Most traders enjoy trading the Forex and CFD markets, but cryptocurrencies offer a broader mix of tradable instruments. Today we will provide some details about the best way to deal with the Ripple digital currency.
Discover the different aspects of trading the XRP / USD pair and apply technical analysis such as trend, momentum, support, and resistance.
The Ripple currency has shown an impressive growth rate since the start of this month. With solid bullish momentum, XRP / USD is moving quickly and aggressively. Due to such intense volatility, the CFDs in the XRP / USD pair, long positions are considered a safer direction to trade.
CFDs in the Ripple Currency?
Support and resistance levels are always aspects to keep in mind when applying technical analysis to charts. The concept of support and resistance becomes more critical when the pair shows volatility rather than a trend, as is happening with the Ripple currency against the dollar.
When trading technical analysis, it is always good to check potential market events or the release of macroeconomic data to create opportunities quickly. You have to be careful at these times, and we prefer to trade average trends rather than sudden highs. Traders who use technical analysis especially want to trade technically and avoid price movements based on unique events.
When trading short periods of the Ripple currency pair against the dollar during the day, the next step is to keep in mind the broad market direction. This is one of the main reasons for adding an exponential moving average to 144 periods on the chart:
* The price must be higher than it before trading in any of the day trading methods.
* If the price is below the moving average, you should skip any initiative to enter that session for a long time.
Of course, this is just a simple idea of how to approach day trading. There are many different types of trading methods that can be used to deal with the markets.
How to make profits with the Ripple
It is possible to make money trading the XRP / USD pair, but it is always important to realize that trading involves risks, which means that money can be lost. There are a few basic things to keep in mind when trying to make money trading ripple.
Psychology of Trading
It is important to remember that trading requires patience and discipline. This is part of “trading psychology,” and it is an important issue that needs to be kept in balance in your mind when approaching the markets. Other than that, you may be tempted to over-trade and suffer other risks that cause traders to take the wrong direction.
When traders risk too much, there is a chance of losing all capital or vice versa, with long-term solid gains. To avoid losing all capital, split each transaction into small amounts involved, such as 0.5%, 1%, or 2% of the equity capital. Thus, a series of losses, as a rule, will not lead to significant account exhaustion and will allow traders to continue trading.
Analytics and Strategies
Traders need to approach the markets with a solid trading plan that explains how to analyze charts, enter the market, manage and close positions. Each trader will have their trading style and will prefer different types of instruments and indicators. This is why it is essential to test your trading plan first with a low-risk demo or real account.