trade in Mena, BitOasis is one of the best places to start. Registered users can use our simple verification process and start trading within 1 hour.
