How to manage you cryptocurrency Budget and Portfolio
Do you know what the number one reason why people lose money while trading or investing in general?
It’s because they don’t know how to manage their budget properly, now don’t get me wrong you still need to know when to invest your money or when to enter a trade but even if you enter a perfect trade that goes your way you won’t know when to take your profit because you don’t have a system in place.
Let me give you an example, let’s say you buy coin X with 1 dollar and you buy 1000 coins for 1000$ which this is your entire budget if the trade goes 15% in the opposite direction the majority of people will cut their losses and why is that? It’s because that’s all they have and they can’t consolidate their position if price goes lower.But let’s have another example where I will be fully transparent I currently started a challenge where I told my discord members that I can turn 100$ in 10000$ now of course it will take time as I’m not a swing trader but let me tell you and also show you how to manage 100 dollars which can apply to ANY amount. Also keep in mind this is all done on futures on Binance.
I have taken 12 long positions and 1 on spot currently on 1x and each position has a maximum of 7$ in, exactly or almost the minimum necessary to enter the trade as shown below in the screenshot.Also a 12$ spot on ENS/USDT.
Now you will say what will 5$ bring you off a trade? Not much, but as soon as I think that there will be another opportunity for me to buy any of these coins I will buy again close to the same amount giving me a larger position with lower risk, as you can see I don’t have any stop loss currently in place that’s because I’m managing my budget I can afford to lose 100 dollars off 13 trades but I can’t afford to lose 100 dollars off 1 trade, makes sense?
Also keep in mind this is not financial advice but more to make you understand that it’s not about making money it’s about managing your budget same like you do in real life so you can stay above the water and not sink.
I will follow up on this post updating you guys with more cryptocurrency related articles, probably the only type that I’m gonna do.
If you are interested in learning more maybe you want to learn how to trade short/ long term I own over 100 courses from top traders stocks and cryptocurrency you can join down below on my discord server.
https://discord.gg/gassCzmcCw — limited to 100 spots. Small groups are always the best ones.
For any inquires mail cryptorobbz@gmail.com
