In this article, I will explain the most effective way for you to have the highest probability of surviving an unexpected market drop without suffering any loss.....!
If you are one of those people who mostly trades with buy orders, it has surely happened to you that you bought a coin and it starts to fall and fall, and then you get stuck not knowing whether to keep waiting or accept the loss, while your fear grows and your impatience begins to become strong and disturbing...!
The first and most important step that will give you the greatest chance of being victorious is to trade Without Leverage, that is, at 1X, and in Isolated Margin Mode... By trading without leverage, your liquidation price will be quite far away, in most cases it will be outside the price range of the asset, so you can leave the position open for a very long time with very little chance of suffering a liquidation...
The second step is to improve your entry point, or your average purchase cost, also known as DCA... This way, when the market starts to recover, you will have a lower and more competitive entry point...
The third step is to have a limit of what you are willing to risk in that position, that’s why I recommend always entering with a small amount, for example, if your total capital is $10,000, your initial purchase should be $25, if the market drops, you add another $25, and if it continues to fall, you add another $50, and then you stop and wait for the price to recover...
The fourth step, and perhaps the hardest, is to have patience and wait for the market to turn in your favor and generate a profit for you... In the meantime, you can focus on looking for other opportunities without being too concerned about that position so that it doesn't cause you anxiety or any other negative feeling...
And remember that you have the peace of mind of knowing that what you are risking is only 1% of your total capital and from my own experience, if you wait long enough, you will be able to close that position with a profit...
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