Today, we’re discussing the Top 10 Ultimate rules for Beginners in Crypto Trading. I had already discussed the points in deep hope everyone will get benefits of that.
1. Fear Of Missing Out
Get FOMO out of your head, there will always be other plays for you to enter with a safe entry and a better risk-reward ratio. When I have FOMO with a ticker I usually enter with a very small position so it doesn’t distract me from other trades.
2. Do Your Charting and Stick by It
When novice traders do their charting, they keep changing their lines based on the move (actually they are trying to see what they want to see instead of getting the right information from the market). Stick to it.
3. Candlesticks are your Dictionary
Make sure you are familiar with important candlesticks, patterns, and key reversal signals. If possible, print out the candlestick cheat sheet and pin it to your workspace. Important candles/patterns always occur during intraday trades.
4. Compound Gains
If you think trading is the way to become an overnight millionaire, trust me when I say this, you shouldn’t be here. It’s all about compounding and small wins, if you take them trust me, you’ll be better than 99% of traders out there.
5. Never Stop Learning
Always make sure to invest in useful books and courses on candlesticks/patterns. This can save you hours of research and you can use that time to practice on a paper trade account. Social media can help a lot, learn from the best and learn from their experiences.
6. Risk Reward Ratio
Never enter a trade with a risk-reward ratio of 1:1 or less. You should always have a risk-reward ratio of 1:2 or higher. That way you’re not risking what you’ll potentially gain. This helps to make the compounding of small accounts easier and faster.
6. Stop Losses are your Friend
If you are a new trader, don’t even consider a mental stop loss, you should always keep a hard stop loss in place, whether it is a day or swing trade to reduce risk and reduce the chances of bag holding. Keep “this will go back” out of your head.
7. Go In With a Plan
Before entering a trade you should have complete knowledge of where your SL should be, where to accumulate more, and where to exit the trade completely. You should also know your risk: reward ratio and how you plan to exit the trade.
8. Don’t chase, buy the pullback
There will be times when you see huge 100%+ moves, don’t chase these plays, you can easily burn your port. Either wait for a pullback to the previous support area or wait for the next couple of days to come back to the Fibonacci levels.
9. Revenge Trade is your Enemy
There will be days when you face a loss and want to get that money back immediately. This will break your mentality and cause more damage. When you’re having a bad day, walk away and return to the trading zone.
10. Never Stop Learning
Always make sure to invest in useful books and courses on candlesticks/patterns. This can save you hours of research and you can use that time to practice on a paper trade account. Social media can help a lot, learn from the best and learn from their experiences
