How much money do I need to invest to make $500 a month? These are the full rules of strategy. Novice traders can trade with it knowing that it has performed well in the recent period, but the trader should be aware that most of the trades are not profitable.
Bitcoin trading strategy for beginners, by looking at historical Bitcoin data from March 2020 until now on the weekly timeframe.
We find when the Bitcoin price closed with a full candle above the 7-day moving average, and the price achieved weekly green candles above it, and only closed below it with five low candles in trading volumes, with simple profit-taking operations, within the framework of the general bullish trend. And it did not close below the 20-day moving average or once, indicating the strength of the bullish trend.
Trade management: 2 days after entry, if the trade is still open, move the stop loss up. And allow winning trades to continue.
Exit strategy:
When the price closes in a full candle below SMA 20 or at the intersection of SMA 7 with SMA 20, you can exit the entire trade, for the cautious investor.
Of course, if the price is close to the desired target and there are clear signs of running out of momentum, or it seems as if the price is actually reversing against you, then it makes sense to exit early.
And it is important not to enter into sideways trades ... you may get false signals. Rather, a safe entry with the breakout of the last previous high.
And use Japanese candlesticks to understand the psychology of dealers. Do they tend to buy or sell? To understand the language of price charts, you have to learn Japanese candlesticks, as they are like the alphabet for any language.
So, be flexible with the rules for your exit strategy, as this area needs a lot of learning. Most traders find exit points difficult, or in other words, psychologically difficult.
You may want to start with a strict exit strategy, which indicates that it is time to exit the trade.
In the same context, this strategy can be used in a shorter time frame than the daily chart. We recommend starting with the daily chart and sticking to it, but more experienced traders can drop to the 4 hour or even hourly charts as soon as the daily chart gives an entry signal, trying to find a more accurate entry point.
