To take trading as a business, you have to get an risk-reward management system, an in-and-out strategy, and an strict executable procedure.
In order to avoid overtrading and getting lost, I am listing 10 rules for Bitcoin and altcoin trading here.
#1 Limit the trading coins
Focus on BTC, DOGE, ETH and MAID right now, limit the trading coins to 5 any time.
Focus on what you have, what you like and what you are good at.
Only one margin trading position any time.
#2 Never chase the bull
Especially when the price is going up higher and higher every minute, you know that it is going to fall soon, very soon. So that you can try to short at the top. For this situation, don’t leave the chart until you close the long or open the short.
And also never chase the bear, don’t short when the price is falling lower and lower every minute, you know that if it is going to rise soon, very soon. So that you can long at the dip. For this situation, don’t leave the chart until you close the short or open the long.
#3 Don’t trade against your TA
Whether you are going to buy some cheaper coins for long-term investment, or to enter an uptrend trading, don’t buy or sell against the TA results.
When the trend is unclear and you are in a profit zone, take the profit and get out, waiting for the next entering time.
#4 Set a stop-loss
Without risk management (Stop-loss), all your profits are just because of luck.
Although a 1% to 100% loss is common on the crypto currency market (especially Margin Trading), losing 1% is much more comfortable than 100%. And what is more, the TA is not 100% right. So setting a stop-loss after a limit buy or sell is very important. And the stop-loss will be just 2.36%.
When you are leaving the chart, make sure that you have planned well and won’t lose too much whether the price is going to rise or fall.
#5 Be Patient
Whether to buy or to sell, you need to be patient, and remember, the bigger fish is on the bigger frame.
When the price is far away from ATL, don’t buy unless the trend is up;
When the price is NOT far away (at least 23.6%) from ATL, don’t sell unless the trend is down.
#6 Buy or sell partly
Instead to buy/sell them all at a time, it is better to buy/sell a part every time, which will be more comfortable.
The order price will be placed according to the Fibonacci extension.
When the Fib is not met, start to buy or to sell according to the 1 min chart.
#7 Buy the rumors, sell the news
Before the news, rumors come first, this is the best time to buy in, when the news coming, others are greedy, time to sell out. That’s why always dump on news.
#8 Be greedy and fearful
… be greedy when others are fearful. … be fearful when others are greedy.
When the volume is higher and the price is higher, you know that others are greedy; when the volume is lower and the price is lower, you know that others are fearful; and when the volume is higher but the price is lower, you know that others are dumping.
#9 Be Peaceful
When you are having a mood, whether up like excited, or down like angry, don’t trade. And only trade when you’re peaceful, 100% peaceful without any emotions.
Don’t check out Twitter, Trollbox, Telegram or any other news, turn phone to airplane model, and focus on the TA, which will be helpful.
#10 Keep learning
The market is always right, whether the price is up or down, you are only right when making profit. Keep learning and never hostile to change your mind.
After all, take trading as a business, take it seriously, or you will just work hard to lose your money.