Thread by @oshBTC

1/ It seems every #trader has to do the same mistakes as their predecessors. There are #wisdowms you will only understand, if you have experienced them yourself. In this thread I will give you the #wisdom, which can make the difference between being broke and driving lambos #btc

2/ Money is made in big swings

When realizing what profits can be made with trading, many start daytrading and want to #profit from every movement. You won't make more #money. Instead you will lose plenty of time. Watch big time frames and take positions for weeks #btc #trading

3/ When entering a #trade, have targets and a stop loss order

There is nothing more for you to do. There are two outcomes:

-you being stopped out
-you reaching your target

either is fine

realizing losses > being a bagholder
realized profits > unrealized profits

#btc #trading

4/ Sitting tight is the hard thing

When you enter your trade you may read about sth. on twitter or in a random telegram group. You probably want to exit the trade earlier, just to realize, you have been right all along and losing money because you became insecure #btc #trading

5/ Scale in an and scale out

You do not buy/sell at one price. You make a prediction and if it goes in your favour, you increase your position. If it goes against you, you close it immediately. Your mistakes will be less costly and you never even try to catch the bottom/top

6/ Be bullish in bull markets and bearish in bear markets

If you are in a bear trend for several months and have a neutral pattern, your standard assumption is to short. People might think it is too low already to short, but until proven otherwise, nothing is too cheap to sell

7.1/ kiss (keep it simple and stupid)

You might want to chart many different time frames and use indicators like MACD, RSI, OBV, CMF, VPVR and paint trend channels, triangles and wedges. You might be one of those wyckoff or elliot wave traders.

#btc #indicators #kiss #trading

7.2/ Using many indicators gives conflicting signals. You can make the most profitable trades by just using candle sticks, horizontal levels and moving averages. It is more important to properly move your stop loss and to have good risk management.

8.1/ Have proper risk management

Write it down. Have fixed numbers. Calculate the size of your position based on your bankroll. Many people starting to trade have no risk management at all and will ultimately go broke, just because of that.

#btc #riskmanagement

8.2/ #riskmanagement example

Let's say you have 1000$ and do not want to lose more than 2% (20$) on a trade. The asset you trade is at 10$. If you take 100$ and open a long trade with 5x leverage (500$), you have to set your stop loss at 9.60$ (-4%). 500/10*(10-9.60)=20

8.3/ Using higher leverage

Let's say in the example above we have significant support at 9.81$ and we set our stop loss to 9.80$. We could therefore use 10x leverage. Our position size is 1000$. We can store 90% off the exchange while having a position as big as our bankroll.

9/ Never get liquidated

By using high leverage it might sound good to use the liquidation as some kind of stop loss. There are reasons, why you should not do this. I recommend reading the following article regarding this topic.

medium.com/@Austerity_Suc…

#btc #bitmex #liquidation

10/ Trade Bitcoin

Some of the gains on #alts seem phenomenal. You don't have to agree with me that 99% of all #altcoins are scams. But #bitcoin has proven it self over and over again. Moreover it is the coin with the highest liquidity and possible leverage. Longterm that's key.

11/ Take money off the table

If 10-20% of your bankroll would substantially change your life or fullfill a dream of yours, take it off the table. Greed will probably bring you down at least once. It is good to look back at what you have achieved and earned in the past.