Sometimes we get caught up in the FOMO of new coins because their charts look promising or because someone said, "This one's going to explode."
But if you're looking to trade with more clarity and fewer scares, it's key to start with the basics: the story the chart tells you.
🧱 1. That you have at least 6 months of history
If it has just come out, there is not enough information to understand how it behaves.
It's like trying to get to know someone on a first date and making important decisions right away.
The more data the graph has, the more elements you have to make a sound analysis.
📊 2. Have good volume
Volume is like the energy of the market.
When a currency is moving strongly but no one else is participating, any large order can move the price absurdly.
This makes your analysis, your input, and most of all… your confidence unstable.
Make sure there is enough real movement, not just pretty candles.
🧭 3. That it has clear supports and resistances
This allows you to identify key areas to enter, exit, or adjust your strategy.
When there's no structure, there are no reference points… and you end up operating with your stomach rather than analysis.
A chart that has reacted several times in certain areas gives you clear clues as to where to set your levels.
🔁 4. Show a recognizable market structure
You don't need it to be in an uptrend, but you do need to understand what it's doing.
Is it consolidating? Is it changing direction? Is it making higher highs and higher lows?
When behavior is erratic or patternless, it's much harder to define a strategy that respects your risk level.
🎯 And now the important part: what happens if I find an interesting coin but the support is far away?
This is where risk management, and especially leverage adjustment, comes in.
👉 Let's say you want to trade a well-structured coin, but the clearest support is 8% below your entry.
If you maintain the same high leverage you use on short-stop trades, you'll expose yourself to more than necessary.
And if the price touches that support, the loss will be much greater than your account can bear.
🔒 What can you do?
Adjust the leverage to the distance of your stop.
The wider the stop (because support is far away), the lower your leverage should be to keep your risk under control.
Or simply not operate that input.
Because sometimes, the best decision is to wait for another opportunity that better suits your strategy and tolerance level.
When you can breathe easy knowing how much you're risking, your mind makes better decisions and you stay more grounded in the market.
