Can You Make Money Day Trading Crypto

Day trading cryptocurrency is a popular strategy in the stock market. It's an extremely volatile approach because the crypto sector is very volatile. However, day traders are hunters of volatility, which is a good thing. The bitcoin sector is pumped and dumped a lot, but if you understand how to day trade and read chart patterns then this could be a very lucrative trading strategy if done right.

Can You Make Money Day Trading Cryptocurrency?

• Can you make money day trading cryptocurrency? Yes, day trading is one of the best ways to make money with crypto. Trying to hold long term can be very risky because of all of the volatility on the charts. If you buy at a good support level you can hold longer term, but it's important to take your profits along the way.

Day trading cryptocurrency is one of the ways you can grow your brokerage account. It's important to get good stock training as you look into day trading cryptocurrency. Why? Because it's not as simple as you think. Knowing when to buy and sell, a trading plan, and proper risk management are the differences between gambling and actually trading.

The bottom line is using proper risk management will protect you and your account. If you adhere to these principles you can keep your losses small and let your runners run. The crypto world is a lot like the stock market world. A straight up battle between buyers and sellers, bulls and bears, supply and demand.

With proper training, you can take advantage of each and every move that happens when day trading cryptocurrency. And you can trade virtually anywhere, and anytime too. I use Robinhood for my crypto trading, and it works great!

Markets such as the crypto market are volatile. They are highly speculative and backed by no real asset. With that in mind, day trading may be the safest way to protect yourself from the random volatility. What is day trading? Investopedia defines it as buying and selling a security in a single trading day. We do a lot of that around here!

In other words, you're not holding a stock, or cryptocurrency overnight. You can make just one trade in which you buy and sell in the same day or you can make many. Volatility is a key part of trading. It makes it a great opportunity.

Volatility

In essence, you need volume and volatility. Volume and volatility move price and give traders action to buy and sell. You need that price movement in order to make a profit. Getting stuck in a trade that moves sideways too long can be quite boring, but if you're investing for the long run, that's completely different.

You may not mind if it trades sideways for months or years if you are an investor. Bitcoin, the biggest and most popular cryptocurrency trading in the market, has seen a 10% increase in just one minute. If you don't have a good trading strategy, you could have missed the move or taken a big loss. Setting a good alert with your trading tools is the way to go.

Being a responsible trader whether it's day trading cryptocurrency, stocks or options is incredibly important to your trading account. The goal of all traders is to grow your wealth. Small base hits add up over time, and are much better than home runs one minute and striking out the next.

Hence the need for day trading cryptocurrency safely. The volatility in the cryptocurrency sector can burn you if you're not careful. Take our day trading course to learn more about responsible trading.

Don't Fall for the PUMP

When we think of pump and dump and manipulation we typically think of penny stocks or day trading strategies. However, day trading cryptocurrency falls into that category now. As a result, beware of the pumper. A pumper is a guy who yells a lot that the crypto is going to the moon, but can't show you a chart explaining why.

If someone is promising something that sounds too good to be true, it usually is. Usually they're telling you about getting on the ground floor of a revolution. You can either go along with them or do your own due diligence. We really hope you do your own research.

Cryptocurrency has only been around since 2009 and it wasn't until recently that people became fully aware of it. Day trading cryptocurrency can protect you from bag holding from buying at resistance and not properly planning our entry.

However, make sure you're trading crypto stocks that have a tight bid ask spread and liquidity. Volatility is good when you can get your orders filled and the stock is moving.

There are crypto stocks that people are promising are "going to the moon". However, when you look at the charts, you're scratching your head wondering how that's even possible.

Hence why we stress doing your own research instead of going along with what someone is telling you. The goal of our service is to make you a self sufficient trader.

That way you're not getting trapped by pump and dumps. Getting whipsawed around in a trade is not fun. Sometimes the best trade is the one you didn't take. Meaning, trade less, and make better trades. Don't just trade to trade. That doesn't tend to work out too well. Check out our penny stocks list for a list of small cap stocks that aren't being pumped.

Charts and Patterns

To be good at day trading cryptocurrency, you need to be able to find the best setups. Seeing and reading patterns are extremely helpful to finding good profit targets as well as entries and exits. I like to use trendspider for trade setups.

Day trading cryptocurrency can be extremely volatile at times. If you can't read the charts, you're going in blind, and just guessing. It's important to remember that patterns do break down. So you need to be able to see the small patterns that make up the bigger patterns.

Patterns can have a profound impact on the direction of the crypto stock you're trading. There are the patterns on the daily charts and the patterns on the intraday charts. If you don't know what head and shoulders, cup and handles, bull flags, ascending triangles are, just stop right now and take our candlestick course! We hold your hand and show you these patterns daily on our streams too.

Because of the volatility in day trading cryptocurrency, those different time frames can cause those stocks to trade in directions you weren't necessarily anticipating. If you don't have a entry, stop loss, and profit target in mind, don't take the trade!

That doesn't mean you need to look at every chart before placing a trade however. You'll find there are certain time frames that match up best with your trading style and plan. I for one love to look at hourly charts, fifteen minute charts, five minute charts, and 1 minute charts when day trading. Multi-time frame analysis is key!

That may mean you need to open a paper trading account to practice and find which style fits you best. The good thing about day trading cryptocurrency is that there's no right or wrong way to trade it if you're using proper risk management and can find the patterns.

Check out our bitcoin stocks list if you want to learn how to properly and safely trade cryptocurrency. The course is a hard dose of reality and a wake up call to each and every trader that has the wrong perceptions about trading crypto.

You can see on this chart here that Bitcoin isn't looking bullish. As a result, don't listen to anyone who says charts don't matter in this sector because Bitcoin is the future. While that could be true, trading the patterns is going to keep you from losing your life savings.

How Much Money Can I Make Day Trading Cryptocurrency?

• How much money can you make day trading cryptocurrency? Well, that all depends on how well you know day trading. If you know how to momentum trade then you can make $1,000+ per day or more, if you have enough capital in your trading account. It all comes down to knowing how to trade the technicals.

Technicals: Day Trading Cryptocurrency

Technical analysis is important if you're going to day trade cryptocurrency. In the picture above, you can see that Bitcoin is trading below the 13 ema.

Not only is that bearish, there's a bear flag pattern forming as well. As a result, you can expect that Bitcoin is going to continue to move downward.

If you use 9 and 20 EMAs or 50 and 200 SMAs, you want to see if they're in a bearish formation. That can guide how you trade the sector.

Another thing technical analysis can help with is finding support and resistance. Many times new traders lose their shirts because they don't know how to find support and resistance.

As a result, they typically buy at resistance because the see the stock ripping. Then traders take their profits and the stock falls. New traders then don't understand why they lost money when the stock was ripping.

Check out our live trading rooms where we talk about support and resistance along with technical analysis.

Don't Trade on FOMO

Day trading cryptocurrency can result in big, fast moves. Fear of missing out, especially when you see a stock moving, can cause pain when day trading cryptocurrency.

When a sector as volatile as crypto can be, is moving, you may find yourself trying to jump in and catch it.

However, that usually means you're left taking a loss. If a stock is taking off, wait for a pullback. Don't rush in trying to be apart of the move. If you miss one move, there will be others.

Day trading cryptocurrency following that philosophy can go a long way in protecting your brokerage account.

Did you know that we have real time stock alerts? These can offset day trading cryptocurrency. You know what they say, diversification is good.

Therefore, diversify your trading with things like an oil stocks list and a gold stocks list can help grow your account.

Final Thoughts: Day Trading Cryptocurrency

Day trading cryptocurrency may be the safest way to invest in this sector at this point in time. Therefore, you need to be able to spot entries and exits along with support and resistance.

It's really important to know what you're doing with the cryptocurrency sector. You want to make money and not lose your life savings on the future.

That requires practice along with study. It also takes time. While we know that's not what many people want to hear, it's the best way to become a successful trader.

Can You Make Money Day Trading Crypto

Source: https://bullishbears.com/day-trading-cryptocurrency/

Posted by: steelhavive.blogspot.com

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