For those of us who still find it difficult trading Cryptocurrency, this article will be very helpful. I will be revealing how I trade and why I don’t experience that much losses in my crypto investment capital. The reason why most of us don’t understand why they should buy the deep is hidden in the strategy that I am about to reveal.
But before I begin, I will like to ask, What kind of trader are you?
A Swing Trader or a Day Trader?
As a Swing Trader, the strategy I am about to reveal will be very helpful as it ensures that you always have backup funds available for any eventuality. The art of Trading Crypto is a bundle of skill sets and no single trader holds monopoly to this event.
As a day Trader, you are able to Make on the spot decisions, whether or not to buy or sell because you need to churn out a profit at the end of every single day, and for this singular reason, you might be tempted to hold a trading position with all the funds in your wallet.
As a Swing Trader, the above strategy will get you killed, just as you anticipate a sudden upturn in the scheme of things as price of coin shoots up, you must also be prepared to embrace a corresponding downturn trading position with the backup funds in your wallet should there be any downward spiral in the price of coin when part of your trading capital is already locked in a trading position.
ILLUSTRATION
Let’s just assume for a minute that you have 1,000 XRP Coins to trade with. And that’s all you have, as a Swing Trader, I will advise that you sell half of that to have an equivalent backup capital to embrace any new dip event that may fall in your favour. It is not safe to have all your funds as coins alone or as cash alone.
The best trading position is to be ready at every point in time to buy and sell Crypto.
To to do that, you must be coin ready and cash ready to embrace opportunities and so it is even more advisable to split your investment funds into 4 parts and keep a notepad on how many coins you bought at what price so you can make a profit on every price position as the candle moves up and down the various price positions of traders.
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