Pro Tip For New Traders ^
- Stop looking at price per coin.
- Price per coin does not matter.
- Start looking at market capitalization (price per coin x max supply).
- Just because a coin is under 30 cents, doesn’t mean it has large upside. Supply limits it’s growth.
New Traders, don’t fall into the Monte Carlo Theory:
You are so keen into believing that a certain outcome will occur that you establish a bias towards the pattern.
“If you lie to yourself enough times, you start to believe it”
Rules I follow:
- Trading isn’t a hobby. Learn everything
- You need good computing power
- Your initial capital is everything
- You’re not on Wall Street. Sit down
- $5K or less isn’t worth day trading
- Take profits you idiot
- At times, it’s okay to bet big (and lose)
Two Pools Theory:
- Best traders use the "Two Pools Theory"
- Or... short-term trades vs. long-term trades
- Short-term are your quick hits. Get in, get out. Daily or weekly.
- Long-term are years long.
- You make profit in short-term to fund your long-term.
News Trade Theory:
If there are RUMORS of an announcement, the pump occurs DURING this phase. Mass sell-offs occur AFTER the LIVE announcement day.
ONLY when an announcement is OUT OF NOWHERE, is when news DRIVES price.
When to sell:
- Coin pumps & gets stagnant. Sell.
- Once a major announcement occurs. Sell.
- Notice more sell volume. Sell.
- Bearish chart patterns. Sell.
- FOMO. Sell.
- Doesn't pass sniff test. Sell.
- Consolidation; money to be made elsewhere. Sell.
- McAfee. Sell.
Valuable lesson on major announcements.
“Buy the rumors, sell the news.” This is a short term strategy. Buy back in once the dust settles.
^ 
@cryptochoe
Blogs for my own knowledgebase and educational purposes only
