We all know a friend that FOMO’d to buy the dip, right? Maybe that person is you. We’ve all been there at some level, whether it was the stock market, forex or cryptocurrencies. Inexperienced traders come in with a bad strategy or no strategy. But we need to assess the market to know what the market tells us to do. We can’t be married to a position as a trader. Some traders are only good at taking out a long, and others are better at shorting. So, some traders can do both. Let’s talk about the best cryptocurrency trading strategy.
Here’s an excerpt from our FOMO article, here:
The following formula is needed to grow your crypto wallet:
Initial Investment + Proper Risk Management = Increased Wallet Size
If your initial investment is 100 USD/AUD/YUAN, you should invest with only 3% of your portfolio at a time. You need to properly set a stop-loss, take-profit level and proper leverage.
A stop-loss is a an automatic pricepoint where you will close your position, at a slight loss, but no liquidation. A liquidation is where you will loss 100% of your entire trading position. With our crypto calls, you don’t get liquidated. You get a larger portfolio to trade with.
A take-profit level is an automatic pricepoint where you will close your position at a profit. The reason for setting this, is that you can be asleep and still make a profit. Also, you can safely trade crypto by setting a pricepoint. Most traders lose money because they don’t have a target and don’t get out of their positions. You must always take a profit, or the market will.
Proper risk management means you will only use a small amount of your portfolio and get many wins to build it. It’s not using all of your portfolio. Some advise that you use no more than 25% of your portolio. Most of our signals say you should only use 3% of your portfolio. In this way, you don’t suffer irreversible losses.
Check out our telgram trading signals group here.
The best crypto trading strategy should have you INCREASE your bitcoin wallet size, not decrease it.