Every good trader knows you don’t put all your eggs in one basket or one large position. One disastrous trade and all your trading capital is wiped out. Then you may have to start from the minimum amount you can afford or just quit because it’s unnerving to get rekt.
To manage risk, some traders spread their capital into several assets, it’s kind of basically investing in the industry — the altcoin markets, that is.
It’s a good strategy, but really time-consuming to monitor all your altcoin bagholds.
I, however, just focus on one or two cryptocurrencies to trade and just use adequate position sizing depending on the situation, the information available and of course, the strength of the hype.
My style is a modified martingale betting system where in a series of bad trades you increase your position size. Of course, you should never use this if you have zero knowledge of technical analysis.
I have been using this system for more than a year with some form of gambling and I have never lose a single gambling session. (Well, maybe someday I will lose all, lol).
Anyway, this system is a perfect supplement if you’re a TA wizard, it will protect your capital. Yes, it looks like it’s designed for small wins, but it will ensure you’ll enjoy a long trading career as opposed to those rich-overnight-but-lost-all-the-next-day, extreme risk takers.
You may download here.
Reminder: let your winners run and cut your losses early