1. Never trade against the market trend. The market trend is king, and attempting to trade against it is a recipe for disaster. Following the trend allows you to capture profits and avoid unnecessary losses.
There is a famous quote when it comes to trading, and that is "The Trend if your Friend."
Well, we have futures already, so betting against the trend is still a good thing if you are a good futures trader. Overall, following the market will give you profits especially when you are doing spot trading. As for futures trading, you can still get profit even though you go against the trend, but it would be better to follow it.
2. Stick to your strategy no matter what. A trading strategy is a roadmap to success, and it's crucial to stick to it regardless of market conditions. Deviating from your plan leads to impulsive decisions and missed opportunities.
"Stick to 1 strategy."
Always, always stick to only one strategy that will help you get profits. I mean having more than 1 strategy would be better, but as for me, I don't want to complicate things because that will make me stressed while trading, and that might lead to some unnecessary decisions that can make me loss money that's why I always go to only 1 strategy that I know will help me get those profits.
3. Use technology to your advantage. Emotions can hinder a trader's ability to make sound decisions, but technology can remove this obstacle. Using a
crypto trading bot that operates on pre-set criteria ensures that trades are executed objectively and without emotions.
TBH, I didn't ever tried using bots when I'm trading, but I've heard some good and some bad comments from it.
Overall, I still prefer going for manual trading instead of using bots.
4. Listen to industry influencers but form your own opinion on the long-term direction. Industry influencers can offer valuable insights, but blindly following their advice is a mistake. It's essential to conduct independent research and form your own opinions about the market's long-term direction.
If they're shilling a coin or a project that you don't know yourself, don't follow what they are saying, and do your own research.
There's nothing in following these influencers because after all, they are contributing, and sharing some knowledge to the newbies, and to us as well. I've been following some crypto influencers for years already, but they're not shilling any new project or coin at all.
5. Risk management is critical. Managing risk is essential to a day trader's survival. I always set stop-loss orders and avoid over-leveraging my trades to limit losses and protect my capital.
Stop-loss and take profit are very important when it comes to trading.
Always set a percentage where you will take profit at this particular percentage, but at the same time, also put a stop loss. Whenever I'm trading, I always put a stop loss, and take profit right after I enter (futures trading).
Bonus tip: Keep it simple, don't complicate your trading even if it looks cool. It's easy to get caught up in fancy indicators and complex trading strategies, but simplicity is often the key to success. Keeping your approach straightforward and easy to execute will lead to success.
Making things complicated will make you overwhelm during the process, and that can make you do some bad decisions along the way, and if that happens, you have a high chance of getting lost. Overall, just pick one strategy that will help you along the way. Always keep it simple because you can think way better if you do it that way rather than thinking many things that will affect your performance in trading.