First, make sure you always keep your emotions in check. Don’t act on impulse. If prices are starting to skyrocket, don’t assume that the rise will continue unabated. Most of the time, prices will spike and then pop. The same is true of price drops. Instead, step back, take a deep breath and then try to figure out what is going on. Analyze the situation and try to dig deep to understand why markets are acting this way. Is this just a temporary blip in the market, or part of a larger trend?
Second, you need to conduct a lot of research if you want to be a successful Bitcoin trader. There is no Wall Street Journal or Financial Times for Bitcoin. There are a lot of great smaller websites, however, so make sure you build up a stable of between 5 to 10 websites that you check on a regular basis. Monitor for developments and react accordingly, keeping a level head of course. You should never trust any single source, no matter how great it may seem, for all of your news and information.
Third, make sure you are careful when transferring money. The internet is filled with scams and Bitcoin is no different. We highly recommend that you use a reputable exchange, such as Mt. Gox, for all of your trades. Yes, you will have to pay fees, but the extra security provided is well worth the costs. This is especially true given how difficult it is to track people through the Bitcoin system (it is nearly impossible).