Here are several trading principles that will help improve the quality of your trades:
- Identify around 5 coins that you will consistently trade to understand their behavior.
- Always start your analysis with a higher timeframe (HTF) of at least 1D to identify key zones and determine the trend.
- Examine the background of the coin, events, potential unlocks, news, etc.
- After the previous steps, switch to a 4H timeframe (4H TF) and identify smaller key zones for yourself.
- Define your target and stop loss if necessary. It’s important that the target is not higher than the nearest resistance, and the stop loss is not above the nearest support.
- Trade only when the trend is confirmed. There’s no need to open a trade against the trend, as there is a high probability of getting liquidated.
- Find auxiliary indicators and patterns that can help automate the trade to some extent.
- When you’ve chosen a trade after all the steps, think about what you will do if the price goes in the opposite direction and why it might happen.
- Always take partial profits, and never enter a trade with a large percentage of your deposit. Diversification is crucial.
- Stay composed. If your stop loss is triggered, it means it should be, and the plan is not working. Avoid opening a new trade until you resolve the issue with the old one. Repeat all the steps in case of failure and use the experience gained in future trades.