Is there any golden rules you follow in regards to investments? - page 2.

elektra

full member

Activity: 140

Merit: 100

Quote from: nativehasher on June 09, 2017, 06:01:55 AM

Quote from: AiWanChu on June 09, 2017, 05:54:17 AM

I try to follow "never sell at a loss" technique

This can be very dangerous. Make informed decision and take losses where you must. For example, if you shorted btc at 1800, it would be very foolish of you to not close it when price dropped to 1880 (and subsequently rebound to 2900) a few weeks ago.

And, keep away from > 1x margin.

Could you explain this more indepth please? I did not fully understand the example with the btc price. Also what is > 1x margin?

Also in regards to cryptoheadds post with"use stop losses", what exactly is stop losses?

oegarod

sr. member

Activity: 602

Merit: 252

I don't think there is no golden rules with investment. In my view investing with bitcoin is quite risky based on the price volatility, but the price increase happening with respect to time makes investment more profitable. Golden rule that I expect is buy low and sell high.

ktabb

full member

Activity: 266

Merit: 103

Quote from: elektra on June 09, 2017, 05:51:27 AM

Have been thinking about this for a bit. Are there any golden rules you follow as to not get speed blindness in regards to your investments into crypto? I have not read much about investing, but I imagine there are some "golden rules" out there in the space. With crypto it is a bit different though since it is so extremely more volatile than other markets.

But for example, if you own 10 different coins and one of them shoots up to the moon and is now worth 80% of your total investments, should you rebalance that coin as soon as possible to even things out again? Even if you believe in the coin and that it has potential to rise even further? Are there some rules like this you should set up as to prevent getting burned?

I have a set of rules for trading that I keep in the notes app on my phone, and any time I want to make a trade I check the rules to make sure I'm not violating one. I think it is important for every investor to have some set of rules that they follow because it helps take emotion out of the equation. Emotional investors lose a lot of money, so rules are very helpful in my opinion.

I actually happen to be writing a brief article about this right now, so maybe I'll link that here when it is online tonight.

One good rule as an example though is to never buy an asset at its all time low or high.

erickkyut

hero member

Activity: 1176

Merit: 509

Actually there are lots of rules in this forum every time I'm asking for an advice and those rules all have a point. Some of those rules are "Invest only what you can afford to lose" and "Don't put all of your eggs in one basket". There is also a rule for trading, "Buy when the price is low and sell when the price goes up".

cryptoheadd

hero member

Activity: 1022

Merit: 501

These tips are pretty helpful:

Quote

Don’t try to guess the top or the bottom: Take profit and use stop losses
Don’t be a believer: even though some coins might be good long term holds, the big majority of them aren’t. Assume everything is a scam and have a clear exit strategy.
Check the liquidity of a coin, there are people that are comfortable with coins that have 0.5-1 BTC daily volume. I am not one of those people. Make sure you can enter and exit your position easily.
Don’t chase pumps, everyone misses trades and that’s fine, just find a setup for your next trade.
Be critical of everything you read on Twitter: there are some good traders that make good calls but always assume they’re trying to dump their bags on you. DYOR (Do Your Own Research) They only tweet after they already accumulated enough themselves.
Get some trader friends that you can bounce ideas off. This will take time but is quite important. Don’t expect this to be easy as a newbie, when newbies approach veteran traders the veterans will be extremely distrustful since they all know how many scams there are. Don’t take it personal.

Check out the whole list on WhalePanda's website: http://whalepanda.com/index.php/trading/

nativehasher

member

Activity: 73

Merit: 10

Quote from: AiWanChu on June 09, 2017, 05:54:17 AM

I try to follow "never sell at a loss" technique

This can be very dangerous. Make informed decision and take losses where you must. For example, if you shorted btc at 1800, it would be very foolish of you to not close it when price dropped to 1880 (and subsequently rebound to 2900) a few weeks ago.

And, keep away from > 1x margin.

olushakes

sr. member

Activity: 476

Merit: 254

Quote from: elektra on June 09, 2017, 05:51:27 AM

Have been thinking about this for a bit. Are there any golden rules you follow as to not get speed blindness in regards to your investments into crypto? I have not read much about investing, but I imagine there are some "golden rules" out there in the space. With crypto it is a bit different though since it is so extremely more volatile than other markets.

But for example, if you own 10 different coins and one of them shoots up to the moon and is now worth 80% of your total investments, should you rebalance that coin as soon as possible to even things out again? Even if you believe in the coin and that it has potential to rise even further? Are there some rules like this you should set up as to prevent getting burned?

With the little experience and readings I have garnered on this forum as well as other sources online, the best way to go about investment is to be on top of your game by being timely at any point in time especially if you are into alt trading and don't believe in bot. First thing first is to put what you can afford to lose and after that research so you won't make money for the developers who is waiting for someone to come buy and pay him. And if luck comes and one coin shoots up, the best is to sell holding others constant because the nest minute their own bubble could happen and one could lose out.

unamis76

legendary

Activity: 1512

Merit: 1012

Quote from: elektra on June 09, 2017, 05:51:27 AM

Are there some rules like this you should set up as to prevent getting burned?

Never invest more than what you can afford to lose.

AiWanChu

member

Activity: 140

Merit: 10

I try to follow "never sell at a loss" technique

elektra

full member

Activity: 140

Merit: 100

Have been thinking about this for a bit. Are there any golden rules you follow as to not get speed blindness in regards to your investments into crypto? I have not read much about investing, but I imagine there are some "golden rules" out there in the space. With crypto it is a bit different though since it is so extremely more volatile than other markets.

But for example, if you own 10 different coins and one of them shoots up to the moon and is now worth 80% of your total investments, should you rebalance that coin as soon as possible to even things out again? Even if you believe in the coin and that it has potential to rise even further? Are there some rules like this you should set up as to prevent getting burned?

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