Crypto Trading strategy [Money Management]..
I regularly see lot of messages popping showing huge losses in account with multiple positions.. people posting losses upto $100k..
However, people forget basic rule of money management that you need to do proper risk management...
How can I do risk management in F&O and spot trades?
1. Don't open 5-6 simulatenous positions unless you are very sure that market is expected to remain bullish. Focus on making money in 1-2 positions.
2. Don't Jump in positions with all capital. use 10-20% of your capital so that you can average your positions if volatility exists.
It works.. i have survived 50% fall with this strategy.
although you earn less but you don't lose and be regular trader.
3. Observe monthly, weekly, daily, hourly, minute charts.. before taking decisions. Don't go for capturing falls as they generally fall further.
4. Bullish runs will mostly be there for 1-2 days if coin increases more than 60-70% and next day coin corrects itself.
5. Don't take too much leverage in trade. It multiplies profits as well as losses.
6. Buy and keep some $BNB as it can be used to earn airdrops, staking and it has huge potential as binance is earning huge commissions.
7. Focus on next gen AI technology, Good layer 1 projects, Defi that have significant potential for long run.. some are $XRP , $AI etc..
Remember guys, You need to earn regularly to become consistent in trading.. so better earn less and consistently then losing and leaving all together..
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