TRADE WITHOUT RISK. SAFE Rule. Picture Detailed description!
Each trader knows: the price can always turn around and go in an unexpected direction. In this case trader urgently sells assets to minimize losses.
Better a small waste than a huge loss.
The SAFE Technique allows you to remove even the risk of a small loss.
You need to be able to do three things if you want to make SAFE: Buy / sell coins. Choose the suitable point of entry by using technical analysis. Hedge your current position by putting stop-loss, which minimizes losses in the case of force-majeure.
Let’s consider SAFE example for the current situation at the BTS/BTC
The first step is to open the transaction, put the stop limit.
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The second step - if we see that the price moves to our advantage we close the half of the deal. Selling the coin, removing one stop limit.
From this point we have no risk at all!
The third step - close the second half of the deal when we notice signs of the turn with Profit.
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So, SAFE in three steps:
1. Bet double “SELL”, make 2 stop limits
2. As soon as we are in profit - sell half of the asset, remove half of the STOP.
3. Close the second half of the deal when we notice signs of the turn with Profit.
WHAT TO DO WHEN THE PRICE WILL NOT GO IN THE PREDICTED DIRECTION?
If the price doesn’t go in the predicted direction the stop order is activated automatically, we sell in the breakeven half of the stake as we have the profit from the other half of the stake. However the statistics says that in the 95% of cases if you made proper technical analysis the price goes in your predicted direction even a little bit - it’s enough to cover all risks.
Correct implementation of those 3 steps for each transaction WILL KEEP YOUR DEPOSIT IN SAVE!
Good deals!