GENERAL CRYPTO RULES
- Do your own research on the coins you are interested in
- Only put in what you can afford to lose
- Keep a regular check on the price charts for your coins
- Treat youtube influencers opinions as opinions, and not fact
- Make use of staking if you plan to hold the coin for long periods of time
- Avoid pump and dump schemes
- Never send any coins to anyone
- Never send your seed phrase to anyone
SOME TRADING RULES
- Learn to control your emotions, specifically fear, greed and uncertainty
- Trust your charts. Be patient. If you expect to go on a level or a target and we bounce a bit before, wait for it to be reached. Stay focus on your plan.
- Learn basic patterns
- Learn an advanced strategy such as Elliott Waves
- Know that you will most of the time not buy the very bottom, or sell the very top
- Know your target entry, profit levels, exit and stop loss BEFORE you enter a trade
- Always set a stop loss
- Be careful shorting in a bull market, it requires a lot of knowledge and experience
- Never chase the trade/FOMO
- Know that you will never win 100% of your trades
- Only trade when you are sober and not tired – mistakes can happen!
- Do not use too much leverage
- Don’t use your entire portfolio to trade
- Do not revenge trade
- Weekends are most of the time extra volatile
- Never lower your sl. If you have calculated it correctly, then you don’t need to be scared to be stopped out. You calculated it, and you know the loss you will possibly get. It’s better to get a small loss than a liquidation or a big loss because you did not wanted to be stopped out by the dip.
- Trade what the market give you, do not try to be against the market.
The stop loss (or protective stop) is the price level at which the investor will prefer to close out his position, in case of a loss. … It defines the maximum acceptable loss for the investor. The SL can be turned into SP (stop profit) if you move it upwards than your entry
Take profit is the price level at which the investor will prefer to close out his position (in profit)
“Hold On for Dear Life” Holding a coin for a long period of time. Pay attention, holding can be dangerous. If you bought a top, holding is not a good idea, it is better to wait for lower prices to buy.
A pump is when the market move to the upside really fast.
A dump is when the market move to the downside really fast.
Point of control. The price level for the period with the highest traded volume. High volume on this level. It can be a support or resistance.
In a long trade, you purchase an asset and wait to sell when the price goes up.
In a short trade, you borrow an asset, sell it, and hope to buy it back when the price goes down.
Naked Point Of Control. It is a POC that has not been tapped yet. You can expect to get some reaction on it.
A market order is immediate: it is simply an order placed by a trader to immediately buy or sell an asset like bitcoin regardless of its current price.
A limit order sets the maximum or minimum price at which you are willing to buy or sell. It is a type of order to purchase or sell a security at a specified price or better. For buy limit orders, the order will be executed only at the limit price or a lower one, while for sell limit orders, the order will be executed only at the limit price or a higher one. This stipulation allows traders to better control the prices they trade.