Losing your expensive Bitcoins by making mistakes trading is definitely not a fun situation.
So, how we can avoid those mistakes in our trading? How to be mostly on the green side? First, it is important to note that to trade right requires attention and your one hundred percent focus.
Secondly, trading is not for everyone. The following tips are easy to internalize put into practice to succeed
=Start a trade only when you know why you’re starting and have a clear strategy for afterwards.
Not all traders make gains from trading, since this is a zero-sum game for everyone who benefits someone else loses on the other side.
=The Altcoins market is driven by large whales, the same ones responsible for placing huge blocks of hundreds of Bitcoins on the order book. The whales are just waiting patiently for innocent little fish like us to make mistakes. Even if you aspire to trade on a daily basis, sometimes it is better not to earn and do nothing, instead of jumping into the rushing water and exposing your coins to losses.
=For each trade we must set a clear target level for taking profit and more importantly, a stop-loss level for cutting losses. A Stop-loss is setting the level of loss where the trade will get closed.
Here again, it is important considering a number of factors when choosing a stop loss level correctly.
=Most traders fail when they fall in love with a trade or the coin itself. They may say, “Here it will turn around, and I will get out of this trade with a minimum loss.
=Little pig eats a lot, big pig gets eaten. This statement tells the story of the market profits from my perspective. To be a profitable trader, you never look for the peak of the movement. You look for the small profits that will accumulate into a big one.
=Manage risk wisely across your portfolio. eg, you should never invest more than small percentage of your portfolio in a non-liquid market ''very high risk'' to those trades we will assign greater tolerance – the stop and target levels will be chosen far from the buying level to make profit.
=Most Altcoins are traded according to the Bitcoin value.
Bitcoin is a volatile asset ''relative to FIAT'' and this fact should be taken into consideration, especially in the days when the Bitcoin value is moving sharply. Bitcoin and Altcoins have an inverse relationship in their value, i.e. when the value of Bitcoin rises then Altcoins are losing their Bitcoin value, and vice versa. When Bitcoin is volatile, our conditions for trading are kind of foggy.
=Most Altcoins lose their value over time. They simply bleed their value away slowly, sometimes rapidly, take decision to dispose than to keep when you notice drop in value.
=Ethereum ETH, Monero XMR, Factom FCT, DASH, are all leading coins and traded the most volume daily. You should follow the coin’s chart and identify low and stable periods. Such periods are likely to be a consolidation period by the whales, and when the right time comes, accompanied by a good press release of the project, the pump will start and they will sell in profit.
=The genesis of trading starts from ICO! A word about public ICOs ''crowd-sales'' Many new projects choose to make a crowd-sale where they offer investors an early opportunity to buy a share of the project (tokens or coins) in what is meant to be a good price for the tokens.
The motivation for the investors is that the token will be traded from day one on the exchanges and would yield a nice profit to the ICO participants. In recent years, there have been many successful ICOs, both the project itself and especially in measuring the yield for investors. Coins doubled, or tripled, their value and much more in relation to their value on the crowd sale.
=So how do you know if you should invest in an ICO? It’s not about science, it is important to pay attention to the level of seriousness of the project and its team. Look for the project’s website 'does it look like a child has built it during computer school?, Who is the team behind the project – Are they hiding behind nicknames or proudly present themselves on their website? Pay attention to the Bitcointalk thread 'does it exist at all? and how the team members respond to technical questions. Is there a large community behind the project? Expect to see a Slack gathering its community. Watch out the amount raised! A project which had raised too little will probably will not be able to develop over time, a project which had raised huge amount – there won’t be enough investors left out there to buy coins on exchanges. And most importantly is risk management. Never put all eggs in one basket and invest too much of your portfolio in one ICO. In conclusion therefore buy good ICO today to become a whale tomorrow when the ICO appears in the trading platform...
@udibekwe