As a newbie, your portfolio will wholly consist of tokens from your favorite influencers.
Given the anticipated bull market, likely your portfolio will be bullish. And this is when you utterly will be rekt. Because your influencer will dump on you.
If not, you'll research and invest in the worst-performing protocols.
Why so?
You won't be smart at DD, short for due diligence like you've been taught, because, it's a long-term game of experience. If you manage to pick a wining play, good job.
But FYI, the market has always followed a pattern:
1- Coin manipulations; pump and dump schemes
2- Trend effects - coins that go up tend to keep going up
3- Reversion to fair value, when price-insensitive traders strike
4- Narrative plays - the hot new coin everyone's talking about
Note, you'll likely always missed it, so stick with a plan that I will lay afterwards.
Before that, from last year, you've seen all these plays. And always felt like you missed, which is why you should set clear trackable goals right now - the plan.
That's how to win the game, so you won't be left pondering.
Setting Clear Trackable Goals will help you avoid market manipulation, where you'll likely catch some good plays not overtly hyped by your influencers. Consider dynexcoin.org a global network of decentralized supercomputing, an example.
DYNEX is a project with incredible utility and a clear defined mission leading among DLT projects for economics of scale.
Whatever, considering you've made your DD, your entry and exit price levels should be tracked, if not, you won't be profitable. Formulate an Excel sheet to track your daily strategies.
Keep in mind, the goal of the game is winning.
You'll have to win by automating your trades, don't think you'll have to manually monitor the market, you'll wake up to a series of red candles and finally exit at a lost.
Notice automating your trades, spot buy and sell on your brokerage exchange with limit orders should save you time and energy. Tradingview price alert is a game changer for price targets, this will wake you up like your usual alarm clock ⏰
Now, so if you want to set clear and trackable goals in crypto trading, here's what you can do:
1. Start by setting an objective for yourself. Ask your self what you want to achieve from trading. Do you want to make a certain amount of money? Whatever, be specific and don't want to beat the market.
2. Breakdown your goal in to smaller, achievable milestones. Here is why, if you want to make a certain amount of money, set specific targets for each month, quarter or year. Make sure to measure them, so you can track your progress.
3. Develop a trading/investment plan. This will consider risk tolerance, entry and exit strategies and types of cryptocurrencies you want to trade. Stick to your plan, and don't let emotions derail your plan, emotions are for the weak.
4. Make a trading journal. Write down all your trades, including reasons behind your decisions, outcomes, and the types of lessons learned. This will help you to analyze your performance and improvement over time.
5. Constantly educate yourself. The crypto market is volatile and you need to stay up-to-date with latest news and trends. You have to follow reputable sources, read books, and join communities to soak up knowledge as you can. As you ma have seen, the AI trend outperformed the market last year, you have the DePIN trend this year.m, so buckle up and learn.
6. Finally, track your progress. Regularly review your performance against your milestone, are you meeting your target? If not, figure out what went wrong and make adjustments accordingly.
With this plan, you'll escape being exit liquidity when trading crypto as you master these following metrics to play with.
❍ Invest in assets with high liquidity
❍ Pay attention to market depth
❍ Be a market participant
❍ Monitor market infrastructure and,
❍ Avoid dormant altcoins.
As well, research projects with less hype having upside potential, projects with a team having long-term track of the market before investing, if you're highly technical; set clear exit points, and use trading bots and algorithms to execute trades based on predefined rules.
Remember, trading/investing in crypto comes with substantial risks, losing partly or all of your portfolio is part of the game. But with clear goals, discipline and a good mindset, might just let you to make juicy profits.
Good luck to your crypto endeavor 🌟
Cheers ✍️🙏
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