đ§âđť đđ My checklist in trading đ§âđťđđ
Here is my checklist in trading;
PART 1
1. Checking Crypto Greedy Index:
Understanding market sentiment is crucial in trading. The Crypto Greedy Index provides insights into whether traders are excessively greedy or fearful, helping to gauge market sentiment. This information can inform trading decisions and help traders avoid entering positions when the market sentiment is overly optimistic or pessimistic.
2. Utilizing maximum 1-2x Leverage:
Using 1-2x leverage for long or short positions minimizes the risk of liquidation and prevents losses from exceeding the initial investment. It allows traders to maintain control over their positions without amplifying potential losses, providing a safer approach to trading.
3. Avoiding Late-Night Trading:
Trading late at night can be risky due to decreased liquidity and increased volatility, especially in cryptocurrency markets. Prices can fluctuate wildly during these hours, leading to unexpected losses. By avoiding late-night trading, traders reduce the likelihood of making impulsive decisions based on erratic market movements.
4. Managing Fear and Greed (FOMO):
Fear and greed are common emotions that can cloud judgment and lead to irrational decision-making. Recognizing whether one is experiencing FOMO (fear of missing out) or excessive greed helps traders make more rational decisions. It prevents impulsive actions driven by emotions and encourages a disciplined approach to trading.
Will continue in the next post âŚ
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