How to Create a Cryptocurrency Trading Plan

Having a solid, well-crafted trading plan is essential for market trading. It can spell the difference between market success, on the one hand, or — on the other — giving in to FOMO, forgetting to factor in vital information, or regretting a decision not to trade later. An effective trading plan considers your trading style, risk tolerance, as well as your understanding of market sentiments, clear entry and exit rules and trading spread. It defines you as a trader, providing a road map for the way you trade. 

Whether you’re day trading, swing trading, shorting the market, or trading derivatives, formulating a trading plan is essential to identifying effective trades and capitalizing on them without anything getting in the way. 

We’ll take you through a step-by-step look at how to formulate a cryptocurrency trading plan while covering all the advantages of this essential strategic framework for informed traders.