Five rules very important in trading

[Sanusi]

I think this is an important notice where by an individual or a trader needs to know before buying crypto currency,its no applicable to crypto currency alone but to all business platform. This is information is also useful for the begginer and professional traders.

 

[ronaldlorenzo01]

Five rules in important in trading:
1. The first thing is have a plan. It is not the best thing to jump right in.
2. Test it out. Any investor can use historical data to see how a strategy would have played out in real life.
3. Leverage Technology. It can be hugely helpful in backtesting potential strategies. But the use of the internet and technology doesn’t stop there.
4. Don't risk all your capital. his way, there’s no chance of you being completely wiped out. You’ll also have money on hand to pounce on any good buying opportunities.
5. Read, read, read. There’s no excuse to make trades that are not backed by a thorough analysis of the underlying investment, as well as the broader economic and geopolitical trends that might impact performance.

 

[Atiqurrehman]

It doesn't matter what market you trade in. If the stock, forex, or futures market is open every second, it provides an opportunity to trade.
...

Step 1: Set up the business. ...

Step 2: Commercial Trigger ...

Step 3: Stop loss ...

Step 4: Price target. ...

Step 5: Reward risk.

 

[Waseem74]

Each of the rules below is important, but when they work together the effects are strong. ... A trading plan is a written set of rules that specifies a trader's entry, ... Rule 5: Become a Student of the Markets. Another important rule: Never invest more than you can afford to lose. You need to protect your capital. So only trade with amounts that you truly feel comfortable with.

 

[Sheyemanu]

Concerning this thread on rules for trading, I like all your points especially point number one. Most cryptocurrency traders still don't get this. When bitcoin started surging in price a lot of people started buying it in bulk instead of waiting for the price to fall. This is one the biggest mistakes you can make in cryptocurrency trading. Goodluck to all traders

 

[Nomad]

The only rule that matters is not to panic sell. A lot of traders panic when the price falls and they begin to sell the currencies. This will led to even further price drop.

 

[delnovem]

1. Always Use a Trading Plan. 2. Treat Trading Like a Business. 3. Use Technology. 4. Protect Your Trading Capital. 5. Study the Markets. 6. Risk Only What You Can Afford. 7. Develop a Trading Methodology. 8. Always Use a Stop Loss.

 

[Kelly5]

These rules are very simple and are also very necessary to keep if you want to keep my our money and investment safe. Otherwise you are bound to loose more money than you can bear trading carelessly

 

[Mostee501]

Normally one should only invest with what they can afford to lose to avoid depression and negative effects of losses emotionally in the brain.

 

[Kelly5]

It is very important to make your research before buying a coin and not buying that coin before making your research on it. That will be a colossal mistake on your part for investing

 

[Grandeur]

I agree with the options you have listed but number one, not so much, the price one buys at a low could be high for someone else and vice versa for instance there was a time Bitcoin was only $1 now $38k which is of course high

 

[eLdavis]

Though i am not into crypto trading, but i do forex trading. One simple rule i follow is that i dont trade more slots than the capital i have. And i dont over trade. I have a daily target, and once i am able to get this, i rest for the day.

 

[Snazzy001]

I like your contribution when it comes to our development in cryptocurrency world but I don't seem to fall in love with the number three

 

[Ub40]

You just raised vital points above though I still feel like all may not apply. For instance, number 3, where you say one should not panic to sell fast when coin reduce in value as it may rise again soon. True. But remember that at times coin can remain reduced in value for a very long time to the point of losing to the point of becoming worthless. so it will be be better to take some profit before it goes worst. It is just my opinion.

 

[joy101]

This is a very good point because for one to make it in buying cryptocurrency you need to buy it in a lowest cost and sell it when the price has increase in the market.

 

[ahmedo24]

This is a very good point because for one to make it in buying cryptocurrency you need to buy it in a lowest cost and sell it when the price has increase in the market.

Yeah and you also need to buy at different rates so you will be able to minimize your loses and maximize profit eventually. I keep learning on daily basis

 

[greenie]

They are actually very good tips and they are what I am well aquainted to each time I want to invest into any business no even Crypto currencies, I don't rush, I read a lot and I am also very patient when it comes to Investing .

 

[Dagm1]

They are indeed very solid ideas, and they are what I follow whenever I want to invest in any business, including Cryptocurrencies. I don't rush, I read a lot, and I am patient when it comes to investing.

 

[Bousine123]

Thanks for sharing this with us, the best thing to do to avoid scam when trading is to always Find out about the trade before investing and also it is not good to use all your money to trade.

 

[Kaffyfolla]

​

Have a plan, when it comes to trading, it may not be the best idea to just jump right in. It’s important to take some time to outline what you want to accomplish and establish a set of rules that will allow you to achieve good returns and manage risk.


Your plan should include rules on when to buy investments and when to sell. It should also outline how much cash you want on hand at all times.