The key to being a successful trader is money management. I have stuck with this rule and it has always helped me in the long run. Money management can help even when the market is against you.
I have been reading everywhere people calling for the bottom. I however do not care where the bottom is. I personally believe $4500 is the least we could go for bitcoin. Would we get there? i very much doubt.
Bitcoin is here to stay and the current price is not my focus. My price is on the target be it in 1 month or 20 months. I am better off placing my finances as i would get a better return in the long run.
An illustration with my current trade.
Lets Say i intended to invest $10,000
My current trade today has TP at $10,000 and SL at $4000.
I entered my orders as shown below:
A. $5800
B. $5220
C. $4648
D. $4046
SL at $4000
If price goes all the way to $4000, all my trades would be active and i would be stopped out and lose 20.35%/$2,035
If Price hits the following buy orders, my ROI on my $10,000 is as shown below:
A. 14.48% / $1,448
B. 32.79% / $3279
C. 67.29% / $6,729
D. 111.09% / $11,109
Please note, the above is based on my entire $10,000 vested on the trading exchange. Therefore, my returns should be based on my tied up capital even if all my orders are not hit.
I do not see any institution that will give me such returns above. Therefore, i am happily willing to risk $2,035
This is not trading advice. It is just used to illustrate the essence of money management.
I have been reading everywhere people calling for the bottom. I however do not care where the bottom is. I personally believe $4500 is the least we could go for bitcoin. Would we get there? i very much doubt.
Bitcoin is here to stay and the current price is not my focus. My price is on the target be it in 1 month or 20 months. I am better off placing my finances as i would get a better return in the long run.
An illustration with my current trade.
Lets Say i intended to invest $10,000
My current trade today has TP at $10,000 and SL at $4000.
I entered my orders as shown below:
A. $5800
B. $5220
C. $4648
D. $4046
SL at $4000
If price goes all the way to $4000, all my trades would be active and i would be stopped out and lose 20.35%/$2,035
If Price hits the following buy orders, my ROI on my $10,000 is as shown below:
A. 14.48% / $1,448
B. 32.79% / $3279
C. 67.29% / $6,729
D. 111.09% / $11,109
Please note, the above is based on my entire $10,000 vested on the trading exchange. Therefore, my returns should be based on my tied up capital even if all my orders are not hit.
I do not see any institution that will give me such returns above. Therefore, i am happily willing to risk $2,035
This is not trading advice. It is just used to illustrate the essence of money management.