* Spot Trading Tip #1 ----- Never go all in on one price position.
So I thought I'd do this series where I can provide some tips which come from my own experience of having traded Crypto for 8 years successfully.
A lot of veterans may roll their eyes at these, because they are mostly common sense, but the idea is to help many people who are new to Spot trading.
Ok so ---- Never go all in on a single price position. Now there is some nuance to this, but in general, it can be a very bad mistake.
Let's take $BCH as an example. It is currently trading at $279 as of this post.
Bitcoin Cash recently had an upsurge from around $217 all the way to $354 in a matter of a week and with a pullback to its current price.
Personally, my target for $BCH is 650 per coin. So for me $279 is a good price. However, since I like doing short term trades and not just holding for a long time, Going all in with my USDT at $279 is risky because the price is still consolidating on where it wants to go, and so if a crash happens and we go back to $217 - I'd be losing $62 per coin bought, but if we went back to $354, I would gain $75 per coin I bought.
we want to reduce that possible loss of $62 per coin, and increase that $75 profit. So it's good practice to pace yourself. stretch out your USDT, buy some now and wait it out. If it goes down more, have intervals where you can purchase more. so I bought some at $279, next I will buy at $260 or $250.
Remember, no matter how bullish things may look, there will always be big pull backs.
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Like my content? You can support it by hitting the like button and following me. Appreciate you!
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So I thought I'd do this series where I can provide some tips which come from my own experience of having traded Crypto for 8 years successfully.
A lot of veterans may roll their eyes at these, because they are mostly common sense, but the idea is to help many people who are new to Spot trading.
Ok so ---- Never go all in on a single price position. Now there is some nuance to this, but in general, it can be a very bad mistake.
Let's take $BCH as an example. It is currently trading at $279 as of this post.
Bitcoin Cash recently had an upsurge from around $217 all the way to $354 in a matter of a week and with a pullback to its current price.
Personally, my target for $BCH is 650 per coin. So for me $279 is a good price. However, since I like doing short term trades and not just holding for a long time, Going all in with my USDT at $279 is risky because the price is still consolidating on where it wants to go, and so if a crash happens and we go back to $217 - I'd be losing $62 per coin bought, but if we went back to $354, I would gain $75 per coin I bought.
we want to reduce that possible loss of $62 per coin, and increase that $75 profit. So it's good practice to pace yourself. stretch out your USDT, buy some now and wait it out. If it goes down more, have intervals where you can purchase more. so I bought some at $279, next I will buy at $260 or $250.
Remember, no matter how bullish things may look, there will always be big pull backs.
--------------------------------------------------------------
Like my content? You can support it by hitting the like button and following me. Appreciate you!
-----------------------------------------------------------