Golden Rules to follow in Crypto trading

Hello everyone,
Its Mr. Crypto India. I want to tell you about rules to follow to become a good crypto trader, everyone wants to become a good crypto trader, we analyse everything like charts, marketcap, prices, orderbook but we often forget our rules, the rules which we should always follow to minimize our losses.

No the successful trader is not me, i was lucky few times and then made many losses and then again bounced back and made profits by following strict rules, since then i decided to guide people about how to do successful crypto trading through a public telegram group Mr Crypto India, so that people won’t do same mistakes what i did in the past.

Cryptocurrencies are highly volatile as the market is small, lots of manipulation in crypto market, so its very much volatile, we need to be very careful while doing trades.

So lets discuss what are those rules which we should follow

1. Never invest what you cannot afford to loose:
   Only invest that much amount of money which you are willing to loose, as once you bought any cryptocurrency, consider that it is lost forever, why i am saying that it is lost forever?
   because losses don’t simply comes from market dips or our poor trading ability, there are some other factors also from which losses occur like Government Regulations, hacks and some bugs in cryptocurrencies, so always risk that amount which you can afford, never take loans from bank for trading in cryptocurrencies, we have to first see our financial condition and accordingly we have to invest in cryptocurrencies, personal suggestion invest only 1–5 percent of your total wealth, or you can calculate according to your financial situation.

2. Give Time to the market:
   Invest your time in the market, analyse the market how market is moving , what is the momentum, don’t time the market rather give time in the market, remember historical events, if you give good time in the market then you will learn from the past and will never repeat those mistakes, the more you give time the more you learn about market movements, many people i met they just want to time the market and they think crypto is quick rich scheme but its not so, if we dont have proper knowledge then at some point we will loose that money at any instance.

3. There is no such best time in market:
   Many of us wondered if we were an early trader or investor we could have made so much money, its not like that as the best time in the market was yesterday and the second best time is today, so don’t regret about why we haven’t came early, just focus on market momentum and market will give you good gains.

4. Expect Dips/Don’t buy in FOMO:
   There is lots of manipulation in cryptocurrency market, many factors are responsible to move the market in upward as well as downward directions like media hype , Cme and Cboe announcements for bitcoins, after their announcements bitcoin rose from 10k dollars to 20k dollars and then fell down to near 10k dollars in january , now currently near 11.5k dollars, so fomo means fear of missing out, we should never buy in fomo at all time high and then selling at all time low, so expect dips to come, have patience, dont catch the running train, wait for the train to stop at next stop and catch it.
   Remember when others are excited be fearful and when others are fearful be excited.

5. Never buy what you can’t understand:
   It’s a very important factor that always buy what you understand, as before investing or trading in cryptocurrencies , we have to understand about the project, about its technology, about its usecase in future, how good is their team, how they talk with the community members, so we have to understand these things before going in any investments and for day traders we have to understand the chart, its orderbook, whale manipulation so that we can easily do a successful trade.

6. Always pay attention to bitcoin prices:
   This is very important factor if we want to increase our bitcoins through altcoins, we have to see bitcoin prices, check bitcoin prices while doing trading from Bitfinex, as when bitcoin prices go in upward direction then altcoins see a dump because people sell altcoins and ride on bitcoin, similarly when bitcoin prices go down then also altcoins see a dump because people again sell altcoins and convert their money in fiat, we notice rise in altcoins when bitcoin shows organic growth or remain stagnant in price.

7. Diversify the Investments:
   Never put all your eggs in one basket, always diversify your investments, if we put all our investments in one coin then potential for maximum gain is more but potential for maximum loss is also more, like one coin gave us 50 percent loss and one coin gave you 100 percent profit, so as a whole we earned 50 percent profits. but what if we have invested in that 50 percent loss coin all the amount, we will be in a bigger loss than so always diversify the investments.

8. Learn from the mistakes:
   We all start as a newbie, we can’t be pro at starting stage, so when we are giving time in the market, then we should analyse daily why my trade is unsuccessful today, what are the measures i have to take next time so that it will be a profitable one, so learn and don’t repeat those mistakes then only we can earn.

9. Dont be greedy:
   Don’t be greedy like i want 100x or 1000x, when a coin begins to grow then with the coin our greed also grows, take profits in between, decide some targets put some for long term and rest take out from your decided targets, if we become more greedy then that coin will start to dip, so decide targets and take out profits or we can do one thing take out your investments at certain targets, and enjoy the free ride.

10. Set stop-loss:
    Set stop losses on trades as it will prevent us from major losses, set stop loss at certain level where we think that this coin bounces back from above that stop loss level, stop losses are necessary because when bitcoin pumps or dumps drastically altcoins prices also go down drastically so if we have set up some stop loss then we prevent us from major losses.

11. Never break above rules
    Thank you guys for reading i think it will help you alot, these are my personal views, i am not giving any investment guidance through this article.

Happy investing!
Cheers!