What is the 3-5-7 rule in trading?

The 3-5-7 rule is a fundamental risk management guideline, not a guaranteed profit strategy. It dictates acceptable exposure levels across different facets of your trading portfolio. It’s a simplified heuristic, best suited for beginners establishing a robust risk framework, not a rigid rule for seasoned traders.

3% Per Trade: This limits individual trade risk. Exceeding this can lead to rapid account erosion from a single losing trade. Consider factors beyond simple percentage; account size, volatility of the asset, and your personal risk tolerance all influence the appropriate percentage.

5% Per Market: Diversification is key. Concentrating too heavily in one market exposes you to systemic risk. This limit prevents catastrophic losses if that specific market experiences a downturn. Note that “market” can refer to a sector, index, or even a specific asset class.

7% Total Portfolio Risk: This is the maximum total risk you should assume across all your open positions. This is a crucial aggregate limit, ensuring that even a combination of unfavorable trades doesn’t wipe out your capital. It’s the sum of all your individual trade risks.

Beyond the Basics: The 3-5-7 rule offers a starting point. Sophisticated traders often employ more nuanced approaches. Consider these points:

Dynamic Adjustment: The percentages aren’t immutable. Market volatility and your trading strategy may warrant adjustments.
Position Sizing Strategies: Explore Kelly Criterion or fractional position sizing for more advanced risk management.
Stop-Loss Orders: The 3-5-7 rule complements, but doesn’t replace, the use of stop-loss orders to automatically limit losses on individual trades.
Risk Tolerance Assessment: Regularly reassess your personal risk tolerance. What was acceptable when you had a smaller account may not be appropriate as your capital grows.

Practical Example: A $10,000 account following the 3-5-7 rule would:

Limit individual trade risk to $300 (3%).
Limit exposure to any one market to $500 (5%).
Maintain a total maximum risk of $700 (7%).

Caveat: While the 3-5-7 rule aids in risk mitigation, it doesn’t guarantee profits. Thorough research, robust trading strategies, and continuous learning remain crucial for long-term success.

What is the 1 rule in trading?

The 1% rule isn’t just a rule; it’s a fundamental cornerstone of risk management, especially crucial in the high-stakes world of esports betting or trading in-game assets. This principle dictates that no single trade should jeopardize more than 1% of your total capital. Think of it as a disciplined approach to preserving your long-term viability. Violating this rule can lead to rapid account depletion, effectively ending your competitive journey before it even truly begins. Consistent adherence minimizes the impact of inevitable losing trades, allowing for recovery and continued participation in the market. Furthermore, it fosters a mindset of patience and calculated risk-taking, rather than impulsive, emotionally driven decisions – key traits for sustained success in competitive trading. The 1% rule isn’t a guarantee of profit, but it dramatically increases the probability of long-term survival and profitability by mitigating the devastating effects of drawdowns. Consider it a form of built-in resilience against volatility and unexpected market shifts; a crucial buffer against the inherently unpredictable nature of competitive trading environments.

Implementing the 1% rule requires precise position sizing calculations, directly tying trade size to account value. For instance, a $10,000 account means a maximum risk of $100 per trade. This calculation should factor in stop-loss orders, ensuring that losses are capped at that predetermined 1%. Regularly review and adjust your position sizing as your account grows to maintain the 1% risk parameter. This methodical approach, honed through experience, translates to sustainable participation in the volatile world of esports trading or in-game asset speculation.

While the 1% rule is a powerful tool, it shouldn’t be considered in isolation. It’s most effective when coupled with other risk management strategies, including thorough market analysis, diversification across various assets or betting markets, and strict adherence to a well-defined trading plan. Ultimately, the 1% rule is about survival and longevity in a high-risk environment. It’s not just about winning individual trades; it’s about consistently participating in the game, learning from both victories and defeats, and steadily growing your capital over time.

What is the hardest thing in trading?

The most brutal truth in trading isn’t mastering complex indicators or algorithms; it’s emotional discipline. Specifically, letting your winners run and taking profits at pre-determined levels. The market’s inherent uncertainty means you’ll always grapple with doubt – will this trade reach my target? Will I miss a bigger move? This is amplified for beginners lacking robust backtested strategies and experience-driven intuition. They often overthink, second-guessing every pip.

Experienced traders understand this doubt is normal, even expected. They’ve seen countless scenarios, learned to manage their risk, and developed a process for managing their emotional response. This process isn’t about eliminating doubt; it’s about channeling it constructively. It involves:

1. Rigorous Risk Management: Position sizing isn’t just about limiting losses; it’s about managing the emotional impact of a drawdown. Smaller positions reduce the sting of losing trades and free up mental space to focus on the next opportunity.

2. Defined Entry and Exit Strategies: Backtested strategies and clearly defined profit targets and stop-loss orders remove emotional decision-making from the equation. You’re executing a plan, not reacting to market noise.

3. Understanding Market Context: Knowing why you entered a trade and the conditions that might invalidate your thesis helps you stay disciplined. A deep understanding of price action, support and resistance, and market sentiment gives you the confidence to let winners run, even amidst temporary setbacks.

4. Journaling and Self-Reflection: Tracking trades, analyzing mistakes, and acknowledging successes are crucial for growth. This iterative process builds experience and strengthens your emotional fortitude.

Ultimately, mastering the hardest aspect of trading isn’t about eliminating doubt; it’s about transforming doubt from a paralyzing force into a catalyst for discipline and refinement. The key lies in building a robust framework—a combination of proven strategies, stringent risk management, and a consistent process for self-improvement—that allows you to ride the waves of uncertainty and reap the rewards.

What is the 50% rule in trading?

The 50% rule? Think of it like a pro gamer’s “mini-recalibration” during a match. After a huge win streak (a 20% price surge in stock terms), they might take a small breather, maybe lose a round (a 10% correction) before dominating again. It’s a natural pullback – a price correction that typically sees the asset retrace 50% to 67% of its previous move.

Key takeaway: It’s not a guarantee, more like a statistical tendency. It’s about identifying a likely pause in a trend, not a definitive reversal.

Predicting the Pause: The 50% rule helps predict potential entry points for savvy traders. Instead of chasing a skyrocketing stock, you wait for this retracement and potentially capitalize on a lower price. It’s like waiting for a slight lull in your opponent’s attack before countering.
Risk Management: Understanding potential retracements allows for better position sizing and stop-loss placement. You’re not just blindly betting on the trend; you’re anticipating potential dips and preparing for them.
Not an Absolute Truth: Remember, the market’s a wild beast! Sometimes the correction exceeds the predicted range. Other times, the rally continues without a significant pullback. It’s crucial to use this principle with other indicators and analysis for a more holistic approach.

Example: Imagine a pro gamer’s comeback. After losing a map, they might analyze their mistakes and adjust their strategy (similar to adjusting your trading strategy based on market conditions). The subsequent win streak (price increase) might then see a small drop (price correction), before they solidify their victory (the trend resumes).

Upward Trend: +20%
Predicted Correction: 10% – 13% (50% – 67% of the initial increase)
Resumption of Upward Trend: This is the opportunity for savvy traders.

What is the 90% rule in trading?

The infamous 90/90 rule in trading isn’t just a statistic; it’s a rite of passage, a harsh initiation into the unforgiving world of market forces. It postulates that a staggering 90% of new traders will lose 90% of their starting capital within their first 90 days. This isn’t a prediction of doom, but a reflection of several key factors: a lack of proper risk management (overleveraging being a prime culprit), emotional trading driven by fear and greed, the allure of get-rich-quick schemes, and insufficient understanding of market mechanics and trading psychology. The sheer volume of information, conflicting strategies, and the relentless pressure of real-time trading overwhelm many newcomers.

This high failure rate underscores the critical need for thorough education and preparation *before* risking real capital. Backtesting strategies on historical data, paper trading to simulate real market conditions, and mastering risk management techniques like position sizing and stop-loss orders are crucial. Understanding various asset classes, market dynamics (supply and demand, technical analysis, fundamental analysis), and the psychological aspects of trading are equally vital. It’s not just about charts and indicators; it’s about developing a robust trading plan, adhering to it rigorously, and continuously learning from both successes and, more importantly, failures. The 90/90 rule is a stark warning, but it’s also a call to action – to equip oneself with knowledge, discipline, and patience before engaging in the high-stakes game of trading.

Remember, successful trading is a marathon, not a sprint. Consistent profitability is built on a foundation of meticulous planning, ongoing learning, and unwavering discipline. The 90/90 rule highlights the importance of mitigating risk and approaching trading with a long-term perspective. It’s a testament to the need for rigorous self-education, practical experience, and the unwavering commitment to continuous improvement.

What’s the quickest trade to learn?

Yo, what’s the fastest trade to learn? Looking for a quick path to a solid paycheck? Here’s the lowdown, based on my years in the game:

HVAC Technician: Huge demand, always will be. Learn fast, make good money. But it’s physically demanding, and you’ll be dealing with cramped spaces and sometimes nasty situations. Think about that before jumping in.

Plumber: Classic trade, always needed. Good money, but it can be messy, physically hard, and involves a lot of time on your knees. Consider the long-term physical toll.

Electrician: Similar to plumbing – high demand, good pay, but physically demanding and potentially dangerous. Safety training is key here.

Truck Driver: Relatively quick to get started, but long hours and time away from home are the norm. Think about that lifestyle before you commit. Different license classes have different training requirements.

Welder: Good paying and in demand, but it requires precision and a steady hand. Exposure to fumes and intense heat are also factors.

Emergency Medical Technician (EMT): High-pressure, but incredibly rewarding if you’re the helping type. Requires strong nerves and quick thinking. The emotional toll can be significant.

Medical Assistant: Faster to learn than many others on this list. Good for those with an interest in healthcare, but you’ll be working long hours and potentially dealing with stressful situations. Strong communication skills are a must.

Dental Assistant: Similar to medical assistant – quick to learn, good pay, but demanding and requires patience and a steady hand. Exposure to bloodborne pathogens needs to be considered.

Important Note: “Quickest” doesn’t mean “easiest.” All these trades require dedication, hard work, and ongoing learning. Research the specific requirements and training programs in your area before making a decision. Look beyond the initial training and think about the career path and long-term potential.

What is the best strategy to trade?

There’s no single “best” trading strategy; optimal approaches vary significantly depending on market conditions, risk tolerance, and individual skill sets. Think of it like choosing champions in a MOBA – some excel in aggressive pushes (trend trading), others in defensive strategies (range trading). A successful trader masters multiple strategies and adapts their approach like a pro-gamer switching up their playstyle.

Trend trading capitalizes on established price movements. It’s analogous to focusing on a team that’s clearly dominating the game; you ride their momentum. However, identifying a true trend and avoiding false breakouts requires keen observation and experience, much like predicting a team’s performance based on their recent history and composition.

Range trading involves profiting from price fluctuations within a defined range. This strategy is like controlling a lane; you’re focused on small, consistent gains rather than high-risk, high-reward plays. Mastering this requires understanding support and resistance levels, a skill honed through meticulous analysis, similar to map awareness in a competitive game.

Breakout trading bets on significant price movements after a period of consolidation. This is a high-risk, high-reward strategy, akin to a surprise flanking maneuver; a well-executed breakout can yield massive profits, but poor timing can lead to significant losses.

Reversal trading targets price movements that reverse established trends. This requires a deep understanding of market psychology and indicators; it’s a complex strategy, comparable to reading the enemy team’s strategies and exploiting their weaknesses. Accurate prediction is crucial.

Gap trading aims to exploit price gaps, often occurring after news events or overnight. Think of it as capitalizing on unexpected events during a tournament; quick reaction and accurate analysis are paramount.

Pairs trading exploits relative price movements between two correlated assets. This is a more sophisticated strategy, similar to synergizing champions in a team composition; understanding the relationship between assets is essential.

Arbitrage focuses on exploiting price discrepancies between different markets for the same asset. This is a low-risk, low-reward strategy requiring precise execution and market knowledge. It’s the equivalent of finding exploits in a game that are quickly patched by developers – requiring alertness and immediate action.

Momentum trading involves capitalizing on short-term price trends. This requires rapid analysis and decision-making, much like reacting quickly to an enemy’s sudden attack.

Key takeaway: Diversification of trading strategies, risk management, and continuous learning are crucial for long-term success – just like a pro-gamer constantly improving their skills and adapting to meta changes.
Risk Management: Always define your risk tolerance and stick to it.
Backtesting: Test your strategies using historical data before deploying them with real capital.
Adaptive Learning: Continuously analyze your performance, adjust your strategy, and learn from your mistakes.

Can I be a millionaire with trading?

Yeah, hitting millionaire status through trading? Totally doable. Forget the lottery mentality; it’s not about luck. Think of the stock market like a high-level esports tournament – consistent skill, strategy, and dedication are key. It’s a marathon, not a sprint. Building wealth takes time, discipline, and a deep understanding of the game. Fundamental analysis – that’s your scouting reports and team compositions. Understanding a company’s financials, its market position, and long-term prospects is crucial. Technical analysis is like studying your opponent’s playstyle; chart patterns, indicators, and volume analysis can help predict short-term price movements. And like any pro gamer, you’ll need to manage your risk. Diversification is your backup team; spreading your investments across different assets minimizes potential losses. Don’t chase quick wins; those are like noob traps. Long-term, value-driven investing is your ultimate strategy. The time it takes to reach that million-dollar mark will depend on your starting capital, your skills, and your risk tolerance—just like the time it takes to reach the top rank in a competitive game.

Compounding is your ultimate power-up. Consistent returns, however small, accumulate exponentially over time. Think of it as leveling up—each win builds upon the previous one. Mastering these aspects is more important than innate talent or a huge starting bankroll. It’s about consistent practice and strategic execution.

What is the hardest trade to do?

The “hardest trade” question is a noob trap. It’s like asking what the hardest game to pro in is – the answer’s always “the one you suck at”. Seriously though, electrician and plumbing consistently rank high in difficulty.

Why? It’s not just about memorizing button combos; it’s about spatial reasoning, problem-solving under pressure, and mastering complex systems. Electricians deal with potentially lethal voltages; one wrong move and you’re looking at a game over. Plumbers, similarly, face messy, unpredictable situations, requiring quick thinking and precise execution. Think of it as a real-world RTS – managing resources (water pressure, wiring), troubleshooting unexpected bugs (leaks, shorts), and constantly adapting to new challenges (old houses, weird blueprints).

But there’s more to it than just raw skill.

Mathematical Proficiency: Both trades require strong math skills – Ohm’s Law for electricians, pipe sizing and flow calculations for plumbers. This isn’t just basic arithmetic; it’s applied mathematics under stress.
Physical Demands: Let’s be real; this ain’t esports. Hours on your feet, lifting heavy materials, working in awkward positions – it’s a serious endurance test. Stamina is your ultimate DPS buff.
Safety Protocols: Mastering safety procedures is paramount. It’s not just about avoiding death; it’s about minimizing downtime and preventing costly mistakes. Think of it as learning all the advanced techniques to avoid getting instantly obliterated.

Ultimately, the “hardest” trade boils down to individual strengths and weaknesses. A natural problem-solver might find electrical work easier than someone with exceptional hand-eye coordination, who might thrive in plumbing. It’s all about finding your meta and grinding to master it. Ignoring the grind will make *any* trade feel impossible.

Learning Curve: Apprenticeship programs for both trades are notoriously demanding. Expect long hours, rigorous training, and constant evaluation – essentially a high-stakes boot camp.
Continuous Learning: Technology is constantly evolving. Staying updated on new codes, materials, and techniques is crucial for longevity in the field. It’s a constant upgrade cycle.

How can I trade more efficiently?

Level up your trading game with these killer risk management tips. It’s not just about making profits, it’s about preserving your capital.

8. Master Your Risk:

Set Hard Stop-Losses: Don’t wing it. Define your maximum acceptable loss before entering any trade. This isn’t about being afraid to lose; it’s about controlling the damage. Think of it as your emergency parachute. Use stop-loss orders – your broker’s built-in safety net.
Know Your Total Exposure: Track all open positions meticulously. Calculate your overall risk across all trades. Don’t get caught out by unexpected market movements; understand your overall vulnerability. Tools like portfolio trackers are invaluable here.
Avoid Averaging Down: This is a trap! Doubling down on losing trades rarely works. You’re essentially throwing good money after bad, increasing your risk exponentially. Cut your losses and learn from the mistake.
Daily & Weekly Limits: Set realistic financial loss limits for each trading day and week. Sticking to these limits is crucial for emotional discipline and long-term success. This prevents those impulsive, emotionally-driven trades that can wipe out weeks of profit.
Stop-Loss Orders are Non-Negotiable: Seriously, use them on every trade. They’re your automated safety net, protecting you from catastrophic losses when the market moves against you. Don’t let emotion override this crucial risk management tool.

Remember, consistent profitability comes from a combination of skill and smart risk management. Protecting your capital is just as important (if not more so) than chasing gains.

What is the Triple 95 strategy?

Yo, what’s up, gamers? Triple 95? That’s the ultimate HIV endgame boss fight. Think of it as a three-stage raid to wipe out this virus. It’s all about achieving three 95% milestones:

95% Diagnosis: First, we gotta get 95% of peeps living with HIV to actually *know* they have it. Early detection is key, folks. It’s like discovering that hidden boss room before you even start the main quest. Regular testing is your secret weapon here.
95% Treatment: Next, of that 95% who know their status, 95% need to be on treatment. That’s where the real grinding begins. Think of antiretroviral therapy (ART) as your best-in-slot gear. It drastically reduces the viral load, making transmission way less likely. It’s about consistent gameplay, folks; taking your meds daily is crucial.
95% Viral Suppression: Finally, out of the 95% on treatment, 95% need to achieve viral suppression. This is when the virus is suppressed to undetectable levels. Think of it as achieving max level in your character build. When the virus is undetectable, it’s basically untransmittable, meaning you can’t spread HIV to others. This is the ultimate victory condition – a raid clear.

Basically, it’s a chain reaction. Hitting all three 95% targets means we’re significantly closer to ending the HIV epidemic. It’s a massive undertaking, but with proper strategies and consistent effort, we can totally win this fight.

What is the 30 60 90 strategy?

So, you wanna know about the 30-60-90 day plan? It’s basically your secret weapon for crushing it in a new job. Think of it as a hyper-focused roadmap, not just some generic to-do list.

The core idea? You’re laying out SMART goals – Specific, Measurable, Achievable, Relevant, and Time-bound – across three key phases:

First 30 days: This is all about learning. Observe, absorb, and build relationships. Identify quick wins – low-hanging fruit that demonstrates your value early. Don’t try to reinvent the wheel; understand the existing systems and processes.

Days 31-60: Now you’re applying what you’ve learned. Tackle more complex tasks, start contributing meaningfully to projects, and identify areas for improvement. This is where you start showing your initiative and problem-solving skills. Proactively seek feedback – it’s gold.

Days 61-90: This phase is all about strategic impact. You’re actively driving projects, contributing to team goals, and identifying longer-term opportunities. You’ve transitioned from learner to contributor. Start thinking about the next quarter and beyond – where do *you* fit into the bigger picture?

Pro-tip: Don’t just focus on your individual goals. Align your plan with your team’s and the company’s overall objectives. This shows you’re a team player and understand the bigger picture. Think about how *your* success contributes to *their* success.

Another crucial element: Document everything. Keep track of your progress, challenges, and key learnings. This creates a valuable reference point for future performance reviews and career development. This is your personal success story, so make it count.

One last thing: Be flexible. Your plan is a guide, not a rigid contract. Be prepared to adapt as priorities shift and new information emerges. The best 30-60-90 plans are living documents, constantly evolving.

What is the 90-90-90 strategy?

The UNAIDS 90-90-90 strategy was a global public health initiative aiming to end the HIV/AIDS epidemic. It set ambitious targets to dramatically improve HIV care and treatment by 2025.

The core goals were threefold:

90% of all people living with HIV will know their HIV status.
90% of all people with diagnosed HIV infection will receive sustained antiretroviral therapy (ART).
90% of all people receiving ART will have viral suppression.

Achieving these targets was crucial because viral suppression significantly reduces the risk of HIV transmission. This “treatment as prevention” approach is a cornerstone of modern HIV/AIDS management.

While the 2025 deadline wasn’t fully met globally, significant progress was made. Factors influencing success varied widely by region and included:

Increased access to HIV testing.
Improved access to ART medications.
Effective public health campaigns raising awareness about HIV/AIDS.
Community engagement and support programs.
Stronger health systems and infrastructure.

The 90-90-90 targets have been succeeded by the 95-95-95 targets, which build upon the achievements and address the remaining challenges in ending the HIV epidemic. This iterative approach highlights the ongoing need for global collaboration and innovative strategies.

Is trading really profitable?

Let’s be real: is day trading profitable? The short answer is a nuanced “maybe.” While it can be lucrative, the reality is brutally harsh. The vast majority—we’re talking 80-97%—lose money. Academic studies and industry data consistently show this dismal success rate. Why? It’s incredibly difficult.

Why is day trading so tough?

High emotional toll: The pressure of making quick decisions with real money is immense. Fear and greed heavily influence choices, often leading to poor outcomes.
Steep learning curve: Mastering technical analysis, chart patterns, risk management, and market psychology takes years of dedicated study and practice.
Hidden costs: Brokerage fees, slippage, and commissions eat into profits, especially with frequent trades.
Market unpredictability: News events, global factors, and unforeseen circumstances can dramatically impact even the most well-researched trades.
Competition: You’re competing against sophisticated algorithms and experienced traders with vast resources.

What about those who *do* succeed?

They possess exceptional discipline and risk management skills.
They’ve dedicated years to learning and refining their strategies.
They’ve likely suffered significant losses before finding success.
They continuously adapt to changing market conditions.
They often use advanced tools and technologies.

The bottom line: Day trading is not a get-rich-quick scheme. It requires immense skill, dedication, and a high tolerance for risk. The odds are heavily stacked against you, so approach it with realistic expectations and a thorough understanding of the challenges involved. Consider paper trading extensively before risking real capital.

What is the 80 20 rule in trading?

The 80/20 rule in trading, also known as the Pareto Principle, isn’t a rigid formula, but a powerful observation. It suggests that a disproportionate amount of your portfolio’s performance stems from a small percentage of your trades or holdings.

The Good News: 20% of your winning trades likely generate 80% of your profits. This highlights the importance of identifying and focusing on your best performing assets or strategies. Think about it: meticulous research, proper risk management, and a keen understanding of market trends are key to identifying those top 20%.

Identify your winners: Keep detailed records of your trades. Analyze which strategies and assets consistently outperform.
Focus your resources: Don’t spread yourself too thin. Concentrate your efforts and capital on your proven winners.
Refine your winning strategies: Understand *why* those 20% succeeded. What market conditions favored them? Can you replicate that success?

The Bad News: Conversely, a small percentage of your trades can wipe out a significant chunk of your capital. This emphasizes the critical role of risk management.

Strict stop-loss orders: Protect your capital from devastating losses. Don’t hesitate to cut your losses short.
Diversification (but smart diversification): Don’t over-diversify to the point of diluting your winners. Diversify strategically, focusing on reducing risk in your less profitable positions.
Position sizing: Carefully manage your position sizes, particularly in higher-risk trades. Never risk more than you can afford to lose.

In essence: The 80/20 rule pushes you to analyze your trading performance rigorously, identifying and capitalizing on your strengths while diligently mitigating your weaknesses. It’s about maximizing the positive and minimizing the negative, not about blindly following a percentage.

What is the 5 3 1 rule in trading?

The 5-3-1 Forex strategy? Veteran pro here. It’s about ruthless efficiency, not some mystical unicorn. Five pairs – you pick the liquid majors, the ones with the clearest price action. No messing about with exotic pairs or obscure cross rates. Three strategies only – think simple: scalping, day trading, or swing trading. Master one, then maybe two, but never chase every fleeting trend. One trading time – discipline is king. Are you a morning person? A night owl? Choose one consistent session and stick to it. No hopping between charts all day, that’s amateur hour. This isn’t about hitting every single trade; it’s about consistent, calculated execution. The 5-3-1 framework forces focus. It’s about minimizing market noise and maximizing your understanding of the limited set you are trading. Backtest rigorously. Develop a clear risk management plan. 5-3-1 is not a holy grail, it’s a framework. Its success hinges on your skill and dedication.

Forget over-optimization; keep it lean. Remember, this is about sustainable profits, not chasing fleeting highs. A key element often overlooked is rigorous journaling and post-trade analysis. Every trade, regardless of outcome, provides a learning opportunity. Continuous improvement is paramount.

Think of it like this: Five weapons in your arsenal, three proven combat techniques, and one battlefield. Master that, and you’ll consistently outperform the majority.

What is the 70 30 trading strategy?

Yo, what’s up, legends? The 70/30 RSI strategy? It’s a classic, but you gotta know how to *really* wield it. Think of RSI as your market’s emotional rollercoaster.

Above 70? Overbought territory. That means the price has been rocketing, and everyone’s hopped on the hype train. It’s screaming “sell” – or at least, “prepare for a dip.”

Don’t just blindly sell at 70 though. Look for confirmation! See if the price is forming a bearish candlestick pattern, like a hammer or a shooting star – that’s your extra breadcrumb trail.
Consider the context – a strong uptrend might ignore the 70 level for a while. Don’t get caught shorting a rocket.
Think about using trailing stops – that’s your safety net if the rocket *does* keep going.

Below 30? Oversold city. This time, the market’s totally freaking out, and everyone’s panic-selling. This is your “buy” signal – or at least, a low-risk entry opportunity.

Again, confirmation is key. Look for bullish candlestick patterns (like a bullish engulfing candle) for more confidence.
Check volume! High volume on oversold conditions strengthens the signal; low volume might just be a minor blip.
Don’t expect a magical bounce; it might consolidate or retrace before really breaking out. Patience, young padawan.

Pro-tip: RSI isn’t a holy grail. Combine it with other indicators like moving averages or support/resistance levels for stronger signals. Avoid emotional trading – stick to your strategy and manage your risk like a boss. Let’s grind!