Hey there! Are you a new trader with a small portfolio? Are you tired of watching videos on trading that make no sense to you? Are you losing money instead of making it?
If you answered yes to any of these questions then this article is the one for you. In this article I will share with you the simplest trading strategy which you can apply today to make a profit.
Why should you trust this strategy?
I know there are many people all over the internet tricking you into getting likes and views, making it difficult to trust some random article, so I am going to give two reasons why you should take my word and apply this strategy.
1. I am a small trader and started my crypto journey with $16.85 about 5 months ago. I went through countless videos and tried many strategies but ended up losing money. However things changed when I came across the strategy I am about to tell you in this article. Using this method I have grown my portfolio to $70. Check out screen short below as proof. Oh! And full discloser, I have recently invested this $70 in a spot copy trade so fingers crossed it works out as well.
2. I am a pharmacist by profession, and am in the crypto space to learn trading and use it to generate a side income for the time being. The final aim is become a full time crypto trader and change my life. All the information in this article is based on my own experience and none of it sponsored or incentivized in any way.
With that out of the way, let us get started and make some money today. For this strategy you do not need to learn any chart interpretation or technical analysis making is ideal for new traders like me so, let’s go…
Step 1: Select A Coin
Right then, the first step is to select a coin to trade in. For the purpose of this article I will use $HMSTR coin. You can select any low cost coin that has good market cap. Make sure to chose a coin that has a good rating on coin market cap, the idea is to chose a coin that a decent trading volume and has been around in the market for the past few years.
Here are a few good coins other than $HMSTR that you can chose
a. $PEPE
b. $SUI
c. $IQ
d. $XRP
If you understand the technique you can apply it any coin. The only catch is you should be able to purchase a complete token so if you have like $10 or $20 you can chose coin that has a $10 or less price tag for this strategy to work. If you have a big portfolio you can chose high price coins like $SOL and the results will remain consistent
Step 2: Observe the Coins Movement
Right then let’s make some money
a. Open the chart for $HMSTR coin on your Binance app
b. When the chart opens up note down the current price
c. Note down the values for the 24h High and 24h Low the coin has moved
d. Change the time setting of the chart to a 4h time frame.
e. Once the 4 hour chart appears simply slide it back and note down the lowest prices the coin has touched in the past 16 hours.
f. These low value are the points of entry
g. Calculate a simple average low price based on the past 16 hours movement and compare it to the 24h low price you noted a few points back
h. Repeat the same on the 4 hour chart for the high prices and calculate an average high price.
So far, so good. You now know the highest price the coin has moved in the last day as well as the lowest price you also have an average high price and an average low price calculated so, now you are ready to enter the trade.
Step 3: Enter the Trade
a. Open the live chart of $HMSTR coin by switch the time setting back from the 4h our setting in the previous step
b. Notice a blue line moving across the graph this is called and estimated moving average line (EMA Line)
c. Observe the chart as it moves for 30 min
d. Note if the chart stays below the EMA line more or move above it more
e. If the chart stays below note down the price at the lowest point
f. If the moves above note down the price where the chart touches the EMA line
g. Buy the coin at this price for 10% of the amount you have in your portfolio.
h. Note down you buying price
Concept:
Here is the concept we have bought at a low price corresponding to the live movement of the chart. Now if price increases from our buying we will start to make a profit.
Step 4: Determine You Exit Price
Right then, now that we have entered the trade its now time to find the most profitable exit price.
a. Calculate 3% of the buying price using a calculator
b. Add the amount you get to your buying price to get a selling price
c. Check to make sure the this calculate selling price is below the 24h high if not the reduce the value
Note: Up till this point we have not done any selling order we will only observe and buy.
Step 5: Stay Profitable Even if the Price Goes down
Now comes the fun part, if you see the chart going down from your first buying, you should be happy since you still make a profit.
Here’s how
a. For every 1% decrease from your buying price invest 20% of you portfolio
b. By doing this you will have bought more at a lower price reducing your over all buying cost
c. Set a selling order at the selling price you calculated in the previous step and sell all the coins at the price
d. Leave the chart and check back in 2 to 3 hours just see if your have hit your target
e. Book a 5% or slightly more profit( assuming the price falls 2% below you buying price)
f. Repeat the steps and keep growing your portfolio
What is this Strategy called and how does it Work?
This trading Strategy is called Dollar Cost Averaging and it is a legit trading strategy used across the market by small and big traders alike. It works by helping you more coins at the lowest price possible below your initial buying price thus bringing you average buying cost down. When the average buying price comes down you start to make a profit rather than losing money.
Key benefits
1. No need to for intense technical analysis
2. Can be used on any coin and in any market condition to make money
3. The Strategy make a profit and minimize risk
4. Easy to apply and learn
5. No need to stare at charts all day
#binance #SpotTrading #RiskRewardRatio