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👇 BEGINNGERS TRADING CHECKLIST 👇
We often see charts like this in crypto.
10x back to the highs. It’s down to you to decide if this is a sleeping giant or a dead project.
Let’s do it together 🤝
Crypto is all about R/R
Analysing Risk vs Reward
Some questions you gotta ask yourself.
If I put $1000 in, what is the chance it goes to 0?
What are the chances I will be in profit after 1 week?
Will I have to sit for a while in a loss waiting for a pump?
Am I buying this through emotion? FOMO etc.
Can I afford to lose this whole investment?
If you can answer all of the above without problems, it’s time to look at Tokenomics.
Some tokenomic questions to ask:
What’s the MCAP? What is total supply? Is total supply in circulation? Is token deflationary? Is contract renounced? Is liquidity locked? What are the taxes?
DISTRIBUTION:
Now we look at distribution, does one wallet hold 10%+ of supply? Are tokens distributed correctly? Are tokens distributed evenly? How many tokens do the team hold? Are they vested? Marketing wallet? How’s it being used?
AUDIT:
VERY IMPORTANT BEFORE INVESTING IN ANYTHING
There are many sites you can use to conduct quick audits on projects, TokenSniffer, WTS bot etc. will show you any problems with the contract within seconds and raise red flags that you may miss on initial inspection.
Everything looks okay here, I will search for the team behind the project.
Are they doxxed? How many team members are there? Do they have any previous projects to go by? Find them.
The team checks out, they are doxxed and have experience among the ranks. Awesome.
EXTRAS TO LOOK AT:
So far, we found the project that looks down and out, we have evaluated the R/R, which seems to be pretty good considering chart is bottomed out. We have established the project is more than likely here to stay, the contract is renounced and liq is securely locked, we feel safe investing. Chances of rug are very low. The team are certified in the space, the tokenomics checked out. The mini audit we conducted passed with flying colours.
We ticked everything off our checklist that we looked for, it's time to invest.
A PLAN:
I don't care who you are, a trade without a real plan is nothing more than a punt. If you don't have targets, what are you even doing here?
Create a plan, set targets and stick to them religiously.
PROTECTING YOURSELF:
As soon as you invest, you need to put Stop Losses in place for protection. A set level where if touched the trade will be stopped and your money will be pulled. Stops should always be set relevant to risk, between 10-20% lower than investment price dependant on how lenient you plan to be with the trade.
Being stopped out of a trade is not great, but can also save you losing 50-80% of investment, and gives you another chance to re invest at a lower price.
DCA - Dollar Cost Averaging
When entering a new position, it's never wise to throw 100% of investment in at one time. Add 30% initially and wait some time to gauge market sentiment, if we see a dip, we add another 30%, now our average cost is lowered. We also still have another 40% to decide the right moment to invest.
DCA is important when investing, as calling the bottom of a move is impossible. So we can target certain levels and use those as entry points if they come.
DCA'ing upwards is not the worst, it's confirmation that the trend is in your favour.
YOU'RE NOW OFFICIALLY A TRADER HARRY LOL
Follow this list, check off points as you go through them and I promise your success rate will increase 🤝
Drop a Follow Like and RT if you like this type of stuff cos it took me ages lol 😂👌
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