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Below are 5 Rules, I try to follow when trading in the Cryptospace. These rules are for trading only, I also have bags of assets, like Cardano ADA, VET, & BTC, that I dont trade and am HODLing.
1. GAINS are GAINS - If there is a shitcoin that I can make gains on, with a quick in and out swing trade, Im in. I dont have to believe in a project to grab some profit from it. Ill then put a percentage of the profit into projects I do believe in long term. the remaining profit I put "on the bench" in my trading account, ready to come into play during the next BIG dip.
2. PERCENTAGE, PERCENTAGE, PERCENTAGE - I have to remind myself that Im dealin with percentages. In my mind there is something that finds owning 1 whole token instead of .0001 of a token more appealing. In fact this doesnt matter, my profit is based on the percentage the token goes up no matter what decimal point my ownership represents.
3. TRADE THE MARKET EMOTION, NOT MY EMOTIONS - I take my knee jerk responses, that are based on my emotions out of the equation when trading. This helps keep me from making irrational decisions that I have not put enough thought into.
4. HODL or not to HODL - There are a few projects that I have emotional attachment to, that I believe in, and feel like I know they are the future of finance. Its hard to sell even 1 of these tokens to take profits, but i remind myself that at some point, unless we're in a super cycle, there will be a crypto winter and the large profits Ive got now will be gone. If the winter comes everything will be on sale and I can use the profits Ive taken to get a much bigger bag.
5. Follow the Trend - When we are in a bearish trend tokens tend to break down when setups are broken. In a bulllish trend we tend to go up, when these setups break. "The Trend is Your Friend" is a common phrase we hear, and it tends to hold true. Also, altcoins usually follow the trend of bitcoin, that s why right now in this bear trend, you see crypto you tubers focusing on the BTC chart.
I hope my 5 rules will help you make bigger gains in your portfolio and inspire you to set your own rules to follow, so when big moves happen you are not allowing your emotions to affect your trades. Feel free to add your rules in the comments, would love to see them.
