Here are tips on trading cryptocurrency dari Dennis Gartner needs you to know. Dennis Gartner started a career as a trader in the 1970s. His expertise and experience in the trading world such as Forex, treasury, stocks, commuditas, and all its derivatives earned him great respect. Not only that, for more than 30 years dabbling in the trading world, Gartman also frequently wrote down daily bulletins.
Finally this writing is made into a “trading rule” that has been tested for its validity over time. Actually, most of these Gartner rules work for any market. However, with high volatility and disappearance still new, there are some adjustments related to the crypto currency market.
Let’s check out Gartm’s cryptocurrency trading tips
Never Add Capital to a Defeated Position
Typically this step is performed by a beginner trader, they aim to compensate for losses and to gain profits under any circumstances. However, according to Gartner, never to increase the price in a position that has already lost.
For example, an investor initially buys Ethereum (ETH) at a price of Rp3,000,000 and down to Rp2,100,000. Then, he bought again ETH and produced an average price of Rp2,700,000. This strategy will only reduce the break-even point to just 29%. Whereas, the percentage of profits that should have been earned was 57%.
Gartner also added a losing position like this should have been prevented, and not improved. So plan the strategy you use before starting the trading yes!
Changing Sides, As Fast as Possible
It’s not a matter of how handal someone in determining a trading theory, but how reliable a trader is to prevent losses being experienced.
As a kemampua tradern reading the market should be very attentive. If the price of an asset continues to move down and reach a stop loss, Gartman advises to close post immediatelycontents. Then, pause and observe the market before deciding to re-enter the market.
If the market tends to go down nok under control, secure assets by selling. This can minimize the loss to be experienced. Again, initial planning and risk management harus remain applied.
Losses Are OK, But Mentally Must Be Strong!
Incur losses in trading it menyakit, especially if it turns out that such losses could be prevented. According to Gartner, defeat and loss in trading is a learning. He recommends that if the trader suffers a loss, it is recommended to take a short break to re-restore the selection.
In the world of trading, every trader fitsIt’s a failure even if it’s only once. Therefore, emotional management is also necessary to prevent further drowsiness.
Not to mention high volatility on Bitcoin and crypto currency, could multiply the state in just a few minutes even seconds only. that demand will be experienced. Again, initial planning and risk management should remain implemented.
If the Market is Bullish, Place a Neutral or Long Term Position
The best strategy according to Gartner is to re-evaluate the tren the market. If the trader ever suffers a defeat, as much as possible not to go against the current market trend.
The example graph above shows the uptrend alias bullish market. Gartner advises, if market conditions like this are better to put up a neutral position or buy with long-term goals.
If purchasing when market conditions are like this, be sure to tetap uses stop-loss to prevent a sudden turnaround of market circumstances.
If Win, Stay Calm; If Lose, Exit Soon
A good investor according to Gartman, must be dap…at controlling and controlling the emotions it has. If the trend is positive and the market is bullish, then the trader benefits from it, be sure to stay calm. Conversely, if the trader loses, be sure to immediately exit the fitted position.
Set the amount of profit one wants to earn on the beginning of strategy determination. The move is to prevent unintended losses from occurring and also prevent greed from appearing suddenly.
For example, the trader put up a position and already gotkan gain 10%, but the amount of gain desired to be obtained is not determined in the beginning, high volatility could have made the state turn around. The 10% profit could immediately fall to 5% and be stable in that figure. Gratman also suggested setting a stop-order, so that the profit would be sufficienth obtained can be locked and not lost.
Consider Strong Market Trends
Sometimes when market circumstances are sedang bullish, traders are not aware that there could be a strong correction or decline in some time after bullish occurs. Therefore, according to Gartner, consider everything including existing market sentiment and trends.
He also added not to addtry to go against the strong current of the market. Plus, make sure to trade without coercion or just FOMO (Fear of Missing Out). Includes, re-analyzes expert sayings and reliable analysts of crypto.
It’s remembering, though experts and aThese realists have long dabbled in the world trading crypto currency, making sure if their views on market circumstances are not in the opposite direction. If possible learn fundamental and technical things in this crypto space.
Consider Large Candle in Graph
If prices in the market slowly rise, keepi suddenly had a significant downward candle, so it is best to revise this position immediately. This price reversal, it could have only started with a 4% drop, but if not careful it could have been in just a few hours or even minutes it could have reached 20% or more.
This also applies to the opposite. Be sure to use always stop-loss, stop-order, and also your risk management in any case. Again, this is to prevent unwanted losses.
Waiting for market circumstances to become more tenuousang would be the best path, compared to entering the market when its volatility is being high. Sideways circumstances of weeks or months will usually bring up unexpected corrections or price reversals.
Cycles on Crypto Currency Markets
When investors interpret pa trendssar well and correctly, even when bad trading occurs though, it can make a positive result. When this happens, then use the right time to increase or augment the existing open position. If prices move down, however, try to slow them down and make even smaller positions.
Patience! Sideways Trends Can Last Long
Keep in mind, short-term trends dapat is different from the trend with longer periods of time. The tendency often missed by inexperienced traders is to look at the circumstances of markets that have no clear direction. If in doubt, pause for a moment. Wait for confirmation of upcoming trends and then start building positions.
Use a Simple Strategy
Much better when juicingadi traders who are successful in some currencies than at just sitting on observing price movements through the use of dozens of indicators. The fewer variables, the easier it is in decision-making.
If the cryptocurrency is Anda follow jump 15% and the following day 20%, or even bull keep going up to 300% and present relevant and as desired drawdown, be patient first. Fear not and adjust stop-loss position as soon as possiblen at the next top-level and wait.
Usually trading ones paling profitable will last for days or weeks, then there is no need to rush in melting it. Monitoring price movements continuously is also not good, it tends to make investors follow suitkan overtrade for haste in decision-making or fear of loss.