Trading Code Lesson 1 (Fundamentals)
1. Before engaging in any trades, learn to research investment targets, analyze market capitalization, token economics, and calculate the token supply to gauge its future growth potential.
2. Master technical analysis, understanding how support, resistance, and trendlines function and manifest in the market. Combine this with volume-price analysis to evaluate if the project is a current market standout.
3. Cultivate a positive mindset. Understand the risks and potential losses associated with trading before contemplating potential gains.
4. Learn how to calculate position size, when and how to enter a trade, and where to set stop-loss orders. Consider why these setups are chosen and determine where to place take-profit orders (usually near support/resistance levels or trendlines).
5. Determine the appropriate leverage for contract trading. Calculate the acceptable risk based on stop-loss placement and adjust leverage accordingly, aiming for a favorable risk-reward ratio in your trades.
Subsequent lessons will provide more detailed explanations, including specifics on opening positions and commonly used trading techniques.
To be continued!
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