7 Steps Before Taking a Crypto Day Trade
Before you click LONG or SHORT, you should already know exactly what you are risking and why you are entering.
Here are my 7 steps before taking any crypto day trade:
1️⃣ Check the market trend.
Is the market bullish, bearish, or ranging? Don't trade without understanding the bigger picture.
2️⃣ Find your setup
Wait for your strategy to give you a clear entry. No setup = no trade.
3️⃣ Define your entry
Know exactly where you want to enter. Don't chase the price because a candle is moving fast.
4️⃣ Set your stop loss
Before entering, know where your trade idea becomes invalid. A stop loss helps define your maximum risk.
5️⃣ Calculate your position size
Don't choose your position size based on how much you want to make. Calculate it based on how much you are willing to lose.
6️⃣ Check your risk-to-reward
If the setup doesn't offer enough potential reward compared with the risk, skip the trade. For example, I prefer looking for setups around 1:3 risk-to-reward.
7️⃣ Check your mindset
Are you calm and following your plan—or are you trying to recover a previous loss? If emotions are controlling the decision, don't trade.
#askanda #crypto #DayTradingTips
Before you click LONG or SHORT, you should already know exactly what you are risking and why you are entering.
Here are my 7 steps before taking any crypto day trade:
1️⃣ Check the market trend.
Is the market bullish, bearish, or ranging? Don't trade without understanding the bigger picture.
2️⃣ Find your setup
Wait for your strategy to give you a clear entry. No setup = no trade.
3️⃣ Define your entry
Know exactly where you want to enter. Don't chase the price because a candle is moving fast.
4️⃣ Set your stop loss
Before entering, know where your trade idea becomes invalid. A stop loss helps define your maximum risk.
5️⃣ Calculate your position size
Don't choose your position size based on how much you want to make. Calculate it based on how much you are willing to lose.
6️⃣ Check your risk-to-reward
If the setup doesn't offer enough potential reward compared with the risk, skip the trade. For example, I prefer looking for setups around 1:3 risk-to-reward.
7️⃣ Check your mindset
Are you calm and following your plan—or are you trying to recover a previous loss? If emotions are controlling the decision, don't trade.
#askanda #crypto #DayTradingTips