Trading and investing rules

[Borries]

When it comes to trading and investing everyone has their own set of rules they obey. I made a list with my rules and that made me curious, what set of rules do you use?

My own rules:

- Never invest in a program that "makes money for you." (Programs that trade for you, magically make money, ponzi scheme, ...)
- Never buy at a sudden rise in value but wait untill the market is stabilized. (Short term)
- Never have more than 20% of portfolio in one coin. (yes, altcoins)
- Don't trust anyone! (do your own research!)
- Check the sources of news. (do your own research...)
- Know the coin! Active team? Goals? Coin supply - market cap? exchanges? ... (well, do your own research...)

Answers I like:

Invest what you can afford to lose

There is no such thing as a missed opportunity.

Focus on the initial investment and don't get disturbed by new coins which might cause you to loose your focus on your current portfolio. Patience is the key in such instances.

   Or: don't sell your initial investment in order to buy a new coin or ICO but wait for the price to reach your goal (or get the money from another source.)

- Don't give in to emotions and buy or sell at the price you originally intended.
- Manage your money.
- Have a good reason why you are buying or selling.

[monalia]

When it comes to trading and investing everyone has their own set of rules they obey. I made a list with my rules and that made me curious, what set of rules do you use?

My own rules:
- Never invest in a program that "makes money for you."
- Never buy at a sudden rise in value but wait untill the market is stabilized.
- Never have more than 20% of portfolio in one coin.
- Don't trust anyone!
- Check the sources of news.
- Know the coin! Active team? Goals? Coin supply - market cap? exchanges? ...
 

Your way of own rules is good to this platform. But everyone have one trusted cryptocurrency is available in personally so I have one dought your thought if you don't believe anyone how you invest in cryptocurrency. Because every investment concepts is make money in this platform. So you should trust one best coin and you should invest it that is the best trader policy.

[Yaunfitda]

When it comes to trading and investing everyone has their own set of rules they obey. I made a list with my rules and that made me curious, what set of rules do you use?

My own rules:
- Never invest in a program that "makes money for you."

I think you are talking about cloud mining, bitcoin doubler, HYiP and others which is pure scam.

- Never buy at a sudden rise in value but wait untill the market is stabilized.

Of course, never buy at top price. You should always buy when the price is cheap and hold in long term.

- Never have more than 20% of portfolio in one coin.

Not sure about this advise though. I assumed that there are a lot of members who hold bitcoins at 50%++ and the rest altcoins.

- Don't trust anyone!

Yes. No brainer here.

- Check the sources of news.
- Know the coin! Active team? Goals? Coin supply - market cap? exchanges? ...
 

Yes, we need to do our own homework. Check the team behind, whitepaper, road maps. Search the web for anything about the coin that you are going to invest and weight the risk.


And the golden rule: "Invest what you can afford to lose. Don't put your life savings on crypto. At least give yourself some buffer in case something went wrong with your investment.

[npredtorch]

- Never have more than 20% of portfolio in one coin.

Not sure about this advise though. I assumed that there are a lot of members who hold bitcoins at 50%++ and the rest altcoins.

I have a strong feeling that he meant alt coins with that "one coin". So having 50% or higher for bitcoin doesn't break that rule.
I, myself also consider holding btc as somewhat safe than any other alts.

[Flexystar]

That is a good list and its really generalised idea about the trading of crypto currencies. However we need more extensive study of the field and the coin which we are going to trade because without the sufficient knowledge we can never know how to play with hat coins in the market. There are more than 1500 coins to the date and on the CMC it can be clearly seen that after the top 50 coins what we see is just the crap. So my point being is never to go down below that line as long as we are sure about the coins below that point. There might be coins coming out of new ICO's but as long as it is not in the discussion or its not having more green trust we should not try out different coins.

[bering]

good rule and basic guideline to the newbie who interested to invest and do crypto trading but don't trust anyone is not good option because sometimes we need people feedback to get reference investing at the particular coin or sites and also have more than 20% in one coin not always bad especially bitcoin that many people even had more than 20% in bitcoin from their total crypto asset

[Lanatsa]

When it comes to trading and investing everyone has their own set of rules they obey. I made a list with my rules and that made me curious, what set of rules do you use?

My own rules:
- Never invest in a program that "makes money for you."
- Never buy at a sudden rise in value but wait untill the market is stabilized.
- Never have more than 20% of portfolio in one coin.
- Don't trust anyone!
- Check the sources of news.
- Know the coin! Active team? Goals? Coin supply - market cap? exchanges? ...
 

Basic rules but in nos. 2 and 3. Those things would really be hard since as traders we wont even know on when the market would stabilized because its never been a stabilized market since its too volatile. 20%? I don't think so that most traders would really be contented with this gain. for daily or day trading then its considerable but for long term trading I would say most people would expect much more higher.

[Idrisu]

My golding rule is never invest the money I cannot afford to lose into cryptocurrency! I stand with this rule as if my life depending on it.
Most of the rules you have listed are all good and for you to become a successful traders you most become fully follow those rule with complete accuracy. I have loss some money some years ago because of neglecting my trading rules and follow some thought that comes into my mind.

[BigBoy89]

When it comes to trading and investing everyone has their own set of rules they obey. I made a list with my rules and that made me curious, what set of rules do you use?

My own rules:
- Never invest in a program that "makes money for you."
- Never buy at a sudden rise in value but wait untill the market is stabilized.
- Never have more than 20% of portfolio in one coin.
- Don't trust anyone!
- Check the sources of news.
- Know the coin! Active team? Goals? Coin supply - market cap? exchanges? ...
 

20% into a coin?! Definitely this is NOT a good bankroll management and could fail you big.
IMO a trader must invest 3-5% absolute max into any alt!

[Beefcake]

I got lots of rules, but my most important one is that 'there is no such thing as a missed opportunity.'  Following this, I will never rush in to buy the next big thing without first performing due dilegance.  You might say it isnt true, but then I would say that there is a great opportunity every day of the week.  So if I missed yesterday's then I only have to find today's.  And you only have to find a small number of them to truely be successful.

[harizen]

- Never buy at a sudden rise in value but wait untill the market is stabilized.

It depends on the situation so better study the current trend.

There are chances that you can get a decent profit out from buying during the sudden rise. Analyzation must take place here because as always, you will lose money here if you don't play it right and the execution goes wrong.

- Never have more than 20% of portfolio in one coin.

If a coin can be considered as having a cheap price, then why not acquired a lot?

There are people nowadays who holds lots on a specific coin without risking money at their own pocket. How is that possible? By circulating the profit they got from the start, they able to take advantage of every dips resulting on more coins on hoard.

[Shishir99]

I agree with your most of the rules.
But sometimes some of these rules doesn't work.
I think everything depends on the situation of market but these are the basic rule in cryptocurrency that everyone should know.

[herurist]

When it comes to trading and investing everyone has their own set of rules they obey. I made a list with my rules and that made me curious, what set of rules do you use?

My own rules:
- Never invest in a program that "makes money for you."
- Never buy at a sudden rise in value but wait untill the market is stabilized.
- Never have more than 20% of portfolio in one coin.
- Don't trust anyone!
- Check the sources of news.
- Know the coin! Active team? Goals? Coin supply - market cap? exchanges? ...
 

I believe people has their own rules depend their knowledge and experience but you have a good rules too. From your rules I only use " don't trust anyone " believe in me and my skill to get better result. I have bad experience when replace my trust into another person or tools ( bot ), make me loss and also stupid. Because of that i decides to do all activity by my self and face the risk, but never forget to always fix my strategy. That's all and see you next time.

[zxl912157]

- Don't trust anyone!

 

I do not agree with this sentence, how I do not believe in someone who gives the right information.
maybe we should not believe in people we do not know. that might be good.

[wayaneka]

I used also last of your rule for long term investment, and i always thinking twice before decide to make investment in any coin. I make own reasearch but also i compare my research to other research to make sure iam more understand the detail and the purpose of the project. For day trading my other rule is always use stopp loss to minimize the risk.

[Borries]

I see there's a lot of disagreement with my personal rules, I'll edit my post so it's more clear what I mean...

[Hui8]

Thats a goo personalised list you have made for the set of rules. I believe that this should be followed by every new traders in the market. Nonetheless I follow all these rules always. What I focus more on is the "do your own research" thing. That the best approach you have mentioned here because without any proper research we can not really get feel for whats going on in the market. We can do investment into different coins but its always hog in cog that you will end up with great deal of the era. It never happens now a days. Most importantly we must focus on the initial investment and should never get disturbed by incoming coins which may loose our focus from the current portfolio. Patience is the key in such instances.

[TorbiK]

I noticed that when I give in to emotions and buy or sell at the price that different from that what I originally determined when do research. I'm starting to lose money. You need to manage money correctly. Always know for what reason you are buying and for what you are selling. And know both these reasons before you make a trade.

[zanezane]

- Never buy at a sudden rise in value but wait untill the market is stabilized.

It depends on the situation so better study the current trend.

There are chances that you can get a decent profit out from buying during the sudden rise. Analyzation must take place here because as always, you will lose money here if you don't play it right and the execution goes wrong.

Well yeah those sudden pump can really give huge profit especially when you bought the coin before the hype but buying during the sudden rise is another story as you might get left out and loss more instead of profiting just like what happened in trx when some make an entry during the hype and suddenly the hype subside, and voila it's gone.