Hello to all new traders. Today I come to give you a beautiful system that will be able to teach you to trade intelligently, without investment or risk.
I call it 'Written Simulation' and it was something that helped me a lot to trade and make profits.
This is something essential for everyone new in this world of cryptocurrencies. Most of you lose your money by trading without knowledge or strategies.
So why are you here? Isn't it to make money? Then stop wasting it and start trading intelligently.
So, what is the written simulation and why should I apply it?
Written simulation consists of using a notebook and a pencil to write imaginary operations without investment or risk.
By doing so, you will be able to learn market movement as well as the necessary habits of a good futures trader.
How does it work?
Simple, the written simulation focuses on a single coin, $BTC
Why BTC?
Because it's no secret that the market moves alongside BTC, and if you learn its movement then you will be able to learn the movement of most coins.
Now it's time to apply the written simulation.
First decide your initial capital, my advice is to choose $40.
Second, choose the level of operation, my advice is 25% of capital $10.
Third, choose the level of leverage, my advice is x125.
Fourth, choose the moment when you decide to trade long or short. Let's say 91,500 is the current price.
Fifth, it's time to execute the operation.
Now some may wonder why I decided on a $10 operation with x125 leverage, it's simple. Because with every 100 points in your favor you will earn on average $1 in a real operation, against is -$1 loss.
In addition, the commission would be on average $1 in total.
So it's time to start; I placed a short operation at 91,500, expecting the price to drop to 91k to earn $5 in profit.
So, I wait and in 40 minutes the price reaches the take profit and the operation closes. With that I earn $4 in profit from the commission. That's 10% of my total capital.
Now I have $44 in my futures wallet, before executing another operation, I send the $4 of imaginary profit to another wallet and continue trading with $40.
This is one of the habits you need to learn, always secure profits and never be too greedy or you will lose everything.
Now I decide on another operation, the current price is 91k and I put it in long this time. But it turns out the price drops to 90k, that's -$10, if you count the commission it's -$11, your liquidation price is 2.95k points against, since $10 is used in the operation and your margin is $29.5. Now it's time to decide: Should I close or hold? I decide to hold it since it's imaginary money, who cares if it gets lost? And boom, you got liquidated. The price dropped to 85.
It's time to note your losses, equal to $36 lost in just two operations. Imagine if it were real money, in just two operations nearly all your money would be gone.
So it's time to learn to use stop loss; next time you will place a stop loss at 50% of your capital to be safe.
Repeat these operations 30 times a day, remember to note your losses and if you added more funds. At the end of the day see if you made profits or losses and repeat the whole process for a whole month until you achieve 80% accuracy in your operations.
I will be publishing more necessary habits in a good futures trader so you can add them as you learn. So remember to follow me for more necessary tips in this crypto world.
For a day when beginners stop giving away their money.