#tips4newtraders Today’s 10 Pro Tips On: Don’t Chase Pumps – Trade with Patience
• Define Your Rules Upfront: Establish clear entry and exit criteria before market open to eliminate impulsive, FOMO-driven decisions.
• Confirm with Volume: Always check that volume supports price action—thinly traded “pumps” often reverse just as quickly as they spike.
• Wait for Technical Validation: Seek a retest of breakout levels or specific candlestick patterns before allocating capital.
• Use Limit Orders Only: Pre-set your price levels to prevent buying into a rapidly climbing bid and losing control of risk.
• Risk Manage Strictly: Cap each trade at 1–2% of your account to keep emotional stress—and potential drawdowns—under control.
• Apply Time Filters: If your setup hasn’t triggered within your planned time window, cancel and reassess rather than forcing a trade.
• Assess Market Correlations: Compare related tokens and markets to determine if momentum is isolated or part of a broader trend.
• Implement Trailing Stops: Lock in gains systematically instead of guessing the peak of a parabolic move.
• Journal Every Trade: Record date, entry, exit, and rationale to identify and correct any tendency to chase pumps.
• Schedule Downtime: Build in structured breaks after each trade to reset mentally and reinforce a patient, process-driven approach.
Disclaimer: This post is for informational purposes only and does not constitute financial advice.