Topic: Top 5 Rules For New Traders. (Read 296 times)

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I think this is the most important we must understand and control it. Because if you mastered technical analysis and fundamendal but you can't control your emotions i think you decisicion will not 100% correct. So if we not in good mood maybe we can take some relax times have smoke and drink until we can get refresh again.
And maybe mostly new traders are they think that trading is so easy that anyone can do it without learning. And then when they lose start learning how to be good trader. So never to late to learning and doing practice more and more..

Just as an addendum, avoiding emotional trading doesn't mean you don't sell when the prices drop. It means you don't sell just because prices dropped. You study the situation and make an informed decision. If selling makes the most sense, you should go for it.

I agree you can make decent profits if you join in time. The thing is you will need at least a little bit of experience to be able to make those right decisions.

Furthermore, these are tips for new traders who are unlikely to have any trading background/skills.

In short, a lot of reading and practice.

ITs big point. I mean you should follow that not only in trade but in business in general.
Hurry up, you will miss opportunity, never follow that, its scam 99% of times. People fall for that all the time because they AFRAID of missing out.

Be smarter than that.

The first rule of anyone interested in trading is to practise and learn the rudiments of trading. There are many aspects to trading and a potential trader should know how to read charts and predict the market direction.

If you are a fast follower you can join such a train and make profits at the top, before a drop. Buy once it's already a bandwagon, it's too late. [/list]

A few suggestions:

• Never buy into coins that are being actively shilled around the web, the time to get in has been long gone, as whales have their bags full at much much lower prices.
• It's never a bad idea to diversify your trading portfolio, also be patient with different tokens as they don't peak at the same time.
• Be familiar with market cycles.

The tips would definitely help newbies to get themselves familiar with the crypto environment and to add my two Satoshis, I would recommend that newbies should invest their time before investing their money to learn more about it. I have lost my entire capital multiple times in my initial days of trading just because I used to trade based on the random tips (which is never recommended), one should do his own research before taking any decision as crypto is all about self responsibility.

I guess the emotional factor is the hardest part, I was expecting you to talk about a reasonable stop loss that should be set at all times.

A good starting point to become a good trader is to try a strategy without investing real money, it will help you to be more logic in all your decisions. Then if you are convinced your strategy is profitable, invest real money. But do it only after a high amount of trades, placing 20 trades is not enough.

You are absolutely right.
In addition to crypto currency, I trade on binary options. I 100% know what emotions are. When you think that you are the God of the market, but in reality you are a pawn. And when you have 5 minuses in a row, then you panic. This is what I know very well. So friends have patience and follow the advice that the author offers.

Sometimes there is a dilemma when you see that the market drops hard and you need to take some actions. You were not ready for this eventuality and we can call it emotional trading, but in the end it can save some part of your assets.

It is important to have a plan going into a trade. No matter how good your analysis and how rational you usually are, once you open a position and your money is at stake, the stress does strange things to your way of thinking. Taking a loss becomes harder, and taking even a tiny profit looks very attractive. If you give in to that, your losses are always much bigger than your profits, and simple logic

Yes, this is a basic principle that every trader should do. The implementation of this advice is setting stop losses and/or take profit right after you make the trade. By having SL/TP in mind, it proves that you know what you are doing, what risk you're taking, what's your target, etc. If you don't set those tools, ask yourself, are you trading or gambling? Always start with the end in mind.

Hello!  I read these rules in books about trading.  Under each of them, I described something - as I understand them.  I often re-read them when trading.  They help me to be in good shape.  I hope will be useful to you.

1. Do not worry about missed opportunities.
 It often happens that you are fixing profits, and the price continues to grow, in this case the quote #2 is ideal.  But it happens, you watch the asset, you want to enter it, but did not dare.  The asset has grown over time ... Yes, this is a missed opportunity, but in such situations it is important to draw a conclusion and continue trading.  It is impossible that the sense of loss you possessed, it will greatly worsen your sober view of other possibilities.

2. Never follow those assets that have already been sold.
 This is important if you have decided to sell - then sell and do not follow it, better look for another entry point on other assets, because such situations cause a strong sense of loss, and emotional trading .... Read the following quote.

3. Emotional trading is the enemy of the trader.
 When emotions: (fear, greed, feelings of loss and hope, as well as other emotions that can be caused not only by the market) you can NOT sensibly assess the situation on the market and a very large risk of making the wrong decisions, therefore it is always important when you work - to be cold and  emotionless.

4. When you lose - do not lose the lesson
 Any loss of something is worth, in the case of trading every wrong decision is worth your money.  Take it as a lesson for which you paid, do an error analysis, write in a diary and move on.

5. The best time for decisions is before opening a deal.
 Prior to the opening of the transaction, it is important to analyze and consider all the probabilities of price movement so that you are ready for each situation.  When you will know in advance a clear plan of action - it will not cause unnecessary emotions and you are more likely to make the right decision.

I apologize if I made mistakes somewhere or used wrong speech. English is not my native language.
Thank you for attention !