A SIMPLE BUT PRACTICAL TRADING STRATEGY THAT YOU MUST KNOW!
1/ Divide the total available capital into five equal parts. For example, if you have $10,000, divide it into five parts and use $2,000 for each transaction.
2/ Use part of the capital to buy a currency at the current price.
3/ If the price of the currency drops by 10%, buy another portion.
4/ When the price of the currency increases by 10%, sell part of it.
5/ Repeat the above steps until you run out of capital or all the currency sold.
This strategy helps reduce anxiety when currency prices fall, because we will continue to buy as prices fall. Even if you run out of capital, that means the currency price has at least dropped nearly 50%, unless the market experiences a downturn. Each sale can bring a profit of 10%, for example, if using 20,000 each time, will earn 2,000.
However, a 10% fluctuation can make trading difficult and affect capital efficiency. This can be addressed by reducing volatility and using stable financial products when capital is idle, providing additional income.
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