Simple lessons (tips) of trading

At the present time cryptocurrency is a very popular thing, and most of the users on the Hive platform know about cryptocurrency as well as cryptocurrency trading. It's true that cryptocurrency trading involves risk, and in life we need to take risks if we want to achieve something big. Everybody wants to make profit from trading, but at that very few people are capable enough to make profit while others suffer loss at the end. I came to the trading world approximately 4 years ago, and I think my knowledge about cryptocurrency trading is very little, and I have many things to learn about it, and I am trying to learn as much as I can. Based on my observation, most of the people don't know about technical analysis. They just keep trading based on news and their thoughts. I think in my 4 years of experience I learned a few things that can be helpful to do better in trading and make profit.

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I am going to talk about future trading, which is also known as leverage trading. I know many of you don't like this, but I am still going to say it. I believe that future trading is not for those people who don't have proper understanding about trading and the market. Leverage trading can maximize the profit, but at the same time it can maximize the loss also and the maximized losses liquidation. One may lose all the funds that were earned for several months. I know that there is a stop-loss option, which can eliminate the risk of liquidation, and it should be used in my opinion also, but most of the normal traders (as far as I have seen) don't use stop-loss. Some traders don't know the importance, and some don't use it even if they know why it is important. So I strongly recommend avoiding future trading if anyone is not an expert. I don't consider myself an expert, and that's why I always try to avoid it. If you are an expert, then you can go for it. And you know better if you are an expert or not. For me, spot trading is best.

Traders do trading, and it's a very normal thing, but every time the market goes against our favor. Many of us don't keep any spare funds to reinvest. I don't know about others, but in my eyes it's a terrible mistake. It doesn't matter if the market is bullish or bearish; it's necessary to keep spare funds. If a market crash occurs, it can give us the opportunity to rebuy crypto at a cheap price. Most of the things that it would be better if they were sold earlier and rebought again in the time of the market crash. They wish they had had some funds to invest at that time. Market crashes come from time to time, and so it's wise to keep spare funds if one doesn't want to regret it. Even after isolating spare funds, I keep an emergency fund also, which I use in rare cases. The fund is to invest when a market crash occurs two or multiple times. At such a time, even a little fund can be very precious.

In the cryptocurrency market, many times after buying, we get stuck, and the bear market also starts. Sometimes we may end up using our spare funds also, and the market keeps going down. In such a case, we can't do anything except watch. Sometimes the market came down so much that expecting the market to recover fully may take too much time. In such a case our funds get stuck even if you want to sell it at the buying price. Doing DCA is the best strategy, and it can help to recover the loss faster and get profit even without reaching the buying price of the past, but where will the funds come from for DCA? So I think that it is very good to have a table earning source that can keep funding for DCA. Without having stable earnings, it is impossible to provide the funds for DCA. DCA is very effective unless one applies it to the wrong project.

Those are my thoughts I wanted to share. I will feel better if you benefit from it. And naturally I am not going to be responsible for your profit or loss. I just shared my little knowledge, but following it or not is your choice.