Just thought I'd share the few simple rules I try to adhere to as much as possible these days. My main goal is to gather more $BTC, because I believe that that will be around for a while to come and will increase in value again, so, let's get to it then.
1. Half of my PF is always in $BTC, locked away on a Ledger somewhere I don't have easy enough access to. This is to protect me from going ham on alts or microcaps and always have a fair share in $BTC.
2. I never trade more than 1% risk based on the other half of my stack. Made a handy little calculator app for that based on stop and entry price but Excel will do just fine. The formula is fairly simple: ((RiskPercentage / 100) x CapitalSize) / (EntryPrice - StopPrice).
That formula gives you the suggested quantity to buy based on your PF. If your StopPrice would be hit, you would lose 1% of your total CapitalSize. Fairly simple right? I will post some more rules I'm using later, need to eat 🍪 first!
3. I trade only on the 4H and 1D timeframes. That way the amount of time spent trading is minimized. If a trade is taken on these TFs DON’T go lower to micromanage it! You’ve entered on a higher TF trend, ride it.
4. Keep to your stop. Don’t go finding excuses to move it lower. Only move it UP to trail profits. If you’re stopped out, pack your bags and move on to the next setup. Only look back to analyze what you did right and what you did wrong.
5. Finding an entry for me is based on a combination of PA (just simple horizontal lines), some basic patterns and @TrendmasterTM signals. I helped develop that last one, so why not give your new year a headstart by picking up a lifetime subscription? It’s cheap! #ShamelessPlug
I think that was it. If you have any questions don’t hesitate to ask. Back to the regularly scheduled dank memes!
