#CreatorPad Very important words for every beginner in the crypto field ✅
"Portfolio management"
One of the best important strategies in the world of cryptocurrencies is capital division.
1- A piece of information you must understand well, which is that preserving your capital is one of the most important factors in the financial market and is your greatest profit. Be assured that opportunities are always recurring in the market.
2- You need to determine your goal and direction before starting trading.
Am I an investor (HOLD) or a speculator (SCALP)?
If you know the answer, you have solved a large part of the problem, as you will divide your capital according to your direction.
3- Dividing capital is very essential and healthy for the portfolio and gives you diversity in options.
Example: $1000
50% investment ($500)
20% speculation ($200)
30% ($300) cash and liquidity you will need for reinforcement.
4- "Reinforcement" is very important and necessary to obtain an excellent average price, especially for investors.
Example:
Investment currency entered at a price of $1.
The currency dropped to $0.5, which is a common occurrence in the cryptocurrency market. Here comes the role of the cash and liquidity we talked about above, becoming as follows.
Your basic entry price: $1
Your entry price after reinforcement is $0.5
Average price "approximately": 0.75
Thus, your basic entry price after reinforcement is
$0.75, not $1
5- Taking profits and raising the stop-loss: This is very important and many overlook it due to excessive greed for profits. Always take your profits and raise your stop-loss to your entry price to exit with "zero loss."
Tip about "experience": Do not wait for the trade to achieve its targets exactly, take your profits and do not wait to reach the targets exactly because the price may get close to the target and reverse on you and return to your entry price again, wasting your time and profit.
Good luck 🌷