1. Risk control. A trader cannot know where the price will go. They also cannot know how much profit a coin will yield in a trade. The only thing they can control is their risks. Therefore, the first thing you should do is outline your risk management. You need to determine your maximum loss per trade and your maximum drawdown for the day. And under no circumstances should you exceed these values. Most day traders use a risk of 1% per trade from their deposit and a daily drawdown of 5-10%.
2. Choosing a strategy. For beginners, the best options are 'breakout of levels' and 'bounce from density'. You can try trading both strategies for a few weeks and settle on the one that suits your temperament better.
3. Creating and improving a trading system. Each strategy has a huge number of options for execution. The same breakout of levels is traded differently by everyone: some accumulate positions in parts in advance, while others enter right at the level, some try to catch a big movement, while others simply take the first impulse, etc. You need to find your unique trading solution that will suit your psychology and that you can execute best.
4. Collecting and analyzing statistics. You should record each trade in your trading journal. At the end of the trading day, week, and month, you should analyze the journal in detail, identify your mistakes, and make adjustments to your trading system. For convenient analysis of trades, I recommend using automated services, such as TMM.
5. Keeping a psychological diary. At the beginning of each trading day, you should check your psychological state. It is also necessary to record it at the moment of opening and closing a trade. This will help you understand your weaknesses faster, identify and eliminate triggers that cause gambling behavior and tilt.
When you achieve positive statistics, you can gradually increase your trading volumes. For example, start with 2x leverage – if you end the week in profit, raise the working volume to 3x leverage, if the second week is also in profit – to 4x, and so on up to 5x leverage. I would not recommend using more than five, as in this case you will no longer be able to adhere to the 1% loss rule per trade.
If you end the week in the negative, then reduce your leverage. And so you smoothly move through micro-cycles every month. This flexible system, along with compound interest, will allow you to quickly grow your deposit without significantly raising risks.
In the screenshot, there is a formula for calculating compound interest, from which it can be seen that if trading with 3x leverage and taking 1% of the movement per day, an account of $50 can be grown to $10,000 in six months.
