Yesterday exactly explains why almost all traders lose money sooner or later and the idea of being able to get rich quickly with trading usually fails.

But that doesn’t mean that trading doesn’t work in principle. However, there are some basic rules that should be strictly observed in order to be profitable in the long term. Although even beginners can make money trading with luck, a real trading strategy has less to do with luck, but much more with discipline and a well thought-out concept.

Rule 1: Learn, learn and learn again.

Many traders rush headlong into a trade and painfully learn what it’s like to lose money quickly. Good preparation is everything to be successful as a trader.

If you want to trade, you should therefore deal with technical analysis in the first step. Because how prices move can often be explained with the help of technical indicators.

Therefore, every newcomer is well advised to get good specialist literature on trading and read useful online guides on trading. Before the first own money is put on a crypto exchange like eToro, it should be understood how technical analysis works.

What do chart formations like an ascending or descending triangle, a head-and-shoulder pattern, a flag, a double bottom or a beard pattern say about the prices? And how can average lines, trading volumes or events such as a Death or Golden Cross be used for trading?

Rule 2: Understanding the Trading Platforms

If you think you have read the technical analysis well, the next step is to sign up on a platform such as eToro or Libertex to try trading with leverage.

Many providers provide tutorial videos with instructions for trading on their platform. Demo accounts are also useful for trading. Here you can try trading with virtual money without real losses. Newcomers in particular should definitely make use of this option before using their own money.

You should also take the trouble to compare different providers. On the one hand, it’s about the interface. Is it simple and intuitive, so that users can quickly find their way around it?

On the other hand, fees are a significant factor in the choice of trading exchange. Because the exchanges earn on the trading fees that investors have to pay to be able to carry out a trade. These fees may differ significantly.

In the long run, the fees can be quite significant. Especially with larger and longer held positions, the trader must already make a significant profit to pay only the trading fees. So, he must be clearly profitable with his trade in order to get a net profit after deducting fees.

Rule 3: Start with low inserts and small levers

Many beginners make the mistake of getting too risky on their first trades. It is advisable to use only a small amount at first. It should be a sum whose total loss the trader can easily get over. In no case should sums be used whose loss endangers the current livelihood. Also, it is strongly discouraged to get into debt with the hope of quick profits and take a loan for trading.

How much exactly should be used at the beginning at most, however, can not be generalized and depends on the personal budget of the trader. While some can already make a loss of 50 euros, others can also cope well with a loss of 500 euros.

Initial caution is also required with the selected levers. A small lever promises less profit, but minimizes the risk of loss. Beginners should start with small levers such as 3x or 5x. For example, the price may fall by about 33.3 percent with a 3x leverage before a total loss threatens. With a 5x leverage it is still 20 percent.

On the other hand, if you start with levers of 20x or 30x, you can lose your stake in no time if the price falls by 5 or 3 percent. Especially in the volatile crypto market, price movements of this magnitude are possible at any time.

Rule 3: Trade Strategically

It also often happens to beginners that they do not use a profitable trade effectively or even get back into the loss zone. Here are some useful instruments on the trading exchanges that can be used to trade strategically to hedge and make higher profits.

Especially important is the stop loss. The user can set an exact course at which the position is closed. If a price suddenly falls sharply down, the stop loss can prevent a total loss.

However, where exactly the stop loss is set also depends on the development of the trade. If the trade is already at a loss, the trader should set a limit on when the price must rise again at the latest so that he can still cope with the loss.

However, the stop loss should not be set too close to the entry position, as prices often show a countermovement after a small correction. So it can happen that the trade is closed in the minus, although a short time later it would have reached the profit zone again.

On the other hand, if the trader is already in the profit zone, the stop loss is a nice instrument to hedge profits. In this case, it should be set at least slightly above the entry point, so that the trader can at least pay his trading fee from the profit and will not make a loss with this trade in any case.

On the other hand, those who are already clearly in the profit zone should hedge a part of the profits. For this, the entire trade does not necessarily have to be closed. The Take Profit instrument can also only be used to close a certain percentage, e.g. 50 percent of the trade. The trader thus already secured 50 percent of the profits. If the price continues to rise, it benefits with the remaining position additionally. However, if the price falls, this is painful, since part of the profits has been hedged.

It is annoying, however, to take no profits and wait until they are completely lost by a correction.

It can also be useful to increase the position in a profitable trade.  For example, if a trader bets $ 500 on a BTC/USD price of $ 30,000 and the price rises to $ 33,000, it may be an option to bet another $ 500. If the prices continue to rise, the profit is now measured at the 1,000 euros used.

However, it should be noted that the additional bet also changes the entry price of the trade. In the example mentioned, this would shift to $ 31,500. Investors should therefore move their stop loss to this area after the position increase in order to prevent a loss in the event of falling prices.