Some of you may be brand new to trading. Or perhaps you are like me, who had watched shows, read articles or had friends which you've heard about theories to trading but just never quite done it yourself.
As many of us are still new and learning, otherwise we will not be here. This thread is going to be one of the most valuable thread in the forum that you should always come back to when you're lost and unsure what to do. New or old alike.
The commandments of trading (Crypto currency):
- Buy Low, Sell high
This is possibly the most obvious statement but it carries a world of depth in its meaning.
If you see a growing trend and feel like you're about to miss the train, first tell yourself this:
"There will always be another dip.... Always... Always.... Always.... Always.... Always.... Always...Always... Always... Always...Always..."
- Doesn't matter if there really isn't. There usually is even at a higher price (remember, you buy the growth, not the price tag on the coin).
- Ask yourself do you understand the coin? Have you been observing the coin long enough to know whether this is an all time high, or a supported growth spurt.
- Apply your technical analysis (check the technical analysis thread: viewtopic.php?f=2&t=27) and find he low cycle of the coin.
- Ask friends who have been owning/watching the coin long enough. Is this a first time occurrence, if it is, be very weary, it can be aonce off.
Holding back is actually a very difficult thing to do, especially for beginners. but remember, always wait for the low price to buy, and sell when its high.
Holding the coin when it is high is just as bad depending on your strategy.
- Do not hold stocks that are not growing
If you're investing in a high risk asset such as cryptocurrency, you really should be thinking of reducing your exposure to risk.
While you have to be a patient investor, you need to be aware that being patient with a slow growing, flat-lined asset is going to incur costs.
Sometimes you cannot help it, whenever possible, try to move to a more volatile asset.
But always assess the conditions before doing so, and its never a good idea to move your investment around too much.
- Hold on
If by some reason you end up holding a stock that has lost massively. Do not sell and hold out until it recovers as it will recover to day in the crypto environment, at least for now.
- Bitcoin is always there, for now
If you want an easy life just hold bitcoin. However this may not be the fastest way to profit
Let us know if this crypto-currency investing strategy works for you too? Great if we can share and bounce ideas on what works and how well / poorly it works too. Huat ah!!