HONCLER TRADER's Memo for successful trading
Stop Loss is primary - Profit secondary.
The main thing in crypto trading is to avoid loss of capital.
Profit is secondary, it will appear sooner or later anyway. Remember this when opening each trade, that the main goal is not profit, but avoiding losses, and then your chances of profitable trading will increase.
Stoploss saves you money and most importantly time. Time is money.
Divide your capital into at least 3 coins, this will help you avoid losing all your money from unforeseen situations, such as a cryptocurrency scam. Even if the cryptocurrency is not a scam, it can collapse several times due to decisions of various Western courts, for example, as was the case with Tornado Cash (TORN). I would recommend that you split your capital between 3 and 10 cryptocurrencies. You can divide more than 10, for example into 20-50 coins, perhaps this is even better for security, but such a number of tokens becomes difficult to manage if you are a trader and not a simple holder.
Another step for security is to use a hardware wallet. I recommend keeping 15-30% of your capital in the SafePal S1 wallet, and the second in the BINANCE crypto exchange. Of course, I don’t think that anything can happen to this world’s largest exchange, but anything can happen in life, especially since not so long ago many people lost their money on the developing young exchange FTX.
Buy only crypto coins that already have popular ready-made products, for example CAKE, and do not buy coins that do not have a ready-made product that only talk about it, because there is a very high probability that it will not appear, and if it does appear, there is no guarantee that it will come when it will become popular.
Never trade futures. Of course, you can try, for information purposes and development it will undoubtedly be useful, but futures are a tool that attracts, inspires, brings a lot of money, and then takes it away when the next liquidation occurs. And the most unpleasant thing is that you can step on the same rake for a very long time, trading without stops, constantly increasing leverage from 3x to 100x, sometimes you may not even notice, as if you had just entered futures to carefully conclude a small deal . Trade with a stop loss, after a few minutes or hours you already have leverage two to three times higher than the original one, by the end of the evening or early morning you are tired and with a huge profit you go all-in with a leverage of 125x and pray that it doesn’t happen liquidation, but it still happens and then you go to bed and have nightmares all night, and the next morning you are completely devastated and you don’t have a dollar. Of course, sometimes I was lucky when I earned 5,000 from a hundred dollars or 4,000 from 300 dollars in half a day, but this is very rare and very dangerous.
If you decide to trade futures, then never mess with altcoins. There are two reasons why, the first is that on some fast-moving volatile altcoins, even a small leverage of 2-3x can cause large losses and liquidation of the position. The second reason is the loss of synchronization with Bitcoin - sometimes they move almost synchronously, and sometimes they lose this connection and you cannot close the deal, while on Bitcoin you could close the deal with a plus several times already. Also, the futures market is not synchronous with the spot market and there are situations when on the spot of the same coin you could close a deal with a huge profit, but on futures this squeeze did not occur.
And if you do trade futures, then always set a stop loss immediately after entering, rename the futures tab in the browser and name it STOP IMMEDIATELY. Never use high leverage 50x 100x. Imagine that on the first day of driving lessons you got into a car and started driving at a speed of 200 miles per hour, you will certainly crash to pieces. For Bitcoin, the normal leverage is 3-5x and I do not recommend raising the leverage above 10x, although 20x is possible, but as the leverage increases, it becomes increasingly difficult to place a short, almost break-even stop loss. With 100x it is impossible to place a stop loss right after entry, if you put a market stop loss next to the entry price you will be closed out with a huge unacceptable loss.
If you opened a deal and it gave you a good profit from 30 to 100-150 percent, don’t wait for more, close it. Because if you don’t close it, you can lose it and you will waste time, and you can even go into negative territory if you didn’t set a stop.
In general, never hesitate to take your profits and tighten your stops. You should always act as if it were your money. For example, at the beginning of the day you were afraid to enter a trade with your only 1000 dollars and were afraid to lose a few percent, not that you were afraid, but you didn’t want it, so you carefully waited for the entry point and protected yourself with a stop loss, and when you made a good profit, for example, 50% and you have about $1,500, for some reason you stop being afraid and stop defending yourself against stop losses, that’s the paradox!
Another very important disadvantage of futures is that you are always tense and tired, they tire you a lot and as soon as you get tired you start making mistakes, while on the spot you are resting all the time.
Try not to trade immediately after eating, because when you eat, your attention and mental capacity deteriorate because blood moves to the stomach. This greatly increases the likelihood of making a loss. After you have eaten, wait at least an hour before trading.
Never reverse the direction of trades after a prolonged decline or rise. You will simply catch the fomo and begin to roll over from long to short and back again endlessly, while increasing your leverage to make up for the losses from the revolution. Usually, with a late reversal, the price reverses and you lose all previous profits and enter a big minus and begin to win back and end up with account liquidation.
Please support the HONKLER TRADER by registering on the BINANCE crypto exchange.
New strategy:
To go long, use Spot without shoulders with a stop at breakeven as soon as the price allows you to place it. 90 percent of capital
For short use Futures only BTC with a stop of 1-3 percent, take 100 percent, 10 percent of capital.
The accounts are independent and do not borrow funds from each other. The shoulder is never touched or changed.
