Topic: TOP 6 RULES IN CRYPTO TRADING (Read 689 times)

Personally i following a youtube channel(Oracle 100x Leverage Trading) this guy always teaching very special thing and i surprised to see those tutorials though he isn’t big crypto enthusiast. Last year i trying to trade after a while i am gradually lose control for too much panicked. I learned to this point, i agreed when i will make profit then will should cut my previous losses. Anyway i appreciate your advise.             

Still it must be a mandatory requirement of profitable trading. You must need to remain indifferent while trading compared to your real life. Moreover, controlling our emotions is highly recommended even in real life as per doctors by this, I like to indicate like if you are able to control your emotions then you may able to control even in trading. It means that you do not need to be different person just for the reason of trading.

I just doubt that any rule can help a trader to be profitable unlike otherwise they do them by heart. I mean all those rules should become as part of habit then it will be possible traders to be profitable which must be possible only through experiences.

Real talk and this is an inevitable thing for all people to experienced on when they are on the situation where emotions are involved.Yes, you can read up all the things when it comes to
analysis and other peoples experiences and apply it to yourself.Lets put that you are aware but you cant avoid to commit mistake when emotion will boggle out everything.
All the things you have in mind will surely changed up and this is where self-discipline and experience would matter.

Add to the list
always use stop loss
do not trade with a leverage of more than 10 x even if you are a professional

It is difficult to remain indifferent when it comes to money. During emotional outbursts, people act impulsively, on reflexes,
based on the neural connections that they have developed over their lives, in other words, on automatisms.
Awareness comes only later, when a person comes to his senses after a certain time.

Before you join the game you have to learn about the game and know how it works, when you don’t know how it works, you joining the game is of no need, you have to be quite sure of what you’re getting into and also check stories of those that have been into and get some clues, so that you will be very sure of what you’re getting into.

Your second point is 100% right. I’m even surprise that I still see a few stories of people who say they bet their whole money on it it makes wonder if these people really know what they are doing. How do you bet everything on something that you’re not very sure of. Anyone that tries that and lose their money will end up regretting. It’s always best to start small and grow.

I've seen a lot of rules or guide on this forum a hundred times before and they were almost just the same. Well, you could just find them here if you have a spare time to search it that would be great. It's a good guide for any amateurs who try to do trading with a little bit of knowledge but for those newbies there are tons of guide too here and I think if someone could make a list of these threads that might be useful.

This is one of the most educative post I've seen on this forum in recent time. Your write up is insightful and i must say it consists all the rules needed to get someone safe while trading cryptocurrency. Your rule number one nailed it all as I've came across people who aren't into cryptocurrency trading yet daydreaming of how it will be possible for them to make load of fortune when they invest in bitcoin and when most of them does, cryptocurrency dip do catch up with them and they end up leaving this space sad.  Understanding the rules you listed are the orientation needed to help someone have a prosperous trading experience

You have forgot to mention about Being Greedy?because this is what most reason why traders become a failure because of greed in their heart and mind.

Never Become a Greedy Person

If you want to be a successful trader then try to accept smaller profit each trade and hunt another one again to buy,just be contented in at least 3-7% profit and don't just look in Pumping because there can be a faster Dump happen at the same time.

Controlling our emotions are important especially if we want to become an advanced trader. People think that controlling emotions are easy but the thing is, it is really hard and many people fail to do it. We should always evaluate ourselves before, during and after the trade in order for us understand more ourselves and to know the feelings and emotions that we have when we do trading. The risks can be lessen if we know how to improve our trading psychology.

I guess even successful traders experienced it. Emotions are very very hard to control most especially when what's at stake is a little higher that you don't want to lose it. The amount of money matters most when it comes to affecting someone's emotions. An known emotional person that wants to try trading better risk a small amount of money.

Everyone does as I believe but it is more different when you in an actual scenario. We might say that is easy to control our emotion and we have already a plan but something it is really hard to be consistent with it especially when we are in the hard times. The only thing that could help us to be with and stick on the plan is to keep calm so we can make the right decision. This is a common failure that most traders struggle with.

you said something that everyone should hear and follow

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OP, if you read my post I would like you to answer the following questions:

how long have you been doing trade?

what was your profit since you started trading?

what is the strategy you use in the practice that brought you results?

i think manage your emotions needed there... if you fell bad dont make decicions or play crypto trading because its can broke your emotions then can make lost your money.. exsperience very helping there...

Diversification is a very good tactic in cryptocurrency trading, but if we invest in too many cryptocurrencies at the same time surely we will be distracted and difficult to control the portfolio of yourself.
I think it's best not to invest beyond 10 cryptocurrencies at the same time.

Before entering into trading, everybody will set up some rules and regulation of their money. Once the market situation changes, it is impossible for us to follow the rules and regulation, I tried myself to control my emotions, but once the prices start decreasing, it is impossible for me to follow my beginning rules and regulations.

Always allow with rule when trade bitcoin and altcoin but suddenly you miss out your opportunity during bitcoin have lower price, some time you can hold bitcoin but you need waiting when bitcoin really back track to higher price with good moment and best way for investing.

Tell your friends to watch actual video tutorial on how to trade in crypto space, since reading won't be enough because it would always be better to visualize every actions a pro trader make.
Also, trading requires experience, a lot of experience. You won't expect to earn handsome profit at least during the first year of your trading career. If you do, then consider yourself a talented and skillful trader.
Nevertheless, everything in the OP is an essential step to lessen the risk of lossing money.

this is a common failure for most of us.
Well, I can't deny that it sometimes happens to me and even you. No matter how strong you are, how optimistic you are, losing such controls is often to happens since we are just a human and such a feeling that we can't rid from us.

#Diversification is another way to be in trading. Not usually I'd use it but this is only applicable when you have noticed that you're not gaining anymore to that certain coin or its market flows never work great. Of course, why sticking to that and we know that we can't expect this coin to have returned. Better to give up and sell it then invest to another one which we believe that could give us ROI.

In my opinion, Its safe to say that well known traders don't panic compared to beginning - intermediate traders. Why do I say so? Like OP said, They've seen different market cycles, they have also seen the market evolve multiple times. There's nothing new to them anymore – no surprises too. I mean, These are traders that have mastered how to keep their emotions in check during green and red days.

That is one property lacking in new traders. When faced with a similar situation, they either panic or freak out. One thing is clear at the end of the day – trading goes beyond just reading charts and following news updates. It's deeper than that.

Even on a green day, New traders can panic and get overwhelmed by the profits and then end up losing it all because they couldn't control their emotions.

How do you know well-known traders panic or not?
Are you close to them at the moment when they make difficult decisions or at the moments when their market forecasts turn out to be erroneous and everything goes wrong?
I don’t think so. You just make an assumption that can easily be erroneous, and boldly give out typical advice. It's easy to say “don't panic,” it's hard to explain how to do it.

These are 2 things i do see which is more important among on to those things mentioned above.
You shouldnt stop learning and this is a must thing if you do like to sustain to this very unpredictable market.
Learn everything you can and gain experience as you trade because the longer you do engage yourself to this market
the more knowledge you will get and continue to explore everything.
This cant be avoided but somewhat can be controlled and thats why experience would be the thing which would stop
decisions when your emotions are trying to control your mind.

I think the most important rule in crypto trading is to control our emotions. Most of us can't control our emotions and often encounter fomo, which makes us lose money.
So if you want to invest in the cryptocurrency market the first thing you need to win is your emotions.

I can add a rule that is never invested beyond what you are willing to lose. Everything can happen in the cryptocurrency market, you can make a big profit or you can lose everything, so invest with caution.
It is best to invest only part of your assets in the market and it should not exceed 50%.

It's instinct and self understanding where every traders believes in, if you are willing to take chances then you can proceed and take your position.
If you are not that familiar you need to work with every information that you'll be able to get from every available sources.
Create your own rules and follow things according to your on assessments.

surviving in trading is must is what makes trader to be successful , while surviving in trading gaining experience and not repeating the mistakes and managing money is a trader learns all this then he will be in trading making money in future

A trading is a good way to earn money and one of the favorite choice of the crypto user until now because many of them are earning by doing it. Startegies is one of the technique that a trader can possible can use to not losing their money.

Actually there is no rules in the crypto trading it depends on the trader what they follow or what they think is the best of them but it's still good because you are sharing your knowledge about trading so the beginner trader will prevent losing money.

Indeed while it seems that he is a bit safe trader as he tends to put only 10-15% capital in crypto but the fact is that crypto swings too hard at times and beyond average trader's nightmare and it is always better to have small part of your capital into trading because the rest 80-85% will act as bankroll once you are down and avoids things like loans because nothing can be worst than taking loans to trade so just save some funds and use it as self loan during tough times and make sure you repay back to your bankroll once you make profits.

Trading is one thing where you would not realize how much money you are putting into and how much has evaporated just because you keep putting more money from other sources and do not realize that you are giving more losses than profits in extended run.

You know, the 1st point you mentioned is so funny but extremely important because I see how so many people discuss about trading and how to be successful but they are still not trading and hesitant because they feel like they are not knowledgeable enough while the truth it, you won't be perfect from day one so just start and improve than than trying to be perfect first then start.

All the points made are excellent but I would love to add a point which I myself prefer while trading:

Cover your loss but be greedy too: What this means is suppose you had a loss in previous trade then yes try to cover the profit by selling other coins/assets at probably lower price than expected but when you see potential price increase just be greedy and hold a bit longer too at times.

Take your profit and cut lost I think is best way when trading with bitcoin or altcoin, some time many investor or trader worry have to cut lost or not when getting their coin assets down drastically, but is most effective way how to recovery their lost from one coin and get bigger chance with another coin to get much profit.

Rule #1 isn't a rule anymore, it's required for you to do so. Also, I guess calling it crypto trading is way too farfetched cause of rule #6. You could call it trading at this point in time since the other rules can strictly be applied to trading in general as well. You should probably add the mindset in trading as a rule. Don't cross out the possibility of losing money, in fact, expect it. There was never a trader who never lost any money after all. Even the best traders have, one way or another, lost a trade. Plus, fear is a factor that can be very hard to assume, so just do what you want tbh. Stop looking for guides on what to do, and trade when you want to, exit when you want to.

Rule 5 is more important for a trader to be honest because we can't make more profits if we fail to cut down the losses on this part most of the traders were lacking so even if they are doing profitable trades at the end of the day they are not in overall profits due to the trading fee and lost trades.

This topic is quite similar to the first topic I saw when I logged in. I do like what you said about studying and studying. It’s very important that anyone who wants to be a trader be studying.

There are people who don’t take their time to study about trading and they just get on it and at the end they are disappointed as they are unable to trade and profit from it. Some of them will even say that cryptocurrency is a scam, while the truth is that they never knew what they were doing. They expect from profit even though they don’t have much knowledge on it, they whine like they were not told that this carries risk.

This one is the most important rule so far. Most of the newbies make mistake by following various persons like OP who would suggest how to trade and this would usually make them face loss. You have to follow yourself in order to make profits from trading. You should never follow anyone else as they have their own strategy and also a backup plan if ever their strategy doesn't work but you might not be aware about their exit plan and hence you might even be trapped in the markets.

I didn't even bother to go through the 6 rules listed by OP as they are the common ones. Each and every one of us is aware about those rules but what we need is our own individual strategy which would derive the exact entry as well as exit points.

These have been stuff we have talked about previously before and many times as well, not like it is something rare. I mean each of this probably has a topic of its own with at least 10 pages that we have discussed. Do you know what the problem is?

Sometimes these are not enough and you still lose money, of course just following these wouldn't be that much of a help, if it was that easy we all would have been rich, so there are times when even these are not enough, which means these are the basic rules but not the guarantee that you will make money from this. On top of that even though this was talked about millions of times, there are also people who have failed to listen to it, they read it, they know it, they are aware of it, yet they still fail to follow it.

Can You Tell me about Trading.  How to identify that price will go up or Low.  I saw some traders.  They give correct signals About trafing.  How it is possible??

I should tell my friends to read this one coz they are pretty bad at crypto trading.

The rules in principle are simple, but in real time and situations they are rarely executed and this can be done either knowingly or unknowingly. Unknowingly, for example, when the market moves quicker than you expect and the delay in your move has cost you money!

Also the rule about cutting losses early is especially hard to implement given human greediness.

A lot of rules to be consider and yet many traders are failing on this one. Trading is not easy and for me its more on a mental battle because you should be more focus than to panic. We are experiencing a very volatile market right now, these rules can help us to stay focus and stay safe during this trends, its better to follow than to regrets on your trading.

totally agree
what to add for me risk management along with money management play a crucial role in trading
it's much easier to gain than to save or multiply
so I calculate all risks and also use special software to control risks (like Bitinsure.com)

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.