Rules and tools of a cryptocurrency trader

“There aren’t many things in life that excite me enough to make me lose sleep, but when I think about it… Crypto … The cryptocurrency market is what really prevents me from living a normal life: I don’t sleep well, I don’t eat much, my productivity is at zero… I’m constantly at a loss… to sell or hold?”

Recognize yourself? 

And every 15 minutes you hear the voice “check the charts”in your head? And obviously, hardly anything has changed since the last check, and that you will not feel better when you see the same numbers. But you check them anyway. Because there’s money at stake.  Lots of money.

What we will tell you today in this article can radically change your trading. And you can apply these recommendations in any market, but in a bear market, you just can’t do without them. Get out your notebooks and pens, because we’ve gathered the experience of the coolest crypto trading professionalsto tell you how to stay calm when everything is on fire and take out your profits best application forex.

The first rule of the Crypto Traders Club: You Should Always Have a Plan

It seems so simple and obvious. But at this point, the majority “falls”. Because it is not enough to imagine the general motion vector in your head. This is not a plan. A plan is a clear, step-by-step guide to action (ideally written down), along which (even with a headache, even half-asleep) you can move regardless of emotions and circumstances.

And there’s a huge difference between “having a plan” and” sticking to it.” I bet most of you have a rough idea of what you want and how to get there, but one minute (for example, after reading some “super strong news”) you decide to change the plan, and as a result, you sell too early or too late.

You need to set the criteria. There are clearly defined rules that you will follow when the market goes in one direction or another. Every professional has a trading plan, and they strictly follow it.

It’s time to think like a pro. Write your trading plan and place it in a prominent place, where you are trading. And when the market reaches any of the thresholds, all you have to do is look at your plan and perform the action indicated there. If the strategy is written down and is constantly in front of your eyes, it is much more difficult to ignore it.

What should I do? Ask yourself sometimes, “If the market crashes right now and I lose everything, will I be okay? “— if the answer is” Yes”, keep going. However, if the answer is no, consider rethinking your approach.

Second rule: strengthen your portfolio

Check your portfolio and filter out coins with long-term potential from coins that don’t have any. This will help you in the event of a major market downturn.

In a bull market, it doesn’t matter what you choose to invest in — the market grows and everyone wins, some more, some less.

A bear market is another matter. The ship may not go down yet, but it’s definitely going through a rough patch. And any ballast will drag you down. So help yourself-reduce the dead weight. Analyze your investments, think about shitcoins — and be frugal.

At the same time, it is important to act quickly and decisively. Remember that real money is at stake.

Carefully evaluate even coins that you think have long-term potential. And ask yourself: is it worth the risk? And in case of doubt, it is better to invest your money in a more stable coin, which in your opinion will definitely be able to survive the fall.

What should I do? Add this item to your plan: list all your coins in order of importance, thereby determining in what order you should get rid of them in the event of a market crash.

Reduce noise

You probably have already heard this advice more than once, but nevertheless subscribe to the next (37th) Telegramchannel of the next “most experienced” trader, check Twitter for the 7th time in a day… And you can’t resist the temptation to discuss the next hot news in the comments or give advice to that simpleton.

BUT Long-term profitability is always about positioning yourself ahead or behind the crowd, and never in the crowd. Stay away from discussions. Everyone in these chats has ulterior motives.

Too many people spend too much time in endless discussions on Telegram/Slack/Twitter/Reddit/Facebook/Discord…(this list can go on for a very long time). And the best thing you can do is not visit all these social networks, because there is too much misinformation spreading there, and this will force you to make rash decisions and sell too early.

Your main (and only) task as a trader is to watch charts and make forecasts. And to make accurate predictions, you don’t need to collect as much data as you can fit in your head. We are talking only about high-quality information, it should not be too much — it just needs to be correct.

For those of you who want to get useful information without having to spend a lot of time reading it, discussing it, and most importantly filtering it, there is a cool opportunity to join closed (most often paid) chats.

What should I do? Conduct an audit of all the sources that you subscribe to, “clean ” them, and be critical! Ask yourself — is there really any useful information here and does it help me in my trading? If not, please unsubscribe.