This article gives the 6 notes when you place buy and sell orders in coin trading. It is for those who do not know anything about coin trading, want to reduce risks and increase their capital.
1.Determine the amount of investment and the desired return profit
Determine the initial capital investment as idle money. If you lose that money, it is treated as school expenses and will not affect your life.
If the initial investment amount is too large and you lose that amount, it is easy to create a depressed mentality.
Besides, it is also necessary to determine the desired income from investing in crypto. From there, give an appropriate initial capital.
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2. Determine your role in participation
TRADER- you only join in trading for a short time with higher risks and high profit.
HOLDER – You will hold the coins for the long term because there is not much time to monitor the market.
TRADER & HOLDER – suitable for people with a lot of investment capital, divided into many accounts to participate
3. Capital flow division for investment
If possible, divide the capital as follows: 50% for long-term, 30% for medium-term, and 20% for surfing investment.
Don’t invest it all in surfing. If you are lucky enough, you can have x2, x5, x10 accounts. However, the possibility of loss is very high when the market is unstable
For example, if you have a capital of $2000, you will slowly invest 2 accounts. If you are in a hurry to invest and the initial capital is only $500, the difficulty will begin. To return to the original milestone, you will have to x4 accounts. This is very difficult for beginners.
4. Mistakes when choosing coins to invest in.
A lot of you make the mistake of buying a cheap coin and hope it will quickly x2 x10. This is completely false and ignorant of the coin market.
For example, coin A costs 0.1 BTC, coin B costs 0.00000010 BTC (10 satoshis) and you never think what will happen if both coin A and coin B decrease by 1 satoshi. If coin A drops 1 satoshi, it means nothing. But if coin B drops 1 satoshi, you have just lost 10% of your wallet. This situation is extremely bad.
5. Intensive capital management
After investing according to the surfing, medium, and long-term trends, in 1 investment, you should not use the entire available capital for 1 order to buy or sell all the coins you have for one time.
When buying and selling, you need to combine technical analysis and news reading. In the experience of many people, technical analysis accounts for 20%, and 80% is sentiment analysis based on news. Therefore, when the market does not have too much notable news, it is mainly based on technical analysis and vice versa.
If the initial capital is small, it is best to invest in the medium and long term. And remember one thing that does not buy at a high price, but sells at a low price, because you never know that the price of that coin can go even lower to buy it back.
You have to be mentally strong. To do so, you must be a person with knowledge from items 1 to 5. You can refer to more crypto courses online, like this one Crypto Crew School reviews to choose a suitable course.
When the market fluctuates, it is necessary to determine where is the top, where is the bottom, immediately determine which price to buy and sell immediately. When the decision is to be decisive, buy or sell, or hold long. And once it’s decided, it won’t change.
Do not worry too much when losing, because it is easy to panic and make wrong decisions.