Topic: TOP 6 RULES IN CRYPTO TRADING - page 3. (Read 712 times)

I have to agree with this but I also have something to reserve. Researching on your own may give you the best idea on how the trading really works but sometimes the idea of others can help to especially those who are longed. I personally have some techniques that I learned from traders I found in youtube that is making tutorials and ways, but most of the time I really search on my own like histories,charts etc. which I find more productive.

I think that the order should be placed that Rules # 3, 2, and 4 should go to 1, 2, and 3 respectively. I'm just surprised that you all out started your guide on telling the members to create their accounts first before even have any kind of knowledge about trading. That alone could make them lose all their money with the lack of preparation and proper knowledge they have with regards to crypto trading. At least if they started everything by studying, knowing not how to panic, and of course financially planning it they'll be prepared to what is ahead on their upcoming future trades. So for members reading this before you do any kind of trading I would advice for you not to trade first but to learn and know how to prepare for it.

Not only full time traders have it mandatory to make immense research but you should even try to make as much study as possible even if you are treating investment as a part time source of income. Knowledge is deep like an ocean and you could never ever measure the depth just with some buckets. You would need to drain into the ocean to know its depth.

The same goes with knowledge. You have to study as much as possible in order to make profits from the trading markets. There are a number of books available on the internet which would boost your trading knowledge. You should always try to learn as much as possible because knowledge is never achievable. No matter how experienced you are, you would still lack in knowledge.

There is only one rule:

Ignore anyone who blabs on about how to trade.

I am always saying this because, for me, this is the most important.

As long as you are continually investing and trading, you could still learn a lot even if you say that you are an expert. So if you are an amateur, don't stop reading books, be active on every updates and always keep your head in the game. I know this might be hard for everybody since not all of us are full time investing like me but still, you could do that.

Don't be greedy to chase your profit if you don't see a chance to buy low and sell high because that can make you get to lose. I see many people feel comfortable and confident when they can get the profit, so they are trying to enter the market again to buy at a low price and sell at a high price. But the fact, the market cannot always be as what they predict because many times we see the market is not down, but it increases higher after we sell the coin. That can make us buy at a level price, which can lead us to get a high price because the price can get down below the price we obtained.

But all of those rules need discipline so we can prevent the loss that can happen anytime. So we need to be careful when we analyze, make sure we can prepare everything, including if the market moves out from our expectations.

Nice write-up. I found at least 5/6 of your tips useful and quite resourceful. Rule #5 for example. This is tough especially when you're in a trade and and it's  on an uptrend. You're posed with the decision of whether to settle with the profits you're already in, or wait for an extended time to get more profits should the uptrend continue. Sometimes it doesn't and it goes the other way instead. A friend of mine was indecisive about selling his holdings and making $170K but thought it would hit $200K before he sells. But then it didn't hit. Instead he only managed to get out with about $20K.  Moral of story? My point is not to get greedy when times like that happens. It's common in the market.

Nice write-up you put out here, i can't deny the fact that the entire post is insightful and educative as you can't just finish learning cryptocurrency market. However, the cryptocurrency market is too volatile and i guess that's why the whole sector is still battling to be accepted by everyone out there as means of payment. Your rule #6 nailed the whole thing needed in trading and investing in cryptocurrency market. Putting all your hard earned money in this market is more or less like gambling with your entire money. I think more secure and safer investments options just like the ones you listed are the ones worth locking one's investments in for long term

This reminds me of the guy that was asking whether he should recommend to his friend to borrow a loan and trade in cryptocurrency. That’s the worst idea man, people shouldn’t be taking loans to trade cryptocurrency, you might end up in loss and won’t be able to recover it and pay back. And along the line you might be tempted to invest extra money from that loan to recover what you have lost, but instead of wining you might even end up losing the rest.

So, it’s not a good idea. I have never taken a loan before, but if I decide to take a loan it wouldn’t be for a risky thing like cryptocurrency, I’d rather look for a better business to invest my money.

All of the rules were valid, it is just depends on the trader how to follow it. Lately, I forgot to so do some stop/cut loss and that made me liquidated. So, it is best to always remember to set stop loss in every trade. We don't know when the whales will gonna mess up our trades that is why stop loss is really significant.

Be SPORTS.
Trading will make you win or lose. When I lose, i accept it and proceed another entry. What I mean is that I trade only with amount that is okay whether I lose. Mistakes can be our tool for success.

Also, when you tend to FOMO and panic, the more you become deficit. I have proven that many times.

Stick to your own TA.
Ex. Listening to other's prediction and you are panicking and you change your entry, most of the times your own technical analysis is the one you should follow because it happen at the end.

a little extra, maybe the seventh is patience. in the world of commerce, sometimes people want to get rich quickly, it's because they see the development that other people are doing faster than us. Well, keep all that, and be patient with your own assets. there will be times when the assets you have have a high price, it's just that the conditions you need to fulfill are, the coins that you hold are really the assets used to date.

This Rule #6: DIVERSIFY of yours is kinda biased since you are in cryptocurrency forum, some the people here might disagree on this and probably say, diversify it on also some cryptocurrency just like altcoins, not totally in Bitcoin. But still, you have your point, whole INVESTMENT PORTFOLIO.
Even me, I don't have anything knowledge on some stock/bond market; so it's kinda difficult for me to start diversifying it but thanks for your advice since I also heard this before on some people.

You stated it well OP and if every trader will follow these things, they can be successful.

And the challenge is on how to be consistent because it sometimes we can hardly manage our emotion and brought something different in our decision making. That is why some( maybe all) traders never go in a smooth trading experience but they suffer hard times in here before they succeed. And the most important in trading is to focus on what we are doing, this could help you to decide what is right and what is good for your trading.

This is the hardest thing to control. Even though I have done the analysis and determined the crucial points when there is an unexpected movement it will definitely create shock therapy. Concerns about falling prices and the difficulty of the bounces make this panic even more, which is why sometimes we need friends to discuss, of course, who are trusted and experienced in this matter.

That's right, and the strategy needs to be trained. Especially when the feeling of greed to get more profit dominates the analysis. I have experienced this and ended up losing money because I forced myself to enter the market. This is proof that trading requires complex knowledge and experience.

In my opinion, it is understandable that there are just 5 rules here and Rule 1 is considered not a rule at all.



Rule 2 is just what I am doing most of the time if I am not confident with my investment I will not make a trade on it, but some other time there are some trade that not go your way so it is alright and move on with it, and starting small is what I used to do.


This rule is for newbies! it is the first basic thing to do when starting on trading in a volatile market, and as a newbie, you will need to know the meaning of volatileness for the start. 


totally agree with this, there is a solution to losing your trading and that is to move on, know the risk before starting that is why for newbies I think to know the word volatile first because that's cryptocurrency probably is after all.

I think this is the hardest part about trading, let's say we buy btc at $10k then it goes up to $12k , at that moment we are 20% up, and if it goes down to $11k we are in profit of 10% but at the same time, we are in a loss because it goes down to 10%. That's what we call to take your profits and cut the losses. Is a smart move to get down from the boat before it flood.

Rule #5: TAKE YOUR PROFITS, CUT YOUR LOSSES

I tell you this is an important point of trading because is all about the additional money coming in as profit. We have to understand when we should move away with our profit because the market is not our friend, it can turn against you when you waste too much time.

So you want to make some money through CRYPTO TRADING?

Good, it’s about time…let me introduce you to a few simple rules to follow:

 

Rule #1: BE IN THE GAME

If you want to earn money in CRYPTO TRADING you have to be in the GAME! It means set up an account and start trading! I hear so many people wishing or day-dreaming on how one day they will invest in BITCOIN and make loads of money or just enough to quit their annoying job but never do anything about it. Stop being on the side lines and get into the wonderful world of crypto trading.

 

Rule #2: DON’T BET THE FARM ON IT

Or “ Don’t bite off more than you can chew” or whatever phrase you want to use. What I’m trying to say is don’t invest more money than you can afford to lose! I hear so many horror stories about people taking huge loans that they clearly can’t afford and putting it all on some anonymous alt-coin. Eventually, they pray that it’s not a scheme and hope it will rise in price all while looking how it plunges and never comes back. Be SMART! Start small and build your understanding of cryptocurrencies until you feel confident enough to invest some more! But never the amount that you can’t afford to lose, which means that even if it’s all gone you still can get a good night sleep with your beloved teddy bear.

 

Rule #3: STUDY, STUDY AND STUDY SOME MORE

Probably the most important rule, you have to be a student of the game. What I mean by that is that you have to find a couple of reliable good sources (*ahem* WHALETANK *ahem*) and educate yourself about CRYPTOCURRENCIES, CRYPTO WALLETS, BITCOIN, ALT-COINS etc. It’s a MUST! Without it, you are like a fish trying to climb a tree…not the best analogy but whatever, you know what I mean!

 

Rule #4: DON’T PANIC!

If you follow great leaders and investors in particular, you will notice that they never panic! They keep their cool, no matter what! They’ve been there, they’ve done that! They know that cold analysis and pure logic beats emotions every day of the week! So whenever you think you face a dire situation know this, there is always a good solution to every problem!

 

Rule #5: TAKE YOUR PROFITS, CUT YOUR LOSSES

Fear is bad but Greed is even worse. Towards the end of 2017, lots of investors became greedy and felt they were rich because they caught a bull run which they thought would last forever. Unfortunately, they overheld their positions straight into the “land of bear markets” and now waiting for arrival of their express train to take them back to the “jolly bull era”.

Conclusion? You profit only when you realize your gains by selling at the right time.

Vise Versa, if you no longer believe in your investment or swore to cut losses at 20% then do it! Believe in yourself and your system, you’ll earn more money some other time on another coin!

 

Rule #6: DIVERSIFY

And I don’t mean your CRYPTOCURRENCIES PORTFOLIO but your whole INVESTMENT PORTFOLIO. Putting all your hard earned cash in a volatile market as CRYPTOCURRENCIES is a huge mistake! Investing up to 10%-15% of your portfolio in CRYPTO considered safe! The other 85%-90% consider to invest in more tangible assets like GOLD, REAL-ESTATE and the STOCK/BOND MARKET.



If you feel confused and don’t know how to invest in the exciting market of cryptocurrencies, just subscribe to our FREE WHALETANK CHANNEL and give it a try, I’m sure you won’t be disappointed.