Ten Bitcoin Trade Equity Management Strategies Methods
Process below describes the process of formulating btcusd trading money management and practical advice and tips on creating your own bitcoin trading money management system in Bitcoin - bitcoin account management.
1. Keep the Necessary reserve (over and above the crypto broker margin requirement)
This reserve is needed for unusual situations and it should be not less than 50% of invested equity. It is the first rule of bitcoin trading account management in margin definition for opening orders. However, many experts and analysts advice more reserve of about 70%-90% of invested bitcoin trading account capital for safe operation in cryptocurrency.
2. Don't to invest more than 2% - 6%
This is one of the principle that helps to avoid bankruptcy: never invest more that 2% on one market ==22==and don't to invest more than 6% in the total open positions.
Bitcoin Account Management Principles
This is not the same as above, the above is never invest more than 5 %, this is never to lose more than 2% on one trade position. In this case a trader risks only lose small part of his trading equity with an unprofitable order.
4. Diversify
The use of optimal investment of your funds is that you should diversify to some degree. Just In case one trade losses, the trade order can be covered by trading profits of another trade.
BTCUSD Account Management Principles
On a piece of paper or better still in your plan. If you open orders then these orders should be within your bitcoin equity management guidelines.
6. Define your stop loss & take profit order levels
When you're trading put your stop orders in order to avoid any huge losses. Profit taking levels will ensure you get extra/additional profit by taking money out of the btcusd trading market. ==22==AnalyzeInterpret the situation and predict the future movement of bitcoin price action and place trade orders accordingly. You can even use indicators & volatility of the bitcoin price to know where to place these orders.
BTCUSD Account Management Rules
Consider only opening trade positions when you've got the chance to get profit against loss ratio of 3:1. If you can't do it then don't open the order.
Bitcoin trading money management should seek to bring maximum profit to the bitcoin traders account, keeping profitable trade orders as long as possible is a good trading strategy. Hence, if you make some profitable orders you can have goods results.
8. Try to follow the trading rules of opening & closing the crypto orders specified on your plan.
That way you will get consistent trading results required for making profits in the btcusd market.
9. Do not revenge against the btcusd market
In this case, you'll not be analyzing the situation but you'll just be trading based on emotions & you'll lose more money.
10. Timely rest
Do not trade when you're exhausted, no matter how tempting the situation might seem, you might not get the profits that you can if you were to trade based on your bitcoin trading schedule.
Considering these - Bitcoin Account Management Rules and Guidelines can make you trade profitably. Try to develop your own bitcoin money management strategy that provides you with good trading profits.
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