After all these years, I’ve found that people who make money have a few things in common.
A lot of losses could have been avoided. Everyone knows the rules, but when the market moves, they still chase highs, hold on stubbornly, or keep adding to losing positions recklessly.
If you’re trading with a small account, pay close attention to these ten tips.
1. If a strong coin has fallen for nine straight days, don’t rush to buy the dip. First, look for signs that the decline has stopped. A deep drop doesn’t mean a rebound is inevitable.
2. If it’s surged for two days in a row, don’t chase it. Lock in some profits if you’re up—don’t give them all back.
3. If it jumps more than 7% in a single day, be extra cautious the next day. If it runs out of steam after spiking, watch for a pullback.
4. Don’t try to pick the top on a strong coin. Wait for it to pull back to support and hold before entering; it’s easier to manage the risk.
5. If it’s been moving sideways for three days, watch and wait. If there’s no volume or clear direction after six days, put your money elsewhere.
6. If the price action turns against you after you enter, don’t stubbornly hang on. If it can’t reclaim a key level the next day, get out.
7. For coins that have been rising steadily, keep a closer eye on volume on the third and fifth days. Don’t just fantasize that they’ll keep going up.
8. The volume ratio is a useful indicator. Watch for a breakout on rising volume near the lows; be cautious if volume surges near the highs but the price goes nowhere.
9. Trade with the trend instead of trying to guess tops and bottoms. For short-term trades, watch the 3-day moving average; for medium-term trades, the 30-day; and for swings, the 80- and 120-day.
10. The biggest pitfall for small accounts is impatience. Wait when there’s no opportunity, protect your profits when you have them, and cut losses quickly when you’re wrong.
Put simply, the hardest part of trading isn’t learning technical analysis.
People know not to chase, but chase anyway. They know when to cut losses, but keep holding on. That’s where so many people get burned.
It takes time to realize that what really sets people apart are these seemingly insignificant habits.
Keep your hands in check, protect your profits, and avoid major mistakes. That’s how an account can grow, little by little.
A lot of losses could have been avoided. Everyone knows the rules, but when the market moves, they still chase highs, hold on stubbornly, or keep adding to losing positions recklessly.
If you’re trading with a small account, pay close attention to these ten tips.
1. If a strong coin has fallen for nine straight days, don’t rush to buy the dip. First, look for signs that the decline has stopped. A deep drop doesn’t mean a rebound is inevitable.
2. If it’s surged for two days in a row, don’t chase it. Lock in some profits if you’re up—don’t give them all back.
3. If it jumps more than 7% in a single day, be extra cautious the next day. If it runs out of steam after spiking, watch for a pullback.
4. Don’t try to pick the top on a strong coin. Wait for it to pull back to support and hold before entering; it’s easier to manage the risk.
5. If it’s been moving sideways for three days, watch and wait. If there’s no volume or clear direction after six days, put your money elsewhere.
6. If the price action turns against you after you enter, don’t stubbornly hang on. If it can’t reclaim a key level the next day, get out.
7. For coins that have been rising steadily, keep a closer eye on volume on the third and fifth days. Don’t just fantasize that they’ll keep going up.
8. The volume ratio is a useful indicator. Watch for a breakout on rising volume near the lows; be cautious if volume surges near the highs but the price goes nowhere.
9. Trade with the trend instead of trying to guess tops and bottoms. For short-term trades, watch the 3-day moving average; for medium-term trades, the 30-day; and for swings, the 80- and 120-day.
10. The biggest pitfall for small accounts is impatience. Wait when there’s no opportunity, protect your profits when you have them, and cut losses quickly when you’re wrong.
Put simply, the hardest part of trading isn’t learning technical analysis.
People know not to chase, but chase anyway. They know when to cut losses, but keep holding on. That’s where so many people get burned.
It takes time to realize that what really sets people apart are these seemingly insignificant habits.
Keep your hands in check, protect your profits, and avoid major mistakes. That’s how an account can grow, little by little.
