TRADING PLAN

A trading plan involves numerous ways by which we can make profit from trading. It is a well defined plan for all your trading undertakings.

The trading plan is a sketch that is created to act as guide while you are trading, this goes a long way to regulate or curb the probability of encountering a financial risk while trading.

Although it is not compulsory to have a trading plan but it is important if you intend to have a smooth experience in your trading activities as it saves us from some risks that could be avoided when using a trading plan.

A good trading plan must have the following properties:

You must define the type of asset you want to trade

The set up that you take

You must have an entry and exit strategy put in place

The tools and indicators that will be used in your trading

Define the manner by which you will measure or determine your performance

MY PREFERED TRADING TYPES

There are numerous trading types or trading strategies depending on you’re the type you want to engage, if I am to choose a particular trading strategy that I would use while trading, I will readily go for the SWING TRADING strategy.

SWING TRADING

The swing trading is actually a type of trading that has to do with short terms to long term gains in a stock, over a matter of days, weeks or just a few months.
This type of trade opens the trader or investor to overnight or weekend risks, the swing trading doesn't span up to a year, it only takes weeks to just a few months.

@yohan2on

ADVANTAGES

The swing trading doesn't require so much time like the day trading.

It enables the investors to rely on the technical analysis, this makes the process of trading easier.

DISADVANTAGES

Those that swing trade normally or most of the time miss longer term trends in the favour of the short term trends.

The sudden market reversals in swing trading most of the time leads to a huge loss

The investors or traders of the swing trade are pron to overnight and weekend market risk.

DOGE/USDT

The DOGE/USDT is a trading pair that gives the value of dogecoin in USDT, a steady coin, and this helps to give a quite stable value that can be used to compare other ccryptocurrencies. Using a stable coin as a reference is good because it is easier to measure value from a fixed standard and USDT is that standard.

My entry and exit strategy

As pointed out above, before trading, it is necessary to have a clearly defined entry and exit strategy, Entry and exit strategies are essentially the mental triggers that you have observed with time and from technical analysis to be effective in making a profit; and a good level of efficiency. So there are triggers that prompt traders to buy and sell and it varies across traders.

ENTRY STRATEGY: I study the chart for a very great downtrend and just at its base is where I await for a bullish run, I do not buy immediately until I spot another sign of an uptrend, that way I get to invest little and expect a greater harvest.

This strategy is efficient as we targetted the base of a bearish run , because the whole market tends to correct itself and that gives me a good chance of a long bullish trend later, even though it is not certain.

EXIT STRATEGY : I exit the marked in phases and not completely , that is, whenever I experience the bullish rum anticipated above, I sell some of my position, for instance, I sell off about 30%, when the market breaks my resistance level and I hold the rest in case of an unexpected high.

MULTIPLE TIME FRAME ANALYSIS

The multiple time frame analysis has to do with observing and carefully taking into cognizance the same currency pair at diverse frequencies.

Analysis can be done in various time intervals depending on the kind of trading strategy employed. It is of great importance to choose the right time frame, a long term trader who is holding for a long period of time, say a month will not have need for 5 minutes, 10 minutes etc. combination.

The use of indicators in analysis

Moving average (MA): This type of indicator takes the average of the highs and lows of a market divided by the time frame in question. This is a very popular tool in technical analysis because of its simplicity to calculate and its efficiency. It tells the trader what to expect based In the happenings of the past.

Moving average convergence and divergence (MACD): It is an impetus oscillator primarily used to sell and buy trends; It’s shown on the chart as two lines which oscillate without limits. The verge of the two lines gives trading signs comparable to a two moving equal system. This indicator makes use of two exponential moving average (EMA) lines , the signal Line and the MACD line , and the prediction is based on the convergence, divergence, and intersection of these lines

TRADE MANAGEMENT

Crypto trading as we all know is volatile, it is not stable and so in order to maximize profits, you must undergo an inevitable step of taking risks.

1. Stop loss: Stop loss is a limit that is implemented automatically on an exchange when the price of a coin begins to fall. When trading, one can set a stop loss limit bellow which the system automatically sells the positions in order to minimize losses.

2)Trailing stop: A trailing stop is a limit that is set bellow the price of a particular coin, and it is dynamic and very flexible because in automatically triggers a sale once the price falls to that set price and it protects a bullish run by selling positions and adjusting the take profit levels , based on the setup.