Disclaimer not financial advice. Not an expert. Trading Chia or other cryptocurrency is done so at your own risk.
Here are some helpful tips and common mistakes for Chia farmers new to trading. These are a mishmash of the greatest hits online; with my own twist on a few. Hopefully they can help you avoid a few early hard knocks; nothing is more discouraging to a new trader than taking heavy early losses.
Tips for new traders
1-buy low, sell high, only the price of the trade matters. Keep it stupid simple. know the value of your assets.
2- Have a strategy and stay informed of the project. Make a plan and follow that plan. One thing cryptocurrency trading whales have is patience, they capitalize on your trading mistakes which are 100% avoidable. Avoid common FOMO and FUD trends, do your research and stick to your strategy.
3- Manage Risk, keep track of your trades (win or lose) on paper or on a spreadsheet. Learn how to use profit/stop limits to mitigate losses and maximize profits.
4- Don’t panic! Can’t stress this enough! Expert traders are relying on you to make mistakes, stick to your strategy. If all else fails you can always wait for another opportunity. timing is one key investment strategy parameter, often forgotten in a panic.
5- learn how the charts work. We will go more in depth in an upcoming guide but understanding the layout of the exchange UI is a good start. Being able to manipulate them for specific information can go a long way in setting up your positions in the market.
6- learn the trading language. If you are as FOMO as I am for Chia you are already on the way there! Lots of little things to understand and look out for; pay attention to detail.
7- use trading bots- I know it sounds silly to let an algorithm trade for you, but it’s a proven method of making good trades without panicking or emotions of any kind. Sometimes hitting the order button is the hardest part. Bots take all this out of your hands. We will also go over bots in detail in a future guide.
8- Understand the tax laws in your country. Each is different and the tax man doesnt screw around.
Common mistakes novice traders can make
1- Don’t go all in to start! Bigger trades bigger rewards; however it also means bigger losses if you happen to make a mistake.
Sell and buy in smaller amounts to mitigate the risk involved.
2- don’t forget your passwords! KYC is also an added layer of account insurance
3- crypto trading is not easy money. There is nothing easy about making money no matter what anyone says.
4- you are the expert of your own assets. Influence is everywhere online; don’t fall for 25x growth youtube clickbait…even if that person has millions of followers (there’s a specific youtuber i will not name who does this all the time)
5- avoid “pump” scams (groups), some of these groups may look legit but they are basically ponzi schemes. 500 users or 40000 users in the group doesn’t matter, it’s a scam. Hopefully discord has taught us this by now!
6- panicking. If the end of tip# 3 and the entirety of tip #4 did not explain this enough.
Hopefully going forward the Chia markets treat us all well and (hopefully) we can maximize our profits and minimize our losses. These are Just a few tips and I’m sure there are many more. If you have any tips, tricks or anecdotal stories of making mistakes; sound off in the comments below.
If you like this extended guide please stay tuned, as we move into more intermediate trading techniques. We will go over specific exchange functions such as grid trading bots; and continue to figure out how to look at all the charts without pulling out our hair in frustration.
