Big profits are minimal risk.
Stop Loss showed where to place and by what principle they move because all the zombies want to see them.
Stop Loss takes place when you are not in control of a position for a long time. But you must clearly understand where you should go when the price goes against you, and no retention of a losing position, in case, "what if the price comes back."
Always adhere to your strategy and plan, but at the same time, be flexible and have all the scenarios in advance. Be smarter for other market participants.
Matic / btc pyramiding in profit figures now:
1 entry point for $ 1000 + 177% $ 2700 (net $ 1700).
2 entry point for $ 1000 + 135% $ 2350 (net $ 1350).
3 entry point for $ 1000 + 90% $ 1900 (net $ 900).
4 entry point for $ 1000 + 35% $ 1350 (net $ 350).
The total profit at the moment from 4 entry points with a minimum risk of $ 4000 becomes $ 8350 (net $ 4300).
There is one thing, but the profit is much larger, as the trade was conducted in the accumulation channel with a price step of + 77%. Trading was carried out by 30% of the accumulated position, increasing it with complex%.
Trading in the channel will allow you to advance to a specific profit before the channel breakthrough. It will also help minimize its risks in case the uptrend support of the accumulation channel is broken down. As you would already be in profit from trading in the channel in 77% increments, at least cover Stop Loss loss. It is clear that the movement of 77% of the channel will not come out each time, like the entrance and exit when confirming the price reversal from . But 30-40% can be obtained, but not always. This also needs to be understood.
Also no need to be afraid to buy at prices at a higher price. Sometimes buying at slightly higher prices is much safer than buying at the bottom, which may not be the bottom. The most important thing is the correct entry and exit point.
The entry point should be with a potential big profit and minimal risk.
What else does trading in the accumulation channel give you? You need to understand what could have been so (it is unlikely, but this should not be ruled out) that the would have broken down and fixed under it. If you were “Waiting” like everyone else, it would mean a losing trade. And a loss in the amount of your Stop Loss according to your strategy. And if you have a big position, but not a lot of liquidity in a coin? As a rule, such coins are so, then there are situations when a breakthrough of support creates a panic-drain in the market, which goes to a large percentage of the price movement. Here, in this case, the extra earned profit up to the input amount helps.
Another addition in such coins in most cases is not possible to become short, therefore trading in two directions will not work. This must be understood in advance and taken into account in your trading strategy!
It is also important that someone thinks that he would just enter the breakout zone of the downtrend and take the same + 100% without these games and complexity. This is so if you have a small input, let's say $ 500-1,000 is not a problem, but if the amount is larger, this will cause difficulties to enter not noticeably and not provoke a premature price increase. You need to understand that at important you are not the only ones who want to enter the market, and in some coins the liquidity is low. And an entry instead of a step of + 2-3% can provoke a price increase of 10%. You can just trigger a panic buy.
Another option, for example, you bought 50% of the coins for the planned amount. Further you see that a further purchase will provoke an increase in the price by an unacceptable%. You can use your purchase to keep the price from rising and force other market participants to sell you and thereby gain the remaining 50% of the planned position. This works if you know how to work with a glass and a ribbon of sales and purchases, well hiding the actions made in advance. After all, you need to understand that not only hamsters are on the market, and there are traders who not only look at charts, and therefore are more informative in what is actually happening.
But all this only works in ordinary situations. At important points in the price reversal, your walls will be eaten up, you will give someone a gift allowing them to buy a large position without slipping the price. Just ask yourself a question, and you wouldn’t do it if someone gave you such a gift?
It is easier to work on TOP coins with this management method due to the greater liquidity and greater predictability of the price movement, but the profit there is many times smaller and more time-stretched.
Time is money. The liquidity of TOP coins allows you to work in large amounts, and there will always be enough liquidity for a short Stop Loss, which can not be said about pump coins. It is worth mentioning that you can work short on top coins if the price goes against you, therefore there is less risk due to greater plasticity for the trading instrument. But once again I’ll remind you the profit is much less, a long extended time interval and a small selection of trading tools.
I showed in more detail about this method of money management on TOP coins using the example of LTC / USD in these trading ideas:
EDUCATION Pyramiding How to earn 52000 with a risk of 5% from 10000 1part
EDUCATION Pyramiding money management. 2 part. Short LTC/USD
The trading idea for this coin for 13 11 2019 is before pumping and leaving the accumulation zone.
MATIC at the breakout zone of the downtrend Great growth potent
+ 350% from the first entry point
+ 220% of the breakout point
The graphs at the peak show what kind of problem there is with liquidity, how a small position can trigger a partial drain by a large percentage.
Then there is already a high-risk trade, the principles of work I described in the educational trading idea.
Reset 30% of the total Stop Loss position under the support of the level of the last 3 goals.
A terrible dump for those who believe that you can earn money without working.
This is an example of how to trade safely on dangerous pumps and sell the position of coins at almost maximums and receive minimal losses, unlike the main market participants. At the same time, one should not even be interested in the fundamental legend of the project and FUD news. This will be left to smart people who believe in the air.
I showed the whole scheme of work, goals and movements in the trading idea and teaching in advance.
With such a trade, which I described in the training idea on the example of this coin, you are not even afraid of such terrible dumps during the pump. You always get maximum profit and minimum loss.
All that I did I showed in updates to the trading and educational idea. I accompanied the entire price movement from the beginning to the end.
What happened there? Probably before the new year, Santa Claus gave gifts to those who believed.) Faith is a terrible power; faith kills.
All 4 planned goals are taken.
70% of the total position was dropped almost at the maximum price, under 4 targets.
30% of the total position was reset by Stop Loss, supporting the level of the last 3 goals.
What will happen next with this coin, you should not be interested, you took a profit and left ...