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9 trading rules help a trader earn $46,000 from $1,000 in less than a year

Author: FMZ~Lydia, Created: 2023-02-07 14:25:57, Updated: 2023-09-18 19:36:36


9 trading rules help a trader earn $46,000 from $1,000 in less than a year

No, I am not a successful trader. I have been lucky many times, and I am still refining and trying strategies; On the other hand, I am still one of the people who constantly trade to increase the profit of the portfolio. Although some results can be attributed to luck, most of them are based on fundamentals, good habits and experience.

The result of good habits

Miles is the co-founder of Pure Investments. In May 2017, he began with $1,000, which he saved by saving 10% of his salary every month. Today, his income is $46,000; In other words, he increased his portfolio by 46 times in less than one year.

Similarly, after starting Pure Investments in September 2017, Miles accepted his first community member, who was nicknamed “SP” on the Discord channel. When SP started trading, it invested $40,000. By January 2018, his investment income had exceeded $1 million.

Although the cryptocurrency market price is extremely volatile, and all investors are affected by price fluctuations, including Miles, SP, me and you, good habits will help reduce losses and maximize profits.

9 cryptocurrency trading rules

Please note that these are not specific investment suggestions. Please bear your own investment risk!

  1. Only invest in what you can lose. During the price collapse in January 2018, many amateur investors were cleaned out of the market. Their funny performance is that the ground is full of broken monitors, the balance in laptops and bank accounts has shrunk significantly. Although sequential trading steps and methods are important, there is no doubt that the principles behind these trading steps and methods are more important. Once your funds are converted into cryptocurrency, by default that the money has been lost. The market can never guarantee that you can take it back. The loss is not only from the decline of the market; External factors such as hackers, loopholes and government regulation may mean that you will never see any part of the funds again. If you can’t afford to lose when investing, you need to step back and reassess your current financial situation, because what you will do will be accompanied by despair. This includes: using credit cards, mortgages, applying for loans, selling everything and traveling around the world (which sounds fascinating).

  2. Always pay attention to Bitcoin. Most Altcoins (every cryptocurrency except Bitcoin) are more closely related to Bitcoin than Asian currencies and the US dollar during the Asian financial crisis. If the price of Bitcoin rises sharply, people will try to exit the Altcoins to gain BTC profits, and the price of Altcoins will decrease; On the contrary, if the price of Bitcoin decreases sharply, the price of Altcoins will also decrease, because people withdraw from Altcoins to exchange for fiat currency. When Bitcoin shows a sideways shock or fall, the best period for the growth of Altcoins will appear.

  3. Do not put all the eggs in one basket. Investment needs diversification. Although the amount you invest in digital currency increases the potential to earn more profits, the possibility of losing more will also be magnified. Another way of thinking is to take the cryptocurrency market as a whole; If you think this is just the beginning, the entire market value of cryptocurrency will increase. What is the probability that the market value increase will be driven by one currency rather than many currencies? The best way to safely capture the overall growth of cryptocurrencies is to diversify and benefit from multiple currencies. In addition, the interesting fact is that from January 2016 to January 2018, Corgicoin increased by 60,000 times and Verge increased by 13,000 times. Over the same period, Bitcoin has increased 34 times. Although you will get impressive benefits from Bitcoin, expanding to other currencies may give you greater benefits.

  4. Don’t be greedy. It is human nature to have losses and gains. When a currency begins to grow, our inner greed follows. If a currency increases by 30%, why not consider profits? Even if the target is set at 40% or 50%, if a currency fails to meet the target, you should get some profits from it at least. If you wait too long or try to exit at a higher point, you may lose the profits you have earned, or even turn profits into losses. If you want to continue to gain potential profits, form the habit of stopping profits and looking for re-entering the market.

  5. Don’t invest blindly. Some people in the world will sell a pair of glasses to a blind person without limit, as long as the business can bring him profits. Such people also exist in the cryptocurrency market, and they will take every opportunity to deceive investors with little knowledge. They will tell you what to buy or claim that some currencies will decrease, just to raise or depress the price so that they can cash out. Due to the highly speculative nature of today’s cryptocurrency market, an excellent investor must always conduct his own research in order to take full responsibility or potential investment results. Even if the information comes from the best investors, it is only a good information at best, but it is by no means a commitment, so you can still incur losses.

  6. Don’t worry about profits and losses. This is where people often lose money. A typical case of manipulation in December, the joint speculation of the two media, the announcement of the Chicago Mercantile Exchange and the Chicago Options Exchange, and a large number of news pushed the price of Bitcoin from $10,000 to $20,000. Since then, Bitcoin has fallen to a low of $9,000, and is currently about $11,000. It’s easy to go back and say, “If I only waited for one month, I could buy it at the price of $9,000 instead of waiting for Bitcoin to reach $20,000 again, so that I could make both ends meet.” But the reality is that the decision of insatiable greed and blind investment will indeed make Bitcoin reach a record high, but it is also a terrible decision to stand firmly at a high position. In any speculative market, if an investment target blowouts rapidly, it will certainly correct itself - it is only a matter of time. The correction mechanism after excessive speculation almost always follows. Although trying to jump on a train at full speed sounds as exciting as a James Bond movie, I believe most of us agree that if we wait for it at the next station, we may retain some limbs.

  7. Classify your investment and try to look at the long line chart. During your research, you will eventually find that you have encountered several different types of currencies. For some of them, you believe they have excellent teams, good vision, amazing publicity and successful implementation records. That’s great! Put them into the medium or long-term vision, and then marinate them into delicious bacon. When the price falls, do not consider selling, because anything in the medium-term or long-term portfolio should remain unaffected by the price for a period of time. BNB is a good example of currency that Miles considers a long-term holding. Recently, it has declined by 20% temporarily. In our community, we have witnessed some panic selling to protect profits. A week later, it rose nearly three times in a period of time.

  8. Always learn from mistakes. Never wait for a position to close when you are close to liquidation. Always evaluate the market situation and try to find out why it happened. Take this assessment as the basis for your next action, and if you continue to do so, you will know more than before and make more informed decisions. We are all amateurs, and we will lose money in the whole trading process. In his first month of trading, Miles lost from $1,000 to $300. Most of these losses were caused by selling through fear. No one is perfect, no one will win every transaction. Don’t let losses discourage you, because the reality is that if you choose to learn from losses, they will make you a better trader.

  9. If you are conducting any trading activities, please set a stop loss. For any currency that is not in your medium or long-term holding, always set a stop loss. This is important for several reasons - the most obvious is to reduce your losses. But more importantly, you force yourself to decide the acceptable loss point, and because you now have a reference point, you can measure the effectiveness of your reservation or adjustment of future transactions. Sometimes, during the decline of the market, Altcoins may plummet and can be used to re-enter at a lower price through automatic selling.

  10. One extra note: always check the currency code. Code symbols are not universal and may vary from exchange to exchange in rare cases. However, these small probability situations may still turn around and bite you. For example, Bitcoin cash is traded as BCH in some exchanges and BCC in other exchanges. BCC, also the code of BitConnect, recently went bankrupt as a Ponzi scheme. If you think you are buying Bitcoin cash and end up buying BitConnect, you will lose a lot of money.

You don’t have to do it alone

Although these rules are by no means the only courses you need, they are definitely a good starting point. But sometimes things are easier said than done. For example, you still have the iron will to resist the sell button when you watch the value of your portfolio plummet. One of the best solutions I have found is to join a like-minded cryptocurrency investor community. Educated digital currency traders and community members will fully support your work and will be with you during the tough times.