Your crypto trading rules are your bread. When you strictly stick to follow your own rules you make decent returns. On the other hand if you break your own crypto trading rules the most likely result is that you will lose money.
Once you have a consistent set of crypto trading rules it is significant to keep them in mind.
Carefully read and understand these rules before your day starts and also read them when your day ends.
Trading Rule 1: I must stick to my own rules
As you would expect if you develop a set of rules they are to be followed. It is human nature to want to differ or break rules and it takes self-control to continue to act in accordance with the established rules.
Trading Rule 2: I will never risk more than 3% of my total portfolio on any one coin trade.
There are many old traders. There are many bold traders. But there are under no circumstances any old-bold traders. Guarding your investment base is central to successful crypto market trading over time.
Trading Rule 3: I will cut my losses at 5% to 10% when I am incorrect without question
Some traders have an even lower tolerance for loss. The basic point here is to have stop-loss set points. Stay knowledgeable about the performance of your crypto and strictly stick to your stop loss point.
Trading Rule 4: Avoid setting price targets
This is an approach that allows many traders to get the most out of rising coins. Learn to let the profits ride. You should be prepared to give back a decent percentage of profits in the hope of much higher returns.
The great amount of money is made from trading the truly GIANT moves that you can sporadically catch.
Trading Rule 5: Master one particular style
Learn to learn continuously to become better at this one method of trading. Strictly avoid jumping from one trading style to another. Master one style rather than become average at implementing several styles.
Trading Rule 6: Let price and volume be my controllers
Don’t give any attention to any opinion about the crypto market or particular coin you are considering trading or are already trading. The whole thing is reflected in the price and volume of a coin.
Trading Rule 7: Consider taking all effective signals that show up
Learn to avoid making excuses. If an entry signal shows up you have no excuse not to take it.
Trading Rule 8: Don’t trade from intra-day data
There is constantly cryptocurrency price variation within the course of any trading day. Trusting on this data for momentum trading can lead to some incorrect judgments.
Trading Rule 9: Take time out
Effective trading isn’t exclusively about trading. It’s also about emotional strength and physical fitness. Ease the stress every day by taking time off the computer and working on other areas. A stressful trader will not make it in the long term.
Trading Rule 10: Be an above average trader
In order to succeed in the crypto market you are not required to do anything outstanding. You basically need to not do what the average trader does. The average trader is inconsistent and undisciplined.
Question yourself every day, “Did I actually keep an eye on my approach today?” If your answer is no then you are not in a good position and it’s time to recommit yourself to your stock trading methods.
This information is for Learning purposes only. We are indeed not financial mentors. It should not be considered legal or financial advice. You should consult with a financial advisor or other professional to find out what may be the finest for your individual needs and risk tolerance.
Please do your own research.