After 5 years participating in the crypto and forex market, I have learned 5 things newbies should know to never burn their accounts.
The fifth thing will help new investors invest more safely and ease their mind a lot.
1. Understand the rules of the game you are participating in. The most basic thing is that you also need to know what spot is, what is futures? What's different about them? Advantages and disadvantages of each type. From there, based on your assessment of your personality, choose the subject that is right for you. You are a person who likes to eat fast and win quickly, has a lot of time to research, takes high risks, and has low capital. Then futures seems suitable for you. And if you have little time. You are someone who likes to eat consistently and can endure long term without worrying about the account. If your cash flow is good, investment money does not affect your personal life, then spot is for you.
2. Study and practice. After choosing a subject that you feel is suitable, take the time to study, research and experience it a lot. The time must be measured in years, it is impossible to succeed in just a few weeks or months.
3. Manage personal finances well. At this stage you need to know clearly how much your expenses or income are each month. If your monthly income is higher than your expenses, then ok you can think about investing. If you haven't done that yet, then temporarily stop investing. If you're not full yet, how can you worry about investing? If entering the market is not as favorable as you think, will you still survive well?
4. Choose for yourself a suitable strategy or trading system. If it is a spot, what is the appropriate DCA strategy? If the price increases, what happens when the price decreases? What have you prepared for it? If you don't plan ahead, you're planning to fail. If it's futures, what indicator should the trading system be based on: rsi, macd, bollinger band, ichimoku, etc. To be successful, you should choose only one system, practice it a lot and regularly. One more small note, please plan very specifically including TP and SL points. And always follow it like a robot, don't let emotions get in the way. Remember to read the last sentence again.
5. Finally, I would like to share a simple strategy that I have been applying for the past 5 years to help me make profitable spot investments even in a downtrend market, help me win front x15 or wemix x5, and many others. . Up to now, after 5 years, my spot investment is still profitable and cashing out regularly. I don't sell courses, nor do I have group calls for private bets to pay fees, so you don't need to be afraid of attracting chickens. I have a community chat group for everyone to learn and share with each other. And this is how I make money with spot.
Step 1: You need to know clearly how much capital you spend on the spot, how many stocks you want to buy, and what your profit target is. If the capital is 1000$, you can divide 5 children with 200$ each. This part depends on your personality. In the past, I started with a capital of only 10-20$.
Step 2: Select a list of coins to monitor. For example, the trend of new coins listed on binance exchange, coins according to who's trend, the current trend, memes,... after selecting, don't forget to compare the marketcap as well as the total supply, and the total circulating supply of them to Make a decision about which product to look for potential. This step requires writing down your thoughts and measuring them carefully. You can join the group and ask people to comment on the product you intend to buy. This is a great way to save time.
Step 3: Once you have chosen the goods, buy half or full or divide them as much as you want depending on your starting capital. Always leave money for dca, with altcoins dividing by 2 and dividing by 3 is very normal so choose specifically how much to add. And know clearly where to take profits. As for BTC, maybe 10%, 20%, 30% can gradually disappear. You are not a saint to know where the bottom is. After finishing all the goods, go to the last step.
B4: Wait patiently. If you are at an uptrend, you only need to wait a few months. If you are in a downtrend, waiting 1 or 2 years is normal. Remember to calm down and wait for the opportunity to come.
B5: always maintain cash flow from other jobs, don't let investments affect your life.
Futures:
https://www.binance.com/vi/futures/home
The difference with spot is that spot is to buy and hold that coin or token as your own, you will never burn your account, and futures means you will not hold any coin or token long term, in addition you also Using the floor's leverage to lend to you will lead to your account being burned.
For futures, newbies should only trade BTC one line is more than enough, choosing a moderate leverage, the maximum I think should only be x50, I usually use x30. Choose the right trading strategy like number 4 above, experience it a lot. The amount of money spent on futures should not exceed 30% of your total investment amount. Calmly disobeying orders, not continuously disobeying orders. No matter whether you win or lose, you must know how to rest. If you have a profit, remember to close it, if you have a loss, remember to cut it.
Each trade order should not exceed 5% of the capital. If applied this way, it might take a while to burn your account.
And above is my experience and enthusiasm that I want to share with you in the hope that you will find it valuable. If you like it, please give me a like. Thank you!
Wishing you always have a pure mind no matter what the market is like. $BTC #Write2Win #bitcoin #BinanceFutures
