WHAT YOU NEED TO KNOW BEFORE YOU START INVESTING:
1) Do not use your emergency fund for trading/investing.
- As we know, higher risk, higher return. No guarantee profits.
- Never all-in in a trade.
2) Do not invest in something that you do not know.
- Investing is not gambling.
- Knowing about the product that you’re investing will give you more confident on making choice on when to take profit or when to cut loss.
3) Learn how to do technical analysis. (IMPORTANT)
- Start with basics, learn when to construct support lines and resistance lines.
- Make use of trend line and ray (for triangular method) in a suitable graph behaviour/movement.
- When your strategy is working, do not change it. Other strategies might not be working out for you.
- Trial and error methods. Do not give up, keep practicing and you will find a suitable strategy for yourself at tradingview for free.
4) Do not rush.
- Many beginners do not know when and where to start investing or what is the best price to start buying the stocks/cryptocurrencies.
- Check your support and resistance lines, they will be your target buy price and target sell price.
5) Do not catch the falling knife.
- When the stocks are all falling red (waterfall etc.), do not go all-in at a particular price. Fractional buy will be the most suitable strategy when dumping occurs.
- Follow @whale_alert on Twitter, when you saw people transfer their cryptocurrencies to an exchange platform, it means that dumping will occurs at any moment from that time whenever @whale_alert posted the transaction details.
6) Be patient. (I assume that you’ve already done your own research)
- If you are a long-term investor, you do not need to worry about catching the falling knife, since you are confident that the price will bounce back or even higher at any time soon.
- If you’re a short-term investor, set-up your resistance and support lines. Be ready to lose, be ready to win, be ready for anything.
7) Do not expect for immediate results.
- Still doubting yourself? Open a demo trading account at Etoro and have a test for your strategy for free.
Hope that these advises based on my own experience can help you guys out! =)