Pro Tip For New Traders

Pro Tip For New Traders ^

1. Stop looking at price per coin.
2. Price per coin does not matter.
3. Start looking at market capitalization (price per coin x max supply).
4. Just because a coin is under 30 cents, doesn’t mean it has large upside. Supply limits it’s growth.

New Traders, don’t fall into the Monte Carlo Theory:

You are so keen into believing that a certain outcome will occur that you establish a bias towards the pattern.

“If you lie to yourself enough times, you start to believe it”

Rules I follow:

1. Trading isn’t a hobby. Learn everything
2. You need good computing power
3. Your initial capital is everything
4. You’re not on Wall Street. Sit down
5. $5K or less isn’t worth day trading
6. Take profits you idiot
7. At times, it’s okay to bet big (and lose)

Two Pools Theory:

1. Best traders use the "Two Pools Theory"
2. Or... short-term trades vs. long-term trades
3. Short-term are your quick hits. Get in, get out. Daily or weekly.
4. Long-term are years long.
5. You make profit in short-term to fund your long-term.

News Trade Theory:

1. If there are RUMORS of an announcement, the pump occurs DURING this phase. Mass sell-offs occur AFTER the LIVE announcement day.

2. ONLY when an announcement is OUT OF NOWHERE, is when news DRIVES price.

When to sell:

1. Coin pumps & gets stagnant. Sell.
2. Once a major announcement occurs. Sell.
3. Notice more sell volume. Sell.
4. Bearish chart patterns. Sell.
5. FOMO. Sell.
6. Doesn't pass sniff test. Sell.
7. Consolidation; money to be made elsewhere. Sell.
8. McAfee. Sell.

Valuable lesson on major announcements.

“Buy the rumors, sell the news.” This is a short term strategy. Buy back in once the dust settles.

^ Hive account@cryptochoe
Blogs for my own knowledgebase and educational purposes only