#Bitcoin is undergoing a supply-crisis
Since the start of the year, 211 new Bitcoin whale addresses with 1,000 BTC or more were created. However, Bitcoin supply on exchanges is at its lowest level in almost 2.5 years.
Since the start of the year, 211 new Bitcoin whale addresses with 1,000 BTC or more were created. However, Bitcoin supply on exchanges is at its lowest level in almost 2.5 years.
One more time, you’re missing a lot for not being in our premium channel.
ADAUSD up 30% and ADABTC up almost 40% since we shared our insider information!
ADAUSD up 30% and ADABTC up almost 40% since we shared our insider information!
What is hedging?
A lot of people use this term in trading yet so many make beginner mistakes when it comes to hedging your positions.
We do it when we want to protect our position that’s in profit. For example, you open a long position and it goes in profit and you see some reversal pattern on smaller timeframes but you don’t want to close the position because you see an opportunity for the further move after that reversal.
At that time, you can hedge your position by opening a short position of equal or lower size so if it drops, you don’t lose profit on your long position.
This can be helpful but only if done properly because this can easily lead to overtrading and in that case, you can find yourself losing just because you opened so many trades and paid so many fees.
I do it sometimes but only when if I’m in a strong trend that I think will continue.
I do not suggest people doing this unless you’re an experienced trader with 3+ years.
A lot of people use this term in trading yet so many make beginner mistakes when it comes to hedging your positions.
We do it when we want to protect our position that’s in profit. For example, you open a long position and it goes in profit and you see some reversal pattern on smaller timeframes but you don’t want to close the position because you see an opportunity for the further move after that reversal.
At that time, you can hedge your position by opening a short position of equal or lower size so if it drops, you don’t lose profit on your long position.
This can be helpful but only if done properly because this can easily lead to overtrading and in that case, you can find yourself losing just because you opened so many trades and paid so many fees.
I do it sometimes but only when if I’m in a strong trend that I think will continue.
I do not suggest people doing this unless you’re an experienced trader with 3+ years.
What’s risk management?
You can be the best technical analyst in the world, have the best insider information and still lose money if you don’t know how to control the risk you put on a trade.
I can write a book on this topic so I will just mention the most important things about risk management.
It is very important not to risk a big portion of your account. I suggest up to 3% which is the maximum and suggested only those with smaller account sizes. I am using usually 1% on most of my trades and never above 2%.
Why this is so important?
If you risk 10% per trade, after 3 losing trades, you’ll lose 30% of your account. At that time, you’ll forget everything. You’ll forget your rules, everything. The only thing you’ll be focusing is getting back your money. Because of that, you’ll risk even more and you’ll be just 2-3 losing trades from blowing up your account.
3 losing trades can happen even to the best traders so this should be avoided at all costs.
The second thing I would like to talk about is consistency. There’s a worse thing than taking a high risk and that’s taking inconsistent risk per trade. Never take 5% risk on a trade than 1% than 3%, 7%, 2% and so on.
This will lead to disaster!
You are actually hoping to win when you risk more and you focus on the luck factor. Even with an 80% win rate, you can be in loss trading this way especially knowing that we tend to make more mistakes when we take higher risk.
These are two things you should work on. There’s no technical knowledge that can justify taking a high risk. Go step by step, this is a business, not a casino. You should protect your capital then focus on making more of it!
You can be the best technical analyst in the world, have the best insider information and still lose money if you don’t know how to control the risk you put on a trade.
I can write a book on this topic so I will just mention the most important things about risk management.
It is very important not to risk a big portion of your account. I suggest up to 3% which is the maximum and suggested only those with smaller account sizes. I am using usually 1% on most of my trades and never above 2%.
Why this is so important?
If you risk 10% per trade, after 3 losing trades, you’ll lose 30% of your account. At that time, you’ll forget everything. You’ll forget your rules, everything. The only thing you’ll be focusing is getting back your money. Because of that, you’ll risk even more and you’ll be just 2-3 losing trades from blowing up your account.
3 losing trades can happen even to the best traders so this should be avoided at all costs.
The second thing I would like to talk about is consistency. There’s a worse thing than taking a high risk and that’s taking inconsistent risk per trade. Never take 5% risk on a trade than 1% than 3%, 7%, 2% and so on.
This will lead to disaster!
You are actually hoping to win when you risk more and you focus on the luck factor. Even with an 80% win rate, you can be in loss trading this way especially knowing that we tend to make more mistakes when we take higher risk.
These are two things you should work on. There’s no technical knowledge that can justify taking a high risk. Go step by step, this is a business, not a casino. You should protect your capital then focus on making more of it!