After 2021, 2022 will be a tumultuous year since there are far too many billionaires created from coins, while those who acquire coins benefit a few to a few dozen times.
Who will learn to prepare for the storm as a group?
Rule 1: Make use of unused investment funds.
- To avoid affecting human life, only idle capital should be utilised.
- Traders should first assess how much investment money they have, whether it is included in their free label capital or not. In other words, if the chance of losing this money has a minor influence on one’s life.
- Beginner traders should start with a minimal quantity of funds to minimise their risks.
Rule No. 2: Determine the Coin Market Segment
The Coin market is now separated into three segments:
• Top coin 1-4 is a low-risk bet.
• Top coin 5-11 has a medium risk.
• Coins with strong information but low capital pose a high danger.
Which section to invest in based on each Trader’s talent, expertise, and experience.
Rule 3: What should the objective be?
Traders should carefully consider what sort of investment they are making from the outset. Because traders utilize different tactics to prevent excessive losses based on their goals. Do your homework and figure out where you fit into these categories:
1. Trader (profitably purchase and sell surf)
2. The holder (hold long term)
3. The Trader and the Holder
The trader will adjust his approach and direction in accordance with each individual aim. It should also be highlighted that traders must stick to their aims and not alter them frequently, as this can confuse the trader’s spirit and lead to a lack of consistency.
Rule 4: Keep in mind when selecting a coin
Before discussing the notes that traders should consider while selecting Coin, consider the following scenario: What happens if coin A costs 0.1 BTC and coin B costs 0.000000050 (50 satoshi), and both decline by one satoshi? A drop of one Satoshi is the same as a decrease of two percent in your coin wallet B.
We may conclude from the above example that many newcomers believe that paying money to acquire little coins at a low price and anticipating that the value would climb 2, 3, or even tenfold is a good investment. However, this is not true; it has the potential to kill the trader.
Rule 5: Adhere to Technical Analysis Principles
Understand the basics of technical analysis.
a technical examination This is dependent on how each individual thinks; not everyone has the same analytical skill. Whatever the case may be, a trader must comprehend the following fundamental principles:
• Candlestick pattern from Japan.
• The MACD indicator.
• Zone of resistance
• Points of support
• Zone of support.
• Bollinger Bands are a type of financial instrument.
Rule 6: Extensive capital management experience
Please keep in mind that you should not make orders with all of your capital whether buying or selling. A trader must mix market news and technical analysis approaches before purchasing or selling something. According to some experienced traders’ accounts, they typically employ 80% market news and 20% technical analysis capabilities. However, traders should be aware that current market news is not always genuine, so they must check and verify on a regular basis.
Another thing to remember is to keep your greed under control. When you see others winning large, don’t be in a hurry to grow greedy. To help you comprehend the above concept, we’d like to provide you an example:
You purchased XRP at a price of 130, 150, or even 170 days ago, although the price was about 100 – 103 days ago. However, because XRP is among the top three, you may expect to see it in the next 100 days. Only the capital will be collected, with a profit of at least 50-100 percent depending on the purchase price.
Rule 7: Be cautious while splitting capital to avoid losing everything.
So that you don’t lose everything, divide your capital into little chunks.
Traders should be aware of this danger and avoid putting all of their money in one area. Determine the segments you want to split into first, and then subdivide.
For example, suppose you have a capital of 1000 USD (100%) that may be divided into three segments: long-term, medium-term, and surfing.
Turning the dilemma around, if you spend 100 percent of your cash in only one area, you will gain 2.3 times your initial investment if you are lucky. But what if it doesn’t work out? You appear to be losing all of your funds, research, and investing efforts at this point.
Rule 8: Take control of your own psyche, your entry and departure orders, and your time.
All three of them are crucial in coin dealing, and we’ll go through them one by one:
• Concerning self-psychological control
It is simple to fail as a trader if you do not understand how to regulate your own mindset. When the market varies dramatically, you must momentarily decide where the peak and bottom are, determine at what price to purchase and sell, and be determined whether to buy, sell, or hold for a long time. Once you’ve made your choice, you will not be sorry.
• Concerning the management of how to input and issue orders
You must first select how much money you will invest in the order. How much money will you get if you invest that much money, and how much money will you lose if you lose it?
• Time management in the workplace
You know how to distribute time effectively depending on whether you’re playing Trader, Holder, or Trader & Holder. I especially need to devote a significant amount of time to learning about the currency I own and am intending to purchase.
Rule 9: Recognize the difference between news and rumor.
Traders must be able to tell the difference between news and rumors. The ambiguity between the two might be fatal. Official, safe, and reliable news is what news entails. Rumors are untrustworthy information. But the tricky part is figuring out what is news and what isn’t. What is the source of the rumor?
When you receive information, you must examine and determine the source. Who is the bearer of the message? If many people believe the rumor, it can still be deemed excellent news, but it should be double-checked.
Individual or group instigations are rarely taken seriously in Trade Coin. For someone else, it may be profitable, but it is a loss for you.
Rule 10: Take Profit and Stop Loss
Notes on the notion of profit-taking and loss-stopping
When initiating a possible transaction, it is vital to assess how much of a percentage increase will win and how much of a percentage decline would halt the loss. When you’re certain it’ll continue to decline, sell your stop loss and purchase it back at a cheaper price. If you have capital constraints, the DCA (average price) approach should be used.
Rule 11: Educate yourself on the procedure of trading coins.
Don’t allow a lack of information get the best of you.
Whatever you do, you will feel confident, comfortable, and sure of yourself after you have properly prepared your information. And it’s not only Trade Coin that wants to be successful; others do as well. There is no other option except for each individual to arm themselves with information; do not perish due to a lack of understanding.
As a result, you’ve learned 16 key concepts for trading coins that will help you avoid making costly mistakes. As a trader, whether new or seasoned, you must learn the 16 principles listed above as a bloody lesson.
Rule 12: Keep an eye on the price of Bitcoin (BTC).
When trading cryptocurrencies, you should keep an eye on BTC since the price of BTC has an impact on the price of other coins. It’s still unclear if a coin’s price and that of other coins are proportionate or inversely related. However, while exchanging currencies, please pay close attention to BTC!
Rule 13: Don’t let your account go out of business.
On occasion, the market will witness the occurrence of a coin’s price rising, then plummeting without pausing. It’s also unusual when the price is low when you’re selling, but then it goes up soon after you’ve sold. These games are typically created by sharks, and the mentally challenged player will become despondent. Margin is a double-edged sword, since it is quite easy to burn an account, as the price drops dramatically and then increases again. As a result, many accounts will be burnt when the market swings and anticipates.
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