Fellow traders,
Today I want to talk about the other side of successful trading. Risk is a central factor to both consider and manage in your trades in order to stay in profits. Without a doubt, too much risk can wipeout any profitable trader quicker than you can say Fight Club. But what about the other side of the coin? Profit. Yes, that's right - the intelligent investor will manage his profit just as well as he manages his risk.
Before I get to the dirty bits I want to share my own experience as an example of profits that I could have managed better to substantially increase my bottom line.
The Tale Of Ripple
Early on this year I started bagging up Ripple's XRP. Yes, I know - many hate Ripple. Corporate, bank non-crypto coin as some like to hate on it. Well I was not such a strong believer either, but as a trader I am interested in profits. These profits can then be turned to bitcoin or fiat - chase profits people. After doing my own research I put my money where my mouth was and laid down a few hundred on $XRP. I filled a lump sum order for $0.052 and watched it pull off an amazing bull all the way to $0.42. This is over 700% increase - one of the amazing runs that can only happen in crypto.
Unfortunately I did not sell, I wanted to clock in 1000%. This cost me profits. I watched it fall all the way back down before selling it all at $0.24 for a 360% increase. Yes, I made a ton of profits - however I probably lost out.
The Tale Of OMG
On the flip side I want to share my trade with OmiseGo or $OMG as it is listed. Again, I found the project and spent a few days researching and watching the charts. This time I picked up at around $0.69 and it started running up very quickly from there. I sold off almost everything at $1.17 for a 70% gain on my initial buy in. Well my fellow trader CoinNomad has been keeping his position since and at the time of writing it is at an impressive $2.75 or 300% up from my entry.
Manage Your Profits
How could I have managed by profits better? Sure you can sell the top if you believe you can call it. Instead I want to share a different strategy that I use with my large cap positions and have since started adopting in small caps as well. Despite volatility, if the increase in value is genuine and not a pump and dump [which is easy to spot] you can scale out of the trade. What I mean by this is sell progressively. Below is an chart with marks of every point where I could scale out xx% of my position depending on the volume, trend and my confidence of the run. What this will do is spread your profit over both lower and higher percentiles. You can progressively adjust and come out with more profits.
Manage your profits as well as you manage your risk and you will soon be rolling in the green consistently - and MORE of it!
Stay safe and stay in profits!
-Tyler Crypto
Tipjars:
Bitcoin: 1Btt9fJsSw1Hj5NeKy8DmyU4C3hxvFLcZV
Litecoin: LPh4MayLMDqYAVSumnoSMyRhVS1EmvEVaS