5 Tips to Keeping Your Crypto Portfolio in the Green During These Current Times.

Top Tips:

1. Never Increase a Losing Position.

Sometimes averaging down is the sensible thing to do. After all, an investor could offset their losses faster as soon as prices recover. If an investor initially bought Ethereum (ETH) at $220 and it drops to $140, doubling down his position would end at a mean price of $180.

This strategy would scale back the break-even to a mere 29% gain rather than the first 57%. Gartman advises investors this is often the worst strategy ever, and it’s not just inexperienced retail traders that fall for this one.

Losing positions should be terminated, not increased.

It doesn’t matter how bullish one is on a theory. If the cost of an asset continues to maneuver down and reaches the stop loss, close the position. Don’t immediately place another bid at a lower level. The main option that should be considered at this time is selling even more.

The best procedure is to close your losses down early and often.

Don’t argue with market sentiment. Don’t expect people to align with your vision, regardless of how “right” you are. Watch out for confirmation bias, especially on social networks.

Investors tend to look for similar mindset traders and block opposing ones. The issue with this approach is it’s impossible to understand the true motivations of crypto-Twitter analysts. What if the crypto influencer you cherish is expecting a pump right after his buying recommendation to offload his bags?

Respect the trends over your gut or the opinions of others.

When investors correctly interpret market trends, even a lousy trade can produce a positive result. This is the time an investor should be raising the stakes and adding to existing open positions. On the opposite side, when the value goes down, slow down and make each position smaller.

It is much better to be the master of a couple of successful trading tools rather than sit observing price movements through the numerous indicator tools. The fewer variables, the better it’s to form a choice.

If the cryptocurrency you’ve been following jumped by 15% and by another 20% the following day, leave it. Even 300% of bull runs present relevant drawdowns. Rather than having the fear of missing out, set bids at lower levels and wait.

Typically, the most profitable trades can take days if not weeks to happen and therefore there’s no need to rush into any trades. Monitoring the price constantly will undoubtedly cause an investor to overtrade as hype and fear are the enemies of each trader no matter their experience or skill level.

Anyone can draw a strategy. The hard part is holding steady and following the plan through. Work smarter, not harder.

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