The Crypto market is seen by many traders as a very risky trading activity. This high-risk reputation is the result of the total number of traders who have lost money by speculating on currencies. It is important to remember that you should not invest more than 10% of your family income.
According to the data, 90% of traders already lose their total capital by investing wrongly, that is, against the trend. For the recommended broker this is important with https://coin-dreams.com/.
Let’s take a look at some helpful tips to decrease the likelihood of losing money.
- To reduce the likelihood of loss of your capital:
- Exclude the continuity of orders open during Friday, as the market can open the next session with an unexpected gap.
- Stop operating after 3 unsuccessful open orders and analyze what is happening to you. Your loss can be purely emotional.
- Close your trade with a loss of no more than 5% of the funds invested.
- Make sure you are away from the dreaded Stop Out.
- Do not use intuitive trading.
90% of orders opened randomly results in severe losses. The reason for this is that the image
you see on the chart of the financial instrument is not exactly the same picture that can be obtained
through technical and fundamental analysis.
- Do not be afraid.
- Large numbers of trades oscillate in the wrong direction due to high volatility.
- you can continue to move in the right direction so you had already planned.
- Verify that the correction curve will not jeopardize your technical analysis.
- The market may present only a small correction OR a complete reversal of trend.
- Big Profit Shares (Take Profits) and Small Losses (Stop Loss)
Every professional trader uses the Stop-Loss tool in order to minimize their losses. It is very important that you calculate your losses in advance, not risking more than 10% of theInvestment.
A Stop-Loss close to open order would not be ideal. However, it is advisable to put your Stop-Loss at least 15 pips away.Correction curves happen easily. Do not despair if your equity is negative.Your Take-Profit may be closer to being hit than you think.