A seasoned trader who faced early losses eventually found success through discipline. Their strategy: spend 80% of the time waiting, and 20% trading, targeting a few key market waves each year.
16 Core Principles for Profitable Trading:
Market Timing: Buy altcoins in bull markets, Bitcoin in bear markets.
Volume Signals: Look for rising volume at bottoms — a sign of potential uptrend.
Uptrend Entries: Buy on pullbacks to key moving averages.
Trade Less: Focus on major trends, avoid overtrading.
Position Sizing: Never go all-in; control risk.
Loss Control: Don’t average down; use stop-losses.
Use News Wisely: News can guide, but not dictate trades.
Stick to What You Know: Trade familiar coins.
Stay Calm: Don’t let emotions drive trades.
Be Contrarian: When everyone’s bullish, risk is high.
Hold Cash: Wait for clear signals.
Avoid Hype: Hot trends fade quickly.
Have a System: Create and follow a strict plan.
Think Long-Term: Success takes time and patience.
Use Spare Cash Only: Don’t risk money you need.
Understand the Game: Institutions have the edge; trade strategically.
Engulfing Candlestick Pattern: A Powerful Signal
The engulfing pattern is a two-candle reversal signal with a 98% reported win rate over 10,000 trades.
Bullish Engulfing: In a downtrend — a large green candle fully engulfs a smaller red one → potential reversal up.
Bearish Engulfing: In an uptrend — a large red candle engulfs a smaller green one → potential reversal down.
Trade Plan:
Entry: After confirmation by a third candle moving in the same direction.
Stop-Loss: Just outside the pattern (below for bullish, above for bearish).
Target: At least the size of the engulfing move; extend using price action.
Best Use: At key support/resistance levels for higher accuracy.
Trend Trading: Follow the Wave
Trend trading means going with the momentum — up or down.
How to Spot Trends:
Trendlines/Channels: Uptrends = higher highs/lows; Downtrends = lower highs/lows.
Moving Averages: Strong trends stay above or below key MAs like the 20, 50, or 200-day.
Slope: Steep trends (50°+) signal strength.
Momentum Indicators (TRIX): TRIX below zero = strong downtrend.
Common Mistakes:
Late Entry: Increases risk of reversals.
Ignoring Stop-Losses: Leads to big losses.
Trend Strategies:
MA Pullbacks: Buy on dips to major MAs during a strong uptrend.
Channel Trades: Buy low/sell high within a defined trend channel.
How to Beat Fear of Losing Money
Deliberate Loss Practice:
Try Losing on Purpose: Risk a small amount (e.g., 100U) while sticking to your strategy.
Goal: Get comfortable with losses — they’re part of trading.
Result: Often leads to unexpected wins and builds trust in your system.
Position Sizing:
Sleep Test: If it keeps you up at night, it’s too big.
Increase Slowly: Only size up when you're comfortable.
> Without a trading system, fear is justified. Build one first.