Smart trading strategies:
1. Smart capital allocation (incremental reinforcement):
Instead of entering the trade with your entire capital at once, divide the amount into parts. For example:
30% at the current price.
30% when the price drops by 5-10%.
40% when the drop is larger by 15-20%.
This way, you can improve your average purchase price and increase your chances of profit when the price rebounds.
2. Set a stop loss:
Do not enter any trade without determining the point at which you will exit if the market reverses against you.
For example: "I will exit the trade if the price drops 15% from my entry point."
This protects your capital from significant losses.
3. Set clear profit goals:
Determine where you will close the trade to take profits.
For example: "I will sell half the amount when the price rises by 15% and leave the rest for a higher target."
4. Risk management:
Do not risk more than 1-2% of your capital in a single trade.
If you lose a trade, the loss is small and does not affect your overall path.
5. Analysis before emotion:
Rely on technical or fundamental analysis when making your decisions.
Do not buy a coin just because it is a "trend" or due to rumors.
Stick to your plan, and do not chase the market randomly.
Golden tips for trading cryptocurrencies:
Learn how to manage your patience: the market moves slowly at times, so do not rush.
Follow the news but do not trade based solely on it. Many news events may have already affected the price.
Portfolio type: Do not put all your investments in one coin.
Learn from your mistakes: Keep a record of your trades, analyze successes and failures.
Do not invest money you cannot afford to lose. Cryptocurrency trading is highly risky$BTC $PEPE $ETH
