Selecting a Coin before Trade is most difficult for new Trader but today those issue is solved;
It’s okay to feel frustrated; trading can be challenging, but you can turn things around with structure and discipline. Let’s break this into actionable steps to help you select coins for trading and improve your process.
1️⃣. Mindset Reset
Detach Emotion: Don’t hate your mind; frustration clouds judgment. Start fresh every day and remind yourself that every trader goes through losses—it’s part of learning.
Focus on Growth: Shift your goal from "winning every trade" to "making fewer mistakes." Progress will come.
2️⃣. Framework for Selecting Coins
Here’s a method to streamline your coin selection:
a) Liquidity & Volume
Look for coins with high trading volume and liquidity (e.g., BTC, ETH, or coins with $1M+ in daily volume).
Avoid coins with very low volume, as they’re prone to manipulation.
b) Trend Analysis
Look for coins in clear trends (uptrend or downtrend).
Use higher timeframes (4H or daily) to identify the overall trend, then switch to lower timeframes (1H or 15M) for entries.
c) Volatility
Select coins that are moving. Check for coins with 5-10% price movement in the last 24 hours.
Avoid coins stuck in a narrow range.
d) News/Events
Check for upcoming news or events (partnerships, upgrades, or listings). News-driven coins often see strong moves.
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3️⃣. Process for Trade Setup
Once you’ve selected a coin, follow these steps:
a) Mark Key Levels
Identify support and resistance on higher timeframes (1D, 4H).
Look for areas where price reacted strongly in the past.
b) Use Indicators for Confirmation
Add simple indicators like RSI (to spot overbought/oversold levels) or moving averages (to confirm trend direction).
Avoid cluttering your chart with too many indicators.
c) Wait for Price Action Signals
Look for patterns like breakouts, retests, or candlestick formations (e.g., engulfing, shooting star).
Don’t rush—let the setup come to you.
d) Set Risk/Reward
Ensure every trade has a minimum 1:2 risk/reward ratio. This means risking $10 to potentially gain $20.
Predetermine your stop loss and take profit before entering.
4️⃣. Avoid Common Mistakes
Overtrading: Trade only 1-3 good setups daily or weekly.
Revenge Trading: After a loss, step away. Analyze what went wrong calmly.
Ignoring Stop Loss: Always use a stop loss to protect your capital.
5️⃣. Improving Analysis
Journal Your Trades: Write down why you entered, exited, and what went right or wrong for every trade.
Backtest Strategies: Use historical data to test your setups on charts.
Ask for Feedback: Share your analysis with others for constructive input.
6️⃣. Mindset Practices
Start with a small account or paper trading if you’re overwhelmed.
Stay consistent and treat trading like a skill you’re building.
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