Topic: Ten commandments of trading coins/tokens (Read 126 times)

The present market situation seems to have turned almost everyone into traders. Even newbies want to start trading.
There are times that if you do not understand the rudiments of trading, you might fall victim of loss, which might occur every time if care is not taken.

1. That a project made it to the exchange doesn't guarantee it is not a scam, never fall in love with a project that it would affect your clear judgement.

2. Don't always be in a hurry to acquire a token, that it is pumping now doesn't guarantee it won't dump, be patient, observe and set a low buy order so wait for it at a good point of entry, don't chase green candles, you might get your hands burnt.

3. Never trade on sentiment or feelings, do your research before you invest in any project and always take calculative risk and don't invest all your funds in one project

4. Be conscious and cautious when setting your buy or sell orders, the zeros are very important, a wrong price set can make you lose a great deal of funds

5. Be intelligent and teachable when it comes to different exchanges, before you send tokens to exchange, the minimal amount to send, the withdrawal fees and charges, the time of processing, delivery of assets and funds and other details necessary to be added to your fund while sending to exchange (For instance, if you want to send XLM to OTCBTC, you would be given MEMO ID, that would accompany your transaction), you must be familiar with that before deciding to trade on an exchange.

6. When a token is pumping, sometimes it's the team buying the high orders to push the price up and when the amount of btc or eth on the buy orders is high enough they will collect your btc or eth in exchange for the tokens, the reason for swift dump, setting a low buy order will cushion the effects for you in this scenario be wise.

7. Which ever means you use in obtaining your coin or token (through ICO, airdrop or P2P) etc) be swift to know which exchange it's trading and when to move them there, when to buy more to increase your profit and when to sell it all to exit the red flags.

8. Between Holding a coin and selling it, personally I would choose holding it but be wise enough to sell off 50percent to not be left out of a moving train.... Talking from experience here.....

9. Be careful in choosing the coin to trade with. Some coins can be traded continuously for long term, while some are for short term trading. Take for instance PKG, TRDT and WAB, these coins are for short term, but the likes of XLM, ONT  and so on are for long term.

10. Avoid being greedy. Always take your profit no matter how small it is. You never can tell when bear will set in.

Suggestions and corrections are welcome.
There is no highland of knowledge.

Thanks.

BE GUIDED