Topic: Rules of trading and following to others read plz (Read 155 times)

Blindly following someone is not a good idea but following an expert is a better idea to do if you don't have any good experience but we must not rely on them forever. We must study on our own too because we never know what happens later on. What if those professional traders quit or their performance deteriorates overtime?

It's always better to have something in back up so that we can still continue earning and we won't go back to zero, finding good traders again as that can be a hard task and will take us some time hunt them. In your last sentence, you mentioned DCA there but I think this was only applied in investing not trading.

People who think that there are rules, and people who know the difference between rules and what to look for, are the most different type of people as it gets. There are no rules, there are things that you need to be careful about, like for example don't chase your losses, or do not trade if you do not know what the wall is and what the support or resistance is, you have to be careful about somethings when you are trading and that is the most important thing that we could be careful about.

I personally trade with no "rules", I look out for things that could be dangerous when trading and if any of them ever pops up, I go around it and be aware of anything that could go wrong.

You should not follow anyone while trading. It's only advised to learn from them, and you can compare your results with theirs. That should be all. And I think every trader here knows that. One more thing to add is that don't use money that you can't afford to lose while trading. With this, if you know the basics of trading, then you can start from there.

Also DCA is a great option if you learn it perfectly.

As a newbie, its better to do DCA as your temporary strategy while you are still learning, but let’s not discourage them from doing trade, because in time they have to experience it before they become a successful trader, losses are normal all they have to do is to do their own research and learn from every trade. Following others might be ideal for short term, though its not applicable to everyone. If you want to take trading seriously, then start doing this the proper way and learn every aspect and process of trading.

That's really surprising that someone is still following someone blindly in the crypto market. I can't imagine myself following somebody when I am in the crypto space. In fact, the whole story is the opposite of this and I would care less to copy any investment plan thrown at me just like. Since the beginning crypto has taught me such lessons and made me lose money over time. I have stopped getting advice from anyone in the crypto sphere because it is a game of blame rather than helping out each other.


I am already doing DCA because that's what keeping my BEP to the lowest possible. Having the average below market price is best way to tackle any sort of inflation or bearish trend that hits the market over and over again. In fact I started my DCAing since more than year now and I am doing just well.

Only sometimes I am selling my chunks for emergency cases but making sure that I again bring down the prices in my portfolio whenever I see an opportunity out in the bitcoin market.

The greatest thing in trading is there are no general rules to follow, we are the one who are creating our own rules in order for us to have a guideline and criteria when we are doing trading. As for my guideline or my general rules, I only do long position where for me to earn money is to buy low and to sell high, shorting is not my thing so I avoided it because my win rate in shorting is too low where my assets are keep decreasing because of shorting.

I also avoiding putting too much margin in a single trade for me to not be attached to a certain trade, I'll usually think I'm right even though the market is telling me that it will go down any time soon. So in the end, I may lose money. It is better if we have risk management when we are trading some assets for us to not be in pain if our trade did not go as we planned.

I do not recommend copy trade the way other traders trade because it does not guarantee we can also get profits like them. And if we just imitate without analyzing, we can get stuck in a condition with a bigger risk than we thought and we can't save ourselves and will instead lose money trading.

And if you don't have time to learn more about trading, you should invest using the DCA method because it will be better for you. You don't need to be confused about analysis. You just need to find the lowest price to buy and hold bitcoin. Trading requires skill and expertise so don't take too big a risk.

Trading is like gambling, only guessing the price goes up or down. it is more towards futures trading which is just guessing between two options.
If you do spot trading, it will be safer because if you guess wrong it will only hold you back for the long term.

Managing risk, and several strategies must be implemented so that trading can be successful and make a profit.
Many beginners trade without a strategy and in the end, they lose because they cut losses because they panic.

Using the DCA strategy is quite recommended because it is a simple strategy and only by setting aside money to start investing regularly according to the specified timeframe.

To find out how the market works, we must be able to read market conditions, be able to determine when to enter and exit.
It is basic science and must be learned, do not expect other people's strategies, some of them will only mislead.

I think one of the reasons that you could have two positions not running is the margin level remaining at the time the second order was triggered. You need to have an adequate liquidity for you to sustain simultaneous trades but if you have enough liquidity I think the trade will go on. The system however is programmed to take off a trade or close it automatically when the account has no corresponding liquidity for the additional trade.

Is this even possible? The exchange I’m using will just allow you to open a position in one direction. Let’s say you have open long position then placing a short position will just close your long position or part of it whichever has the higher margin.

I doubt that this double position is working like you are saying because Bitcoin has high price swing which means it can reach your upper and lower SL at the same time on both of your position on a volatile market. Opening a single position with stop loss is still the best rather than doing your method because it’s risky to get a double stop loss. When you hit stop loss then re-evaluate for the next position.

Having your own strategy, rules, and conditions for entry is simply the best way to trade. there's no perfect place to buy or sell as we are not in control of the market movement.
Too much trading isn't good and most times it happens as a result of a trader incurring so many loses at the beginning of the trades and trying to catch them back, which actually results to losing more.
Not every Support and resistance is strong and can hold, always look to buying or selling in areas with the highest probability of holding .

I just want to point it out that these are very good spots to trade. If we don't over trade then we are as well likely to control our emotions and take adequate decision that will land us in profit. Also the resistance and support levels are crucial to execute trades but the problem is some times we don't follow these steps because of our personal speculation and judgement of the market, we trade wrongly and also get punished for it 

People tend to believe that there is a guaranteed way to profit, and these analysts play on this sensitive chord. By convincing people that a person can accurately predict the price and thus guaranteed profit, you can make him involuntarily ignore all the times you were wrong.

Instead of trying and experimenting by yourself, following these people is more comfortable for the brain, because when you lose your money, you will blame them and stop following them, but if you use your mind, then you will feel regret.
Therefore, you must keep your feelings away when you want to trade, otherwise you will make a loss.

1. There is a third option. The market will go in one direction, and a margin call will close your long position. Then the market will reverse and close your short position. You will end up with both at a loss, which is a very possible scenario with high leverage.
2. If you open a long and short position, your net position is 0. That means it's like you did not open a position at all. So why pay fees for doing so? You can reduce costs by simply opening long where short would be closed and opening short where long would be closed, which is the classic buy when support or resistance breaks.

There is no perfection in trading, the trader you see this week with an almost-perfect result might have a changing month in the next. This is why it's good to think beyond having a good strategy as a trader, the management and good plans are the main preserver of any trader's account. One should know the limit and strength of their trading system to be able to do this, and such would be used to plan the management to use.

This should be done to the point that the success would be foolproof. 

Using BTC/USDT futures, you can go up to 100x on exchanges like Kucoin, 125x leverage just like on OKX and Binance, you can even go up to 200x on exchanges like Huobi global. Advising people to go for high leverage is wrong because the liquidation risk is high. The last time I use 10x for bitcoin which I was even afraid of was when bitcoin decreased to $15500, when it increased to $16000 and seeing strong support at $15500, I opened 10x leverage at $16000. But right now when I do not know what would happen, going for 3x or less leverage is better. For scalpers and day trading, I will not also advice anyone to go more than 5x which is even too much for me, I always prefer 3x or less for bitcoin while 2x or no leverage for altcoins.

Just becouse someone predicted 1-2 things right or Even more things right doesn't mean you should blindly follow this trader always.
If you trade too oftet (specially with futures) you have high possibility that trade don't go your way.
The less you trade more info you collect and calculate possibilities before you execute trade the more possibility that trade goes your way. ( Don't over-trade)

If we talking about btc and crypto trading then best entry points are possible support , middle,resitance the top.

Just for example:
This month of march btc mid-level price would be around 22,000-22,500$  i use hedge it means If btc is on that level i Open long and short positions and it worked out well.
Becouse the Market is at mid price level so one way either short or long Will break out and go further while the opposite position will be closed by the stop loss.
For this trading stradegy you can use kinda high leverage.

If you trade becouse you try to think wich way the market goes it's more like gamble you need to have plan risk managent and stradegy what works any ways.

If you not experinced then you should just DCA by using that small % of capital of your total ammount of cash so you not gona run out of cash.

Even the most well known experts can be wrong so newbies tend to be following others blindly just becouse they got 10 trades right doesnt"t mean you can lose all your safeguard.