Surviving the Latest Bitcoin Dump

  • Identify a trade: You need to plan to identify the entry price first. For that, you identify a trading opportunity by considering various bullish chart patterns, fundamentals analysis, or market sentiments. You need to develop clear SOP’s to enter a trade and follow them religiously.
  • Identify stop loss: Next most important thing is to plan the stop loss level in advance which can be below a horizontal or trend line support or below a fib level. A combination of many indicators will best give a strong stop loss level like if a fib level and support level are identified at the same point then a breakdown below that level is worth exiting from the trade. It will differ from trade to trade and also depends on the individual’s risk appetite.
  • Exit strategy: Identifying the exit point to book profits in advance is most important to secure your profits. You can identify more than one target but you need to stick to them and even should place orders in advance. Profit is never yours unless you book it. Greed plays an important role while booking profits. Traders tend to not book the profits by assuming that the price will keep moving further in their way but they might end up losing the trade. So, always identify the exit point in advance and never look back. Another strategy that you may use to secure your profits is to keep moving your SL level up with the growth in the price. Most of the exchanges provide the stop trailing option that can be used for this purpose.

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Crypto Rand

Crypto Rand

7.8K Followers

Investor & Trader. CEO of Blockground Capital. Based between Andorra and Bangkok.