Honestly, Trading is addictive. Once you get used to it there is no back. Some people have made their fortunes while some have been unsuccessful. Here are a few important things that you should be keeping in your mind and these will help you a lot in crypto trading.
Keep your Sentiments in Check
First thing to keep in mind is to have a clear direction in your mind where the market is going to go. Don’t act on emotions and without any reason. Don’t develop a bias. Trade, don’t gamble.
Try to look at the news with respect to the coin that you’re going to trade on. Is there positive news? Is there bad news? Is there any FUD being spread? How are these going to affect the price movement?
Avoid entering into manipulative coins. These coins are difficult to trade and are very volatile and can show sudden changes. Rug Pulls can also happen in these coins. Beware.
Don’t be greedy and don’t overtrade. Try to stick with minimum open trades at one time. Don’t sleep on one and use caution with newly launched coins.
Technicals to Keep in Mind
Have a good sense of risk and try to use minimum leverage on trades if you are new. It is recommended to stay in the spot if you are just starting from scratch.
Before opening a trade, have a look at BTC and how it is performing. Is BTC stable or in the right direction? Go for it, otherwise, it is recommended to avoid uncertain scenarios.
Don’t long the Top and don’t short the Bottom. Try to understand support and resistances and how the market respects these levels.
Track OHLC (open, high, low, close) levels. It is important to know where the candle opens and closes.
It is recommended to trade with at least 3 confirmations. Important confluences can be taken by:
- Trend Line
- S and R
- MACD
- RSI
Use stop losses, a lot of people don’t use them because they think that the price is eventually going to come up. But use them and use them wisely. Typically 5% to 10% is used or the point below the nearest support.
Always define your take profits (TP). When the trade is going good, don’t be greedy and take profits along the way. Decide TP levels before you start the trade.
Buy the dips in a good moving market. But try to average your way in the market. If the price dumps to a certain level don’t enter all at once. Instead, invest some portion, and if the market dips further invest more.
Lastly, making profits in the market is easier as compared to preserving your capital. Try to take minimum risk. Don’t invest something you can’t afford to lose.
