🛡️ Tactics: The 3 Rules of Success in Altcoins
1. Divide Your Capital Gradually (DCA & Scaling In)
Mistake: Investing all the money at once, i.e., at the same point (usually at the peak).
Correct Tactic: Dollar Cost Averaging (DCA). Enter the market by buying your chosen coins at different price points gradually. This lowers your average price and helps manage your risk.
For example: 1000$ invest $300, $300, entering the market at different prices of 400$ .
2. Manage the Risk/Reward Ratio (R:R)
Professional Approach: The potential amount you will gain (Reward) should be at least 3 times the amount you will lose (Risk)
(For example, 1:3 R:R).
Determine the Loss: When entering the market, clearly define your Stop-Loss (SL) level. Pre-determining the amount you do not wish to lose prevents large losses. Never trade without an SL.
3. Realize Profit Gradually
(Take Profit)
Mistake: Losing all profits back while waiting for the coin to go 10X.
Correct Tactic: When the coin reaches a certain target (For example, 50% or 100% increase), take back a portion of the initial investment amount
(25%-50%). This creates a risk-free situation since the remaining trades are no longer your money.
