So this is my 2 cents.
Now mind you... I'm not one of those fancy Wall street boys, nor am I an oracle or guru. But I love what I do and I make modest profits. I choose to trade with money that I don't really need at the moment and so this gives me the luxury to be able to compound my profits. In time it will add up. I hope.
When I first started, after reading all kinds of books, I had it down. And guess what? Everything the books told me not to do, I was doing it. It went so far that I had to write my rules on post-it notes and stick them on my screen. Buying into the hype? Done that.. all the time... Selling when the market panics? Yup, that too. Hoping and praying that it will go back up when it turns negative? Yup!
So what did I put on my post it notes? Here it is, and it's working for me. As long as I stick to them. ;)
- Set your goal before you buy and check it against feasibility.
- Enter your sell order right after you buy.
- Don't change it. Not even for more profit.
- Set your daily goal and stick to it. Even it that means putting in some overtime.
- Buy low. Sell high.
- Do not buy into hype.
- Something went wrong? Analyse it. Ask others about it. Write those experiences down. Learn from it. Try not to do it again. ;)
- At least once a week, read those notes again. And again. and yes... AGAIN!
Another thing I've learned is the following.
I trade on technicals first and fundamentals come in second.
Technicals tell you that the past will tell you something about the future. NOT ALWAYS TRUE in the Crypto Universe!
You see how high it went last month! I MUST go there again. Not always true. There is a lot of pump and dumps among the smaller coins.
Watch out for bot activity. You know... Suddenly a big SELL wall, with a lot of mini sales under the price of that wall and small buys? Or the other way around with a BUY wall? Remember those? You see those. Stick to your guns. A bot can only influence the market so much. I do mainly trade high volume currencies though. The small volume currencies can be influenced a lot easier. Look at it like this. If the total volume in a day is 5BTC... and someone comes in with 25BTC... Don't you think he can move the market to where he wants it to be? That's a lot harder to do in markets where trading volumes are 2000BTC and up.
Oooh! Important one: Don't change your mind in the middle of a trade.
Now there is exceptions to this rule. You CAN make a mistake. You can have overlooked something.
But if you haven't: stick to your guns. If there is a sudden pull back, it will come back up. Unless something fundamental has changed. But usually that doesn't happen. Usually I just change my mind because something unexpected happens and I lose my confidence. So don't !
Be happy with 5 times 2% profit rather than chasing this one 10%. This is day trade. My longer term trades, I let them run their course. But in day trading. Again: be happy with small (and fast) profits, rather than chasing that "ten percenter". And again: set your goal in advance, put in the sell order right after you bought and don't touch it. DO NOT TOUCH IT. Walk away if you have to.
There you have it. That's my 2 cents. Nothing new. Nothing spectacular but I thought I'd share it anyway. And if anything, I can read it at the beginning of each trading day. I need it more than I care to admit.
Good luck and keep Steeming!