Take profit strategies: maximize gains in the Crypto currency
The world of cryptocurrencies has been rapidly developing in the past decade, and prices have been abruptly and decayed with a dizzying pace. While some investors earned millions in just a few days, others lost everything. But what’s behind this volatility? How can you maximize gains without putting on everything?
Understanding the cryptocurrency market
The cryptocurrency markets are notoriously unpredictable, making it difficult to predict the movement of prices with certainty. However, by understanding the mechanics of these markets and developing effective strategies of taking into account, you can alleviate risks and maximize your potential yields.
Types of tracking strategy
There are several types of monitoring strategies used by investors in cryptocurrency markets:
- Stopping orders losing : These orders are canceled by an existing sales order when a certain price level is achieved, preventing further losses.
- Taking Program
: This strategy includes sale at the current market price and from getting a profit there.
- SCALING DOWN : continuous adjustment of stop levels because prices vary, you can reduce potential losses.
Stopping orders
The stop order is a powerful tool for restricting losses in cryptocurrency markets. By installing a predetermined price level below which sales order should be launched, you can lock the profit and avoid further losses.
To set an order to stop:
- Choose your crypto currency.
- Choose the desired price level (eg 10% below the current price).
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Strategies of taking into account
Once you have placed an order to stop, you can focus on taking your profit. Here are some popular tracking strategies:
- Bullish Profit : Sell at your current market price and get a profit from there.
- Bear Processing products : sell at the previous low point (or 10% below) and get the profit from there.
- SCALING DOWN : Continuous adjustment of stop levels because prices vary to reduce potential losses.
Scalagation Down
The scaling includes continuous adjustment of real -time stop levels based on the market movement. This strategy requires:
- A high degree of market awareness.
- Real time data and charts.
- Experience with stopping orders.
To reduce the reduction, you can use a combination of technical analysis (eg graph samples) and basic analysis for measuring trends in the market.
Best Practice for Strategies Considering
Although profit taking strategies can be effective, it is crucial to follow the best practices to avoid common mistakes:
- Set up realistic goals : Understand the tolerance to the risk and set real profit goals.
- Use a solid trading plan : Develop a clear strategy and adhere to.
- Stay disciplined : Avoid emotional decisions based on news or guessing.
- Auxiliary markets narrow : Be ongoing with market movements and adjust the strategies accordingly.
Examples in the real world
Here are some examples in the real world of successful strategies of taking in the cryptocurrency markets:
- Bitcoin (BTC) : In 2017, the merchant used the stopping orders to lock profits from a gathering at Bitcoin.
- Ethereum (ETH) : The merchant conducted a bear strategy to process profit to limit losses when Ethereum’s price reached a certain level.
Conclusion
Cryptocurrency markets can be unstable and unp By understanding the mechanics of these markets and using the right techniques, you can reduce risks and increase potential yields. Remember to remain disciplined, carefully monitor the markets and adjust your strategy as needed.
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