Today i need to talk about something very important for every Crypto Trader
An advice for all people who reading this article
A problem face every daily Traders That make him lose money with no reason : Money Management
Why we got stuck in Trades with loss and we can't close the position to stop the loss?
Simply you think that the Trade is about going down a little bit, so it is difficult for us to sell at a loss, and we say, "Come on it will be back to the moon," and "Hodl guys we will fly soon,
OK but you need to know that there are support areas which if they got broken The Currency will get dipped to darker areas which make you suffer more from the loss
and it may not bounce back to your entry point so your only wish become to get your money back
Here you have to ask yourself a question
Is your goal that you spend months to just get your capital back ?
of course this is not our goal other wise you can buy goods and open store in your country better than the heartache of crypto trading ?
mmmm ok listen we can solve this situation
We need to do two important things to make our trades works well
First: Firm management of capital
we have to agree that there is nothing called ( open a position with100% of Your Capital money , that's totally insane buddy !
If you are doing this make sure you are at the wrong side of crypto Traders,
Here is a Tip to make a good management for your capital
Simply divide the Capital money into 10 Equal parts
5 parts for trading, 3 parts for long period cold holding and 2 part will be in form of dollars or any stable coin for emergency State or Golden Chances
Example: if you have $ 1,000
make $ 500 for trading, $ 300 for holding And Gathering and The last $ 200 for emergency
The $ 500 for trading will be splited into 3 to 5 part for positioning with Stop Loss activation
two of five trades will be scaling trading just hit and gain earns in few time , Don't Forget The Stop Loss
It is necessary to understand that entering into stages and dividing the capital of each transaction for more than one part for better average income
Follow The Great Low of Traders :
buy low sell high means buy on the dip and sell on the upsurge
so make sure that you have a notebook, record your Trades , date, quantity, entry and exit, and profit or loss ratio.
Now You Can Run your Wallet as pro.
Secondly and most important and necessary to use
The APPLYING OF STOP - LOSS
The market in late 2017 was a strong upsurge and all profits and mostly earned a reputation of 19 thousand dollars for the bitcoin
The market is currently acting as Traditional stock market and falls and rises sometimes occur unjustifiably and exaggerated, taking into account the high volatility and instability and the absence of solid land for many currencies
So if you need to keep you Capital from the loss in the depths of the bottoms
All you have to do is apply the golden rule (Satisfied with profit and convinced by loss)
It is not reasonable to be losing money and the market is going down Then I say I'll wait for recover and win everything
It is true that it is possible because of playing margin trading and leverage its counterpart, but you are gambling with your money. Whatever you are, you will lose your head and do not hold up.
So when you in an opening position do not be random thinking , never
Be convinced that your goal, for example, 10% profit and loss 5% will not increase more than this and Take Profit in stages according to the goals
Think for a moment,
If the market turned upside down on you unexpectedly, Stop loss will get you out of the deal at a loss of 5% out of capital and you will be returned 95% of the asset so you can enter into another Trade and compensate for 10 or 20% profit
So let's say if you left yourself swinging in the Dip and got 40 or 50% of the capital, you will wish to go up just for 20% to get out of this hell.
If you get a big dip, The bounce will never be enough to send you to the entry zone again.
Crypto Market is about Gain and Loss so Know the right place of your Stop Loss before you know your goal.
But you will say to yourself i get out by stop loss this the price go up and i missed the upsurge
- Simply you need to take care of two Things
You are out of the danger zone, So you are able to Re enter the trade from better volume area with higher stability and it will be easy to re gain the lost money
Secondly, and most importantly, you have to watch the closing of the Time Frame Candlestick and don't execute with just the price touch line
Watch the Candle Stick Close and Be more Patient to make better profits
wish you all the best of luck with your trades