The Best Money Maker Around - Trading!

Trading...

Most people join Steem because of the money that they can get, because of the rewards that they see big-time Steemian get! And indeed there is money to be made in Steem, but there is another whole world of better rewards... a world called trading!

Most people that don't know a single thing about trading think it's just gambling, mostly because they think there is no way to know where the price is going to go, they think there is no way of trying to predict the future... and they never try to look it up... but this belief is wrong!

Let's talk about rules... because good traders have rules!

First, don't try to catch the trade let the trade come to you!

What this means is simple, wait for the right entry price, a price that, not only the most probable thing to happen is the scenario you are thinking about, but also a price that you can have good risk management by putting a stop loss near the entry.

Second, use limit orders and try not to use market orders!

Market orders are for people that are trying to catch the ups and down, for the FOMO traders that base their trading on sentiments and not on TA, for the ones that don't know anything about trading, a good trader knows what he is doing, knows where the price is going and where it's going after and puts the orders there... For example, I'm now waiting for the price to reach my limit orders to short the market... If the price dumps before I don't really care since I didn't lose any satoshis... if the price pumps, well, the shorts will be filled and I'll be stopped out at a 1% loss. Not really that much.

Third, always use stop losses!

It's a must, I've seen people lose thousands because they forgot to put a stop loss... So, as soon as you enter the trade put a stop loss. I even go so far as saying, put the stop loss before the actual limit order... this is what prevents you from losing huge amounts of money!

Fourth, don't move the stop loss unless you know what you are doing...

I've seen people moving stop losses a little bit more and a little bit more until they were near the liquidation price! And guess what happened? They got liquidated...

Fifth, don't overleverage if you don't know what you are doing!

I've lost quite a bit of money by overleveraging, I already got it back because I set a rule for myself to never go past 10x, even though I mostly use 5x.

Sixth, LEARN LEARN LEARN.

There are countless theories and ways to trade out there... We have Elliot Wave Theory(EW), Price action(PA), we have people that only look at the RSI, we have people that count volumes, other's just do swings (long-term trades) others that only do scalp trades (short-term trades), there are countless ways to trade!

In my opinion, PA is the easiest one to learn and probably the best for people that don't want to go too deep into trading. EW is the hardest one, but mixing EW with Fibonacci makes a trader a lot of profit!
Of course, none of the theories and ways to trade is 100% right, they just increase the probability of the trading going the way we want.

Seventh, always have good risk management.

I can't emphasize this enough! Always! Always! Know your entry, your stop loss, and your take profit target! Don't risk too much in a trade, between 1-5% is ok, maybe go to 10%, but never more than that...Even the most noob trader can have profit if he has good risk management.

Eight, keep your emotions and biases in check.

Remove any thought about bottom or moon from your mind, a trader does not trade based on his emotions, a trader trades based on what the indicators are telling him! Do not FOMO into trades! Wait for the indicators to tell you "Hey man, you see this nice bearish divergence in the RSI? It's very likely for the price to drop... Maybe you should give it a try."

Ninth, if you are going to talk with other traders, ask them why they are doing this trade or the other trade...

I've seen so many bullshitters in the crypto trading space! I've seen scammers, trading groups and fund managers that don't know anything at all about trading and are just there to scam people! Do not trust other people with your money! Learn how to do TA yourself!

Tenth... traders deal with the most likely scenario, never with an absolute scenario.

What I mean by this is that a trader can't say: "It's going to dump or it's going to pump" because even though the most likely scenario might be a dump, the price can go the other way, I've seen it happen... For example, the most likely scenario for bitcoin at the moment of me writing this is to dump by a 100-200$... Can it happen? Yes... Will it happen? Who knows...

I always get pissed off when someone asks me "Hey, should I sell or should I buy?" and I answer "Well, the most probable scenario is for the price to go down..." and they reply "Ok, but is it going to happen? When? And a dump to what price?" I'm a trader, I'm not psychic! There are no certainties in life...

And remember, don't go for big wins, go for small wins that compound over time... The first time I traded was in the Guild Wars 2's market, an MMORPG game. I was the weakest and poorest member of my guild, after 2 months I was the richest, everyone was asking me for money, I made per day 10x the amount I started with. Why? Because of the power of compound!

If a trader starts with 100$ and has 5% profit per day, after 2 months that same trader has: 1867$... and per day he makes around 93$...And this keeps compounding! After 4 months he has 35.000$ and makes 1700$ per day!

Playing with the crypto market is just like playing with the Guild Wars 2 market, one needs to look at it as a game, as a hobby, and not as work!

I've made a little bit of money trading, and I already removed the amount I originally started with... I'm aiming to do the 0.01BTC to 0.1 BTC challenge and after it, the 0.1BTC to 1 BTC...And who knows... 1BTC to 10BTC and 10BTC to 100BTC... soon enough I'll get the whole BTC supply!

Images Free Source - 1, 2,3,4,5,6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22 - Tradingview snapshots too.

Question of the day: Are you a trader? Do you follow these rules?

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