[ANN][VOOT] OLD THREAD

My previous posts about crypto trading recieved some good comments, I thought I'd do a quick follow up and give you some pointers. I realize I am in the Vootcoin thread, but I think this coin for some reason is attracting a lot of new blood, so that is why I decided to post here. What I am going to say does apply to all crypto trading, not just to Vootcoin. I am invested in Vootcoin though (among some other coins)

Springfield's 6 rules of crypto trading

1. It ain't a loss if you don't sell.

Meaning that even if the coin you invested in drops a lot in value you haven't lost yet. You lose when you put in your sell orders. Unless there is something really wrong with a coin, i.e. developers running away, selling off premine, fundamental technical flaws etc etc there is absolutely no reason to sell at a loss. Remember my previous posts, you should ban all emotion in trading, you should only play with money that you can afford to lose. Look at it this way, if you go out drinking with your buddies you bring some cash. At the end of the night it's all gone, do you think with every beer you buy "Oh man I am down another $5" no? Good, you should think the same way about your money you invested in a coin. Markets fluctuate, even a sharp drop in price does not mean the coin is dead.

2. It ain't profit if you haven't sold.

This might sound contradictory to rule 1, but as I said earlier: decide a pricepoint at which you will sell the majority (see rule 3) of your investment. Of course we all fantasize about "what if this and that coin reaches $10? I'd be rich" it's good to daydream, but it won't help you because it's all emotion and we have learned that emotion will destroy solid trading decisions. At night, away from the computer, dream by all means. But when trading be focused. Say you buy a coin at 1000 Satoshi and based on analysis you think it's a good investment, decide a point at which you will sell. Is it 5000 satoshi? 7500 satoshi? Your call, go with what you think is possible. There is no way to predict which levels a coin will reach. After you set your exit price, stick to it & do not get greedy. Even if you buy your coin on Monday morning, and your target price is reached in the afternoon, sell You never know what will happen. There is however another strategy. Say you buy 200 units of coin X at 1000 satoshi, you dediced you exit point is 4000 satoshi. The price skyrockets and a couple of hours later coin X is trading at 4000 satoshi. You have to sell right? You can but if you have strong indicators that the coin will rise further, you could also sell 50 units at 4000 satoshi to get your initial investment back. This way you partake in the gamble risk free, but again set your new exit price. Repeat if the market conditions seem to favor this strategy.

3. Never sell all your coins

Even if you decided to exit at a certain price point, never sell a 100 percent of your coins, sell 90% to 95% you never know what will happen. Those 5 to 10 percent of your remaining coins could very well rise 1000% in value, but even if they turn to dust the loss is negligible. Just let them sit in your wallet and forget about them, look once a month at the going rate.

4. Analyze your coin

In stock market trading we call this performing due dilligence. Meaning analyzing the stock in which you are interested in. Translated to crypto trading you should ask questions like
Who are the developers? Are they senior members?
Check their post history, do they seem trustworthy.
What does the coin offer that other coins don't?
Do you understand the technicalities of the coin?
Look at daily volume, is it traded a lot or just a couple of hundred dollars a day? (check coinmarketcap.com and select "daily volume")
Etc etc
Basically ask yourself if the coin and it's developers look "legit" and sustainable But remember by no means can you be certain that a coin is legit crypto is all smoke and mirrors, it's the Wild West out here. There are no regulations, people can do whatever they want. But, you should try to analyze the best you can.

5. Don't get caught up in stories of people that get rich overnight

Yes it does happen, but it takes a large investment to get rich quickly and most people (including myself) will not risk investing large sums of money in crypto trading.
Profiting from crypto trading is slow and steady if you do it right. Of course you could drop $5000 in a coin you feel that is legit and hoping it quadruples overnight, but only if you can afford to lose it all. Most of the time however this approach will lead to loss.

6. Diversify your portfolio

Never put all of your money into one coin only. You can never be sure in this business. Let's say you have 1 Bitcoin you can invest, put fractions of it into multiple coins (after you looked into each coin of course) We call this hedging, even if one of your coins tanks in value only part of your total investment will be caught up in this downtrend.

The above rules are off the top of my head, should you have any questions feel free to ask.