It is important that you have rules and trade based on your trade plan only. Follow it when you trade using Crypto code.
Set your exit rules
Traders focus a lot of time in understanding the entry and miss out on the exit rules. They concentrate all their efforts on where to enter the trade and forget to pre-plan the exit. Traders need to plan the exit be it a target or a stop loss price. It is important to accept loses in trades. This is a small amount that you pay towards the business.
Every trade cannot be profitable and this is true even for the professional traders. If your stop loss gets hit then get out of the trade because it means that you are wrong in your trade.The professional traders actually have more losing trades than winning trades. But they manage their risks and limit their losses and this is what lets them be in green.
Entry rules to take a trade
This is the second thing after exit that you should plan for. Exits are more important than entries. The entry criteria need to be effective and also simple. You need to have some entry conditions and you take a trade only when all the conditions are met. Computers are better traders than humans because they follow rules and do not judge the trades based on emotions.Computers do not do any second-guessing. If all the criteria are met they take a trade and when the trade does not go as expected it exits the trade ina loss. Computers also do not get angry and do not get revengeful with the market.
Record your trades
Record all our trades. This should include the ones that are profitable as well as the loss-making trades. If the trade is a winner then you should know what you did right. When you lose the trade you should know what you had done wrong. Make the detail record of each trade and note down the lesson that you learned from this trade. Another important thing to note down is the average time that you spent on the trade which is the trade efficiency.
After each day add up your profit and loss. Make a note of the reason for the profit or loss. This can use as a reference later.Understand what is working for you and things that you should avoid when taking the next trade.