#TradingTypes101 Some essential tips and tricks for crypto spot trading (especially for beginners or intermediate traders): $BTC $BNB
1. Do Your Own Research (DYOR)
- Never invest based on hype or influencer opinions.
- Analyze fundamentals (project team, use case, tokenomics) and technical aspects (price trends, volume).
- Use tools like CoinMarketCap, CoinGecko, TradingView, and on-chain data (Glassnode, Santiment).
2. Master Risk Management
- Never invest more than you can afford to lose.
- Use the 1-5% rule: Risk only 1-5% of your capital per trade.
- Set stop-loss (SL) and take-profit (TP) orders to limit losses and lock in gains.
3. Follow the Trend
- "The trend is your friend" – Trade in the direction of the market (uptrend, downtrend, or sideways).
- Use moving averages (MA50, MA200) and support/resistance levels to identify trends.
4. Use Technical Analysis (TA) Wisely
- Learn basic candlestick patterns (Doji, Hammer, Engulfing).
- Key indicators: RSI (overbought/oversold), MACD (momentum), Bollinger Bands (volatility).
- Avoid indicator overload—stick to 2-3 reliable ones.
5. Watch Trading Volume
- High volume confirms trend strength.
- Low volume during a price move may indicate a fake breakout/pump.
6. Avoid Emotional Trading (FOMO & FUD)
- Don’t #FOMO (Fear Of Missing Out) into pumps.
- Don’t panic sell (#FUD – Fear, Uncertainty, Doubt) during dips.
- Stick to your trading plan.
7. Secure Your Profits #SaylorBTCPurchase
- DCA (Dollar-Cost Average) out of positions instead of selling all at once.
- Take profits at key resistance levels.
8. Avoid Overtrading.
- More trades ≠ more profits. Wait for high-probability setups.
- Less is more in trading—quality over quantity.
9. Keep an Eye on Liquidity #Liquidations
- Trade pairs with "high liquidity" (BTC, ETH, top altcoins) to avoid slippage.
- Low-cap coins can be manipulated—trade with caution.