You need a trading plan even after you have chosen a trading strategy. A trading plan will help you to make disciplined trades instead of acting out of emotions when stakes are high. That way, you will not let your position stay open for too long or close one too early. In that regard, follow the tips below when creating your trading plan.
- Set your short-term and long-term goals that you need to achieve from Bitcoin trading.
- Come up with a number of the acceptable financial risk for each trade, as well as an overall number for all your Bitcoins.
- Come up with a risk-reward ratio that will justify how much you are willing to risk on each trade.
- Choose the type of Bitcoin markets you will trade, such as a binary option Bitcoin versus Dollar pair.