Good morning Crypto Nation! A promise is a promise and today we are going to make sure you stop losing money and take advantage of this #BullMarket📈
In this article I will help you to:
Know which coins to buy
How to manage your earnings
How you will be able to operate in futures with less risk
And, fundamentally, that you don't lose money.
First, a small clarification: This article is dedicated to new users, those who are experiencing their first bullish cycle and do not know how to take advantage of it. Secondly, these tips are based on My trading strategy which has given me huge profits, but more importantly, has prevented me from losing money and has allowed me to be profitable on a sustained basis.
Which coins to buy:
The most important thing is to know which coins to choose to hold in this cycle, and more importantly which ones are useful to trade.
If your investment plan is to buy, wait and sell after the price increases, stay away from memes and low caps. If you want to use that strategy, go for coins like BTC, ETH, ADA, XRP, UNI and LTC. Why? Because they are the big ones in every cycle, it doesn't matter if they have been quiet for a long time, the onchain data doesn't lie and institutional money has been trusting, investing and accumulating each one of them.
They give us the advantage that their huge market capitalization is a kind of insurance, they are unlikely to crash. However, it is also a brake, since it is more difficult for them to do many X, but it is an investment with reduced risk.
On the other hand, which ones are we going to operate?
A coin with a lower market cap is a good choice, because our strategy will be to hold for a few days. We buy, the price increases, and we sell.
Which ones are a good choice? Those with high volatility, high liquidity and high trading volume.
My preferred coins in these cases are those like: FTM, DODO, AVAX, UNI again, DOGE as well.
The thing is, we choose them based on their characteristics, but we don't buy at any time. If it went up 20% today like $TON , you're not going to buy now. You wait for a correction and then you get in.
Understand this: No rise is parabolic, they all move in waves. First an impulse wave, then a correction, then another impulse. The peculiarity of a bull market is that corrections are minor, but not non-existent.
What you already know is that it has the capacity to rise, volatility and volume, now you are going to wait and enter at a good time.
Trading in futures:
The first thing I'm going to tell you is:
If you are convinced that futures require excessive leverage, that you cannot trade at less than 25X, I ask you to leave, stop reading and go lose money.
If you intend to trade at so many X, you don't have a strategy, you only have luck and collateral money to support the position when it goes against you. But fundamentally, it is not sustainable over time.
In a bull market, movements are aggressive and very strong in a short period of time, the last thing you need is a lot of leverage. And below I will explain why.
The movements are strong, and the corrections also shake up your operation.
Liquidation wicks ruin the overleveraged.
An operation based on luck is not sustainable, it is not a viable system at all and that will leave you out.
What I recommend most if you are starting out is that you operate at a low X, for these reasons:
You have already seen that there are increases of 20 and 30% in one day, by operating at 3X you already have between 60% and 90% in one day.
You can have wider stop losses, instead of putting a 2% stop you can stretch to more than 5-7% without losing excessive money and joining a long movement.
Don't open a trade in the middle of a movement, just like what was said above, if it has already gone up, wait and don't jump in headlong.
Once your operation was successful, you have two options: Close and collect everything or close half, so you have money for another operation and you can leave the first trade open in case it goes up even more.
As an example, I share with you two operations that I opened:
Neither of these trades put my capital at risk and I can manage both of them over a very long period of time.
Risk and profit management:
What takes the longest for new traders to understand is not to be greedy. Try to be realistic in your operations, don't look for a 10X in a day, it's unlikely and very risky.
Focus on making SUSTAINED gains.
Your losses must be calculated:
A stop loss can take up 20% of a position, really, it's not much.
A spot purchase can go wrong, so calculate how much you are willing to lose. For example, if it falls by 20% you can take the loss or buy back to minimize losses. The important thing is not to get stuck, which is very different from holding because it was the plan.
The operation is always in favor of the trend 💹
You are learning, don't go short if everything is going up. Trade with the trend, because if you have to endure a correction you will eventually be in profit. Going short in the middle of a bullish rally is burning money, don't do it.
Open your options, you can choose to buy only spot until you master the operation well, then venture into futures, you can also resort to copying someone in "copy trade" (I have an article about that)
Don't chase the price, trade based on analysis, not emotions. If something has already gone up, wait, don't despair.
Conclusions:
In this bull cycle, you are not going to get rich, you are going to do something much better. That is learning, because there is nothing easier than trading now, so learn because this is the time to do it.
As a person who lived through bull markets, crypto winters, crashes, narratives of all kinds, etc. I was able to learn to trade in any circumstance and win in each one of them, and I want you to be able to too.
And you have to learn how to trade because when we finish you will be trading with a lot more money. A $20 trade is not the same as trading $4K per trade: When you manage large amounts, you will be grateful for having good risk management and having learned conservative and sustained trading.
Crypto Citizen says goodbye! I promise you that this time you will not be left out, little by little we will work to make you profitable and independent.
Stay tuned for new articles.
