Hey all
I had a few requests to do a beginners' guide for crypto currency trading. So I've put together this series.
The topics will be general to begin with, as it's a beginners' series.
I'm happy to cover any topic in more depth, if there's enough interest around a certain area. (just make your requests in the comments section) - I can do a more advanced series after this one.
I'll cover ...
- Simple Trading Rules (today)
- Trading Plans
- Exchanges
- Learning Resources
- Charting
- Execution
- Trade Analysis
10 Simple Trading Rules to follow
Have a trading plan (write it down ) - Don't complicate it. Simple plans execute better.
Don't set price goals - your plan should consist of entry and exit conditions - that's it.
Weight your plan towards cutting losses quickly and letting profits run.
Have a holistic view - see the entire market, not just the coin you're going to trade and make your decisions based on the market conditions ''not your gut feeling''. Stick to the plan.
Don't get shaken out by noise - never exit your position just because the price suddenly moves against you - only exit when the reasons you made the market entry no longer exist within the market, or a better opportunity has come to light.
Understand how the total Marketcap relates to the Marketcap of each coin.
Understand the importance of a ''Market Dominator'' such as Bitcoin with 40% of the entire Marketcap. What happens the rest of the Market when that PERCENTAGE (not the price) moves up and down?
Avoid using a stop loss where possible (see point 5 ) - sometimes you might need to - but never as a rule.
Try to plan 2/3 trades ahead if possible - this will give you a chance to take advantage of coins (on your radar) that suddenly spike to outpace the coin you're trading.
Educate yourself. Knowledge dispels fear and greed which are the main reasons for costly mistakes while trading.
Stay tuned for part 2. Trading Plans
Follow to ensure you catch the entire series.
This series will require a ton of effort so I'd much appreciate Upvotes and Resteems so we can get this content out there for all Steemians to enjoy.
Also please let me know in the comments if there's another topic you'd like me to address in the series.
Also this week I'll be starting the 100K Challenge. Very excited to be getting started.
You can check it out here : https://steemit.com/introduceyourself/@wannerbet/hello-eur100-000-steem-powered-trading-challenge
Peace,
Wannerbet