On October 22, 2017, I quit my full-time job in finance to trade crypto. Here are some of the major lessons I’ve learned:
- For most traders, the biggest challenge is their pride, or the need to appear correct.
- When you manage risk correctly, you could lose 50 percent of your trades and still be profitable
- Price action and volume are the best indicators for charting. You can use others but it probably won’t make you a better trader.
- Trends can go far beyond what seems to be logical.
- Avoid pump and dump groups.
- You’re going to make every error while trading. When you make mistakes, don’t punish yourself, just improve and strive to not repeat those mistakes.
- Do not treat crypto exchanges the same way as cash in bank accounts. Unless you control the private keys, you don’t own the coins.
- In the 24/7 crypto market, you won’t be around to catch every trade. Don’t worry, there will always be another trade.
- Don’t try to find tops in a market. Wait for the trend to tell you when it is changing.
- You can make money in altcoins selling hype and speculation, just don’t make them long-term investments.
- Stay away from low-volume coins. They’re easy to manipulate and you can get trapped in a position — unless you are familiar with the market.
- Only trade money you can afford to lose. An unfortunate reality if you don’t manage your risk properly.
- As a trading sniper, know when to strike and when to wait for the target to get into position.
- Crypto exchange order matching systems go down when there are major price movements. If the price is moving into a target Sell or Buy zone, place orders before the move via limit orders.
- Manage your risk profile per trade in a way that presents you with no remorse regardless of what the market does.
- Learn how to think the opposite way of the crowd. If you’re someone who wants others around you to affirm your view, then trading is not for you.
- Trading is not about choosing precise tops and bottoms in a market — it’s about catching a market trend.
- Don’t turn a small short-term losing trade into a long-term large-scale losing investment.
- Don’t set goals for everyday gain — set long-term goals for success.
- Learn to survive in trading, then excel.
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