Before the Disaster
⚠️ Before you buy any coin or enter any trade.. read this!
🔍 7 MUST steps before entering any trade:
1️⃣ Check the overall market trend
· BTC is king: If BTC is in a downward trend, 80% of coins will follow
· Use EMA 50: If the price is above it → Upward trend, and if below → Downward
2️⃣ Look for support and resistance areas
· Support: Buying area (the price bounces back here)
· Resistance: Selling area (the price struggles to break through)
· Example:
· Buy at support
· Sell at resistance
3️⃣ Ensure the trading volume
· High volume = Real interest
· Low volume = Unreliable movement
· Safe average: Daily trading volume > 100 million dollars
4️⃣ Use the RSI indicator
· Above 70: Overbought (beware of buying)
· Below 30: Oversold (potential buying opportunity)
· Ideal level: RSI between 40 and 60
5️⃣ Determine your target and risks
· Risk/Reward ratio: No less than 1:2
· Example:
· Potential loss: $50
· Target profit: $100+
6️⃣ Always use Stop-Loss