When trading cryptocurrencies, many investors encounter a problem when increasing their positions: if I increase my position and the market continues to decline, won't I suffer even greater losses?
But if I don’t increase my position, and the market price goes up, wouldn't I be at a loss?
Such a choice puts many investors in a dilemma when increasing their positions in cryptocurrency trading. What are the techniques for adding positions in the cryptocurrency market? How to increase positions when trading cryptocurrencies?
In fact, there are certain methods and skills for increasing positions in cryptocurrency trading. Here are some summarized techniques:
1. Increase positions in steps.
2. After confirming the trend, do not hesitate; boldly increase your position.
3. After several days of decline, add positions when a slight recovery occurs.
4. Add less during minor declines and add more during significant declines.
When trading cryptocurrencies, following orders is something that must be learned. Following orders requires certain methods and skills.
Following orders generally occurs when the price of a cryptocurrency shows drastic up-and-down fluctuations. At this time, there is also significant risk, so following orders naturally carries considerable risk as well.
How can we minimize this risk to the lowest level? Below we will briefly introduce the principles of following orders.
1. Choosing the right timing for following orders.
We have mentioned that following orders mainly occurs when the market price of cryptocurrencies experiences drastic fluctuations. Therefore, the timing for following orders is when the price starts to fluctuate strongly.
How to determine when the price of a cryptocurrency starts to fluctuate violently? It mainly exists during a breakout. A breakout refers to the breaking of all K-line combinations, including support levels, channels, resistance levels, etc.
2. When to choose to close positions after following orders.
Based on long-term market observations, we have found that under normal circumstances, after a breakout occurs, the price will move several points in the direction of the breakout, depending on the cryptocurrency. If we choose to follow orders, it is when we have made a profit of a few points that we perform the closing operation.
3. Specific operational techniques.
Under normal circumstances, when a cryptocurrency price experiences drastic fluctuations and we make a trade, the conditions of our order may change at the time of execution, and at that moment, your order is at the price when you initially placed it.
Another point is that during cryptocurrency trading, the price fluctuations can be quite rapid, so after our order is executed, we should immediately set a take-profit price.
By doing this, once the exchange rate reaches the take-profit price, the transaction can be completed automatically. The main purpose of this is to prevent investors from missing the best trading time due to their own greed.
When trading cryptocurrencies, the key to accurately managing position increases is, in summary, to have a precise judgment about the market's future developments, and if a wrong judgment occurs, there should not be too many unnecessary losses.
The main difference between being inexperienced and mature is that maturity exhibits a calmness and composure that is uncommon after experiencing ups and downs, while inexperience shows superficiality and simplicity.
In real trading, everyone will encounter a period of adversity, where their actions lead to stop-losses, and their bets go wrong, losing all market sense and making frequent mistakes; in such situations, learning to exercise restraint and self-discipline is the only solution, maintaining emotional stability and letting go appropriately, allowing timely adjustments to mindset to avoid emotional trading. Everyone experiences such situations, and every master has emerged from such gloom, so we should understand that preserving strength in adversity and seizing opportunities in favorable conditions is the way to achieve success.
