Introduction to Basic Trading Rules (part 2) || 10% payout to tron-fan-club.

Introduction

Hello friends and famz,welcome to my blog. I hope you're getting value from my content. In my last blog, I talked about basic trading rule that newbies can follow. These rules are fundamental rules that experienced traders still follow. Although they are basic but can be built upon as you make progress in your trading adventure.

Always Invest in what you understand

I believe anything you should be putting your money in the name of investment should be worthwhile. An important rule you should take note of is that you don't put invest your money in anything you don't understand. There is a need for quality research into any coin you would like to invest in,you need to check the credibility of those behind the project, check the chart,how the token or coin is distributed and the likes.

Always set a stop-loss

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Don't be too experienced especially when your new to the game. Some folks had been trading using demo and then they decided to attempt the real time trade,because they are used to the way demo works,they decide to throw cautious into the air by trading without using stop loss. Stop loss helps reduce your exposure to risk and save your portfolio from complete reck. Always trade using stop loss.

Always take profit at a given opportunity.

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It's always good to take profit at intervals. You can as well set realistic profit target for yourself and be sure you're not greedy about it. The reason why many lost their profit is because they got greedy about it and wouldn't take profit as at when due hoping they will still see more rise or pump in a coin. You know the market is very slippery and subtle,it can turn against you in split seconds and then leave you with nothing if your are not careful. So always ensure you take profit at intervals,no matter how small it is.

Don't jump at just any coin; beware scam project

It's no more a new that there are so many new project out there with their coins flying all around. You see them pumping aggressively most times. Some of these coin are scam coin. What they do is to pump and dumps the coin on their investors, leaving them with barely nothing.

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So do well to look out for coins like this, I think meme coins fall largely in this area and that's because most of this coin have no use case and purpose for existing. Don't get carried away with the pump of these coin. Take time to do some research.

Learn from your errors and mistakes

Most of the experienced trader became very experienced by learning from their mistakes and errors of the past. Only a fool will keep making one mistake repeatedly. History always repeat itself in the market and you can visibly see this if you observe using a chart. You will see pattern forming again and again. If you made a mistake at any point,take note of that point and reposition yourself to do the right things when that cycle or pattern reoccur

Final thoughts

These are basic rules that can set you on course and keep you running until you start figuring stuffs yourself. There is really alot you will get to know by the virtue of experience but you can always start off with the rules outlined in the part one and part two of this lectures.
Thanks for reading through.

Regards:
@lhorgic♥️