A simple and practical guide
1. Set a clear daily goal
Aim to earn $100 each day. You can break this down into smaller trades, such as four trades with $25 profit or two trades with $50 profit.
2. Decide on your starting capital
Ideally, start with $10,000 for safer trades. With less capital, you will need to take higher risks to reach $100 per day.
3. Choose the right cryptocurrencies
Focus on assets like Bitcoin or Ethereum that have high trading volume and regular price movements. These are easier to trade quickly.
4. Follow a reliable trading strategy
Day trading involves holding positions for a few minutes or hours.
- Scalping means making several small trades aiming for a profit of $10 to $25 each.
- Breakout trading focuses on price movements when coins break through key levels.
- Swing trading allows you to hold positions for 1 to 2 days during strong market trends.
5. Use basic technical analysis
Use moving averages to spot trends, the RSI to identify overbought or oversold conditions, and Bollinger Bands to check volatility.
6. Manage your risk
Do not risk more than 1 to 2 percent of your capital on a single trade. If you have $10,000, limit the risk of each trade to $100–200. Always use stop-loss and take-profit orders.
7. Stay informed about market news
Look at the crypto news and updates that may affect prices. Use alerts and news feeds to stay ahead.
8. Diversify your trades
Avoid putting all your money into a single coin. Spread your trades across a few different assets to reduce risk.
9. Keep a trading journal
Record each trade. Review your performance to understand what works and improve your strategy.
10. An example of a daily profit plan
If you have $5,000 and aim for returns of 2 percent, that represents $100 per day.
Try to make three trades with about $33 profit each to reach your goal.
With a consistent approach, risk management, and discipline, earning $100 per day through spot trading is a realistic goal.
