Trading crypto successfully isn't about getting a bunch of wins. The wins come easy.
It's about keeping your money — not losing it by making those little mistakes that nickel and dime away your victories. Once you instill the following disciplines into your strategy, you'll be much happier when you look in your Metamask.
Take Your Losses. Just TAKE EM
You always have that feeling when your trading strategy has gone wrong. But the very next feeling is "let me hold it just a leeeeetle bit longer to see if I was really right all along/can just get back to breakeven/can get my portfolio net worth to some rando number I have in my head.
Dude. Just take the loss. 5-10% is nothing in crypto. You shouldn't even blink to take this kind of a loss. Waiting, especially when you went in on a trade that you didn't have conviction on, will just end up losing you 50-60%. And it can go from 5% to 50% quickly — in hours. Don't let it. Take the loss. Just take it!
Not Testing an Entire Transaction Chain
You'll find some trades that look good, but they require a few steps to execute. For instance, you have to bridge over to a new chain using a new frontend you've never tried. Or you have to make a swap with a token that's just come out. It behooves you to check every step of the process before taking the trade.
For instance, new tokens can often be quite illiquid. That arbitrage you think you see may just be the slippage in the pool. Or there may be a discrepancy in the token's price because the only bridge to get there is having trouble. Or you may have to use Sushiswap, which just sucks all around (why do founders still put their pools in there?!). Don't let your gains get gobbled up by technical errors. Test the entire chain of transactions before initiating the first one!
Trading on a Hot Tip
I guarantee you — if you see a "hot tip" on a coin from a Twitter engagement farmer, the gains have already been gained. Before you hop in, take a look at the 24 hour chart. Do you see a huge spike up in the chart and market outperformance in the price? More than likely the influencer is an insider who bought and is waiting to dump on you.
The new stuff comes from Discord first, or if you're late-early, Dextools. By the time it gets to social media, the insiders have all made their gains on the initial pump and it's time to enter the building stage [read: the dump the price and fulfill the whitepaper promises stage, which always takes longer than expected]. This is especially true if you see a yield farm with a huge APR/APY that just got opened on an AMM. Don't go in unless you got the token before the pump. It will fall, and that APR/APY will fall as well, and the gains from the farm won't cover your losses.
Real time tips ---> https://twitter.com/alucard0x
