Here is where I provide my insight and opinions of potential 10% movers…
We all know that the crypto space can be very lucrative, to the point that greed sets in and you ‘want all you can get’. A disciplined trader knows that you have to secure profits no matter the trading model used, no matter if it’s in the stock market, forex or crypto trading.
Being completely transparent, I have left money on the table many times over, due to not being disciplined enough secure profits within the trade(s), even during a huge upward momentum climb…because I didn’t sell before the pivot/reversal came crashing down.
I have adopted a trading strategy that I found has become iron-clad (for me) to ensure that I secure profits. ~ It’s a 10% trading strategy. On rare occasions I will hold for a 20% trade. Find something you want to get into, that you see you can capture 10% in profits. Set your buy order, then as soon as it’s filled, set your sell order. Once the sell order is filled, rinse and repeat on your next targeted trade. In the event that you feel that the upward momentum is going to firmly continue, look at only getting in/out of the trade for another 10%.
Make sure that you utilize stop loses, they are key to keeping you from getting wrecked. If I am doing a 10% trade, I generally utilize a 4-5% stop loss.
“Leverage is just a tool that can be utilized to reach desired position size. It’s not leverage amount that you need to decide on, it’s position size. Figure out your position size based on amount being risked, entry and SL, and then use the necessary amount of leverage to achieve that position size.” ~ @CredibleCrypto
The key isn’t the amount of leverage, but the position size. Calculate your risk, set your entry and SL (Stop Loses), and then use leverage to match your strategy.
Swing Trading
Swing trading is a popular trading strategy that involves aiming for quick profits resulting from short-term price movements.
While some swing traders open their positions and hold them open for a few days, others may go as high as a few weeks. Usually, these types of traders look for assets that are expected to move up in the short-term, and then they sell them once they hit their specific profit target.
If executed correctly, swing trading can be an effective way to trade, though it requires a good deal of trial and error (and not to mention, a lot of discipline.)
Maybe a quick calculation is helpful so here we go. Say your portfolio is 10k, you risk 2% per trade. That means if you get stopped out you lose 200 bucks. Now if your stop is say 4% away on a trade, your position size should be that if it moves that 4% you lose the 200.
So if 200 is 4% then 100% (the position size) is 200*25=5000. Now if the max leverage is say 10x then you can deposit 500 dollar, put it on 10x leverage and open the position of 5000. It looks large but you only stand to lose the 200 if your stop gets hit.