The 8 Golden Rules Of Crypto Trading
How do I make money with bitcoin? Where is the money in the crypto world? The answer: you need rules. We have collected the fattest wisdom from endless trading literature, filtered it, and created the 8 golden rules of Crypto Trading!
The 8 Golden Rules Of Crypto Trading
1. Beginners lose in crypto trading because they:
- Bet too much money
- Trade without knowledge, that is, play the lottery
- Hold positions too long
- Trade with cheap shitcoins
- Play with other people's money
- Never take out their profits
- Trade too often, so also try mediocre trades
That is why you have to know everything about The 8 Golden Rules Of Crypto Trading.
2. 50 Plus 1
Again the seesaw. A price can take only two relevant states: rise or fall. It's a 50/50 thing. If we let a pig trade, his probability of being right is precisely 50 percent. Nobody is right 100 percent of the time. No system can correctly predict an irrational market that has been manipulated over and over again. The goal of every trader is to be at least 51 percent right. Every trader needs frustration tolerance to lose in 49 out of 100 trades.
3. Crypto Trading is War
In state-organized battles, there is a term "fog of war." This led to one from the 8 Golden Rules Of Crypto Trading. The commander does not see the whole map but only what is in front of his eyes. He must make decisions with incomplete information. It is the same in trading, in particular crypto trading. Individual traders are always on the wrong side of the asymmetry. There are so-called whales - they own so much crypto that they can change the price a lot with one trade. However, only the whale knows when it does so. When news (real or fake) drives the price, we usually find out too late. In trading, those who have essential information beforehand win.
4. The Mistake is You!
Another of The 8 Golden Rules Of Crypto Trading is this: The market is always right. If the market does not behave as you calculated, you are wrong. Always and forever. Amen.
5. Faith is (unfortunately) Everything
No matter how mathematical the system, our belief in magic and fate always gets in the way. Example: A coin is being pumped and reaches incredible peaks. We know it's already too late to jump in but do so anyway for fear of missing out (FOMO). Or we see patterns where there are none. There is a separate field of research in psychology for this: bias. Result: Nobody is rational. To believe that we act rationally in the market is a mistake.
6. There is No Win-Win Situation in Crypto Trading
Remember the seesaw at the schoolyard. Two children are swinging up and down. There are two states: either one child is down, and the other is up. Or they are balancing quite strenuously in the middle. That's how trading works. Sometimes nothing happens, and the price balance is strained in the middle. But every time one trader makes a profit, another suffers a loss. The seesaw can't be up on both sides. Simple physics. The question is: why do you think you are better than your opponent?
7. Less Technical Analysis (TA) is More
Learn moving averages, stochastic RSI, MACD's, trend lines, the basics of candlesticks, upwards & downwards channels, bull flags, breakouts, and wedges. TA can be "zoomed." They can be formed from daily, hourly, or minutely values: the shorter the time period, the more error-prone the pattern. Don't look for in minutes what you can't discover in hours. And this is one of the 8 Golden Rules Of Crypto Trading
8. Make 100 Bad Trades Quickly
The only way to increase the chances of winning is to experience trading. Reading books doesn't help. Neither does trading with play money. Only actual trading with real money brings experience, insight, and success (if any). Start small. Start with 100 Dolar. When you have doubled this, you can add another 200 euros. When the 400 have folded, then you repeat the game. And always trade only with so much money that it does not increase the pulse.
Do you want to share your experience in crypto trading? So, leave your comment on The 8 Golden Rules Of Crypto Trading.