Let me share the most basic "rules" you should have when trading altcoins. They can be roughly summarized into 5 "self-questions". These 5 rules are all paid for with real money and regarded as iron rules. So far, I am still trying to do them every time. I hope these 5 questions can help you:
1. Have I fallen in love with this altcoin and started to have some fantasies of my own? (For example, I think the dealer is awesome, there will definitely be a big bull market next year, and this community is too united. This is the logic I often see "big Vs" say, but you have to understand that he said this to get you to carry his sedan chair)
2. Is there enough and strong evidence to support the logic of this order? (For example, it is detected that the dealer has shipped on the chain, or it is detected that smart money with a high winning rate is buying it at the first time)
3. Did I buy this coin because it has fallen a lot and I think it has almost reached the bottom? (I have seen too many retail investors use this reason to hoard altcoins and end up being stuck and selling at a loss. Low prices and good fundamentals should never be your reason for opening an order to buy altcoins)
4. Whose money are you making? (This pvp market is like playing Texas Hold'em. The exchange is taking the value of the banker, the banker is taking your value, and whose value are you taking? You have to think about who will be your exit liquidity. If you think about this question, you will know when to stop profit)
5. Assuming that my initial order opening logic is wrong, what situation should I stop loss when or when the price reaches? (For example, if you are long and see that the wallets sniped by the dev bundle in the front row have started to ship, why don't you run away)
I hope you can use these 5 questions to review all your current positions. Have you done it?
