Tips for Day Trading Bitcoin and Gold

With the rising tension between the US and China, investors are plowing money into Gold and Bitcoin.

https://markets.businessinsider.com/currencies/news/bitcoin-safe-haven-gold-during-us-china-trade-war-2019-8-1028470902“Investors appear to be treating bitcoin as a haven asset similar to gold, given the volume of cryptocurrency trading has increased during the conflict.

There was a 284% surge in bitcoin trades between 19 May 2019 and 19 August 2019, compared to the period between 22 March and 22 June 2018 just prior to the trade war, according to data from eToro, an online trading platform.

Trading of bitcoin more than doubled during certain key moments of the trade war, the data showed —usually after tensions calmed.

The number of open positions in both bitcoin and gold have increased as the US-China trade war has escalated and the world’s two largest economies have slapped tariffs on each others’ goods, Simon Peters, analyst at eToro, told Markets Insider.

Bitcoin remains a more volatile asset than gold and faces additional risks, Peters said. However, investors appear to warming up to the cryptocurrency as a haven.” Read more…

Trading Gold or Bitcoin, to become successful, a day trader must be realistic about the amount of work, discipline, tolerance to risk and luck that is needed. Top day traders have a proven day trading system. Studies have shown that Day traders should never risk more than 2% of their float on any trade.

There is no fool-proof day trading system. The press is full of stories about how dangerous day trading is. The benefit of day-trading can be summed up with one word: control.

A day trader may sell a stock if it goes down only two or three cents. Relying on out of date information to base your day trading decisions will result in poor trades. In order to day trade successfully, you must develop a trading plan and consistently stick to it.

An investor need to reflect on his profile and choose a trading approach which fits his personality. Weigh the risks and rewards against your current financial situation and future financial goals, and decide if day trading is for you. Day trading can be learnt and practiced with absolutely no financial risk at all.

Day trading can be very risky, so you should only trade money which you can afford to lose totally. Day traders will tell you that raw cunning and nerves of steel are the key ingredients of their success. Don’t begin your day trading with money that you can not afford to lose. Trading successfully requires time, market knowledge and market understanding.