Successful Trade Management Tips

Disclaimer: This article is not financial advice. The author is not a financial advisor and this article was not paid for.

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Hey Everyone!

This is a short trade management article filled with personally curated tips (based on the cryptomarket) to help serve as a list of tenets one can follow to avoid incurring major losses while trading in crypto.

Trade management is something that ANY and EVERY successful trader must learn and perform at some point in time.

Otherwise, you’ll never be successful at trading. At least not for any prolonged or sustained periods of time.

Sure, you may be able to ‘call’ some good picks, but if you aren’t managing the picks properly, you won’t actualize the profits that you would have otherwise had, and you’ll end up either making less than you could have had or maybe even leaving with a loss in some cases.

So, without further adieu, I present to you:

Seven Effective Trade Management Tips

1. Actually having a strategy before entering the trade (i.e., if price goes below/above this point I’m selling, I’m going to take 20% of profits if it goes here, if $BTC does ____, then I’ll do _______).
2. Outlining where you expect the price to end up at and what your plan is when it gets there. Don’t be another trader that makes a good trade and then when you see the price of the coin go up, you start panicking because you have no clue when you should sell and you don’t want to risk losing more profits by pulling out too early, but you don’t want to stay in too long and then get screwed.
3. (When applicable), consider opening up a long/short that’s on the opposite side of your trade to hedge (i.e., if you’re long, open up a small-ish short position to hedge you a little).
4. Take profits at some point if your really doing well in the trade.
5. Determine whether its more prudent for you to sit back and patiently wait for the price action to do what you expect or if it appears that you were “wrong”.
6. Avoid trading off of emotion. Did your girlfriend/boyfriend just call you and tell you they’ve been cheating on you for the last 4 months? That sucks. Probably not the best time to start running through charts and making major decisions.
7. Examine the impact to your overall portfolio.