It is very important as a trader to make a plan. not really just making plan but to stick with your plan, don't put all of your fund in one coin/trade.
create a category , this is just my simple plan but works fine for me*long term = 40% ( long term means i put my funds in a long period of time maybe 6 months to 1year)
*short term =30% ( short term is when i expect a coins to make a move in a couple of days or weeks)
*scalping/day trade/ minute trade =30% ( this is the most exciting cause you should pick the coins that are very volatile)
Here is my strategy in making a position for short term trades, i don't do high risk trades cause its very stressful
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first divide your allocated fund for short term in 8, so if you have let us say 10btc, 10/8 = 1.25btc, next i created 4 entries with given percentage of my budget
first entry - 1.25btc (1x1.25)
second entry - 1.25btc (1x1.25)
third entry - 2.5 btc (2x1.25)
fourth ebtry - 5 btc (4x1.25)as you can see this is just a simple strategy that experts know,
lets give an example, let as say you buy XVG at 1000satoshi with your first entry of 1.25btc then it goes down to 900 satoshi what will you do? you got a loss of 10% already, hmmm i forgot to say you can put this after you created your analysis so you have a basis why you buy this coin,,
if thats happen you already loss 10% that you didnt expect. just relax and take some coffee
thats what experts do,,
stick to your plan its just first entry, now put your second entry at 800 satoshi and wait, if the price goes up to 1100 then good, if price goes down to 800 then good also,, thats what i do,, ok let put all of our entry set it so if panic sell happen you win for sure
set second to fourth entry if your first entry failsfirst entry at 1000satoshi
second entry at 800 satoshi
third entry at 600 satoshi
fourt entry at 400 satoshi
let us say panic sell happen that from 1000 goes down to 350 satoshi thats huge,, in my experience in trading there always a retracement in market, let as say XVG bounce to 800 only. you are in profit now with 39%,, see? even if it only bounce at 650 you are still in profit of 13%, let us learn to stick with our plan and learn how to make a coffee,
Just relax and enjoy loss for now,, just now,,
Good luck to us:)
