TradingPlaybook
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Profit Taking during dips:
Yesterday, we saw an opportunity to buy the dip and do DCA on many of the coins. Bull market will always give such opportunities and it is important to use them wisely. However, when we buy the dip, we are not sure whether it's one off correction or trend reversal due to change in fundamental. Hence, let's understand the art of profit booking during dip to keep us ready for future dips with an example.
Let's assume that we have bought a coin at $100 USD with hope that it will go to $120 USD. During a sudden market dump, it went to $80 USD in a few minutes without any change in underlying fundamentals. In such case, we should do the DCA and add on the coin of $100 USD which will bring down our cost to around $90 USD.
Once the market recover and it reaches $100 USD which is our initial purchase price, many people get into dilemma to hold till $120 USD or not. In such cases, we should book partial profit by selling the coins which we bought at $80 USD. This will help us in not only protecting the profit but also keep us ready for a follow-up dump in the market in future.
If market suddenly dump again and you have not booked your profits, you will have less capital to do DCA.
Remember, too much of greed can lead you to more trouble. Booking $1 USD profit is better than $10 USD paper (notional) profit.
If you don't book profit, somebody else will. And, you will left with their losses!
Happy trading, peaceful trading!
#BTC #ETH #TradingPlaybook
Yesterday, we saw an opportunity to buy the dip and do DCA on many of the coins. Bull market will always give such opportunities and it is important to use them wisely. However, when we buy the dip, we are not sure whether it's one off correction or trend reversal due to change in fundamental. Hence, let's understand the art of profit booking during dip to keep us ready for future dips with an example.
Let's assume that we have bought a coin at $100 USD with hope that it will go to $120 USD. During a sudden market dump, it went to $80 USD in a few minutes without any change in underlying fundamentals. In such case, we should do the DCA and add on the coin of $100 USD which will bring down our cost to around $90 USD.
Once the market recover and it reaches $100 USD which is our initial purchase price, many people get into dilemma to hold till $120 USD or not. In such cases, we should book partial profit by selling the coins which we bought at $80 USD. This will help us in not only protecting the profit but also keep us ready for a follow-up dump in the market in future.
If market suddenly dump again and you have not booked your profits, you will have less capital to do DCA.
Remember, too much of greed can lead you to more trouble. Booking $1 USD profit is better than $10 USD paper (notional) profit.
If you don't book profit, somebody else will. And, you will left with their losses!
Happy trading, peaceful trading!
#BTC #ETH #TradingPlaybook
#TradingPlaybook -003
Now that we have discussed how much funds we should keep for active trading, it's time to discuss what is an ideal position size for Futures Trading.
As futures trading has potential to grow the wealth exponentially, many people try to open large positions in order to get rich quickly. This increases the risk of liquidation and losing all the capital in single trade.
Considering that we are at the start of a bull market, taking long positions and holding it for medium to long term can reap more rewards for anyone. In such cases, one should use only 1% of capital to open long positions with 20x leverage. By doing this, there is no probability of getting liquidated. And, whenever Market corrects, one should do DCA upto 2.5% of capital to take advantage of such dips.
Remember, large position may give you short term thrill but small position with sufficient time will give you wealth with peaceful mind.
I hope this will help you in your trading journey in future. Do like and let me know your thoughts in comments.
Happy Trading, peaceful Trading!
#BTC #ETH #GASup
Now that we have discussed how much funds we should keep for active trading, it's time to discuss what is an ideal position size for Futures Trading.
As futures trading has potential to grow the wealth exponentially, many people try to open large positions in order to get rich quickly. This increases the risk of liquidation and losing all the capital in single trade.
Considering that we are at the start of a bull market, taking long positions and holding it for medium to long term can reap more rewards for anyone. In such cases, one should use only 1% of capital to open long positions with 20x leverage. By doing this, there is no probability of getting liquidated. And, whenever Market corrects, one should do DCA upto 2.5% of capital to take advantage of such dips.
Remember, large position may give you short term thrill but small position with sufficient time will give you wealth with peaceful mind.
I hope this will help you in your trading journey in future. Do like and let me know your thoughts in comments.
Happy Trading, peaceful Trading!
#BTC #ETH #GASup
$AVAX $BTC $ETH #crypto
3 steps for such results--
1. Start with 1% margin at 20x leverage
2. Buy the dips whenever you get a chance to increase the margin upto 2.5%
3. Book profit at regular intervals but keep some amount for future growth
4. Follow step 2 again after profit booking in case of correction
#TradingPlaybook
3 steps for such results--
1. Start with 1% margin at 20x leverage
2. Buy the dips whenever you get a chance to increase the margin upto 2.5%
3. Book profit at regular intervals but keep some amount for future growth
4. Follow step 2 again after profit booking in case of correction
#TradingPlaybook