[Day 2] 7 Things To Consider When Trading -- #2. Money Management
Now would be a great time to learn trading strategies and techniques while the market is trading sideways and not much is happening. Soon we will see the next bull run which will at least double the current market cap. It would be very beneficial if you took this learn to learn from a professional trader. I decided to go over 1 of my 7 Things To Consider When Trading every day this week. I know your attention is valuable so I want to keep things short.
For today's tip, I want to discuss money management because this is a crucial factor in becoming a successful trader.
Table of Contents:
- There is no shortcut to becoming rich
- Money Management
- Trading should be treated as business
- Capital is the key
- Protect your trading capital
- Continuous learning
- Keep going
Money management plays a crucial role in improving your chance to increase your overall portfolio. Next, I will share my personal allocation of funds, you do not have to follow this. I allocate 60% for trading and 40% for long-term BTC holding. That 40% BTC is stored offline on a hard wallet. It’s hard to tell which altcoins will be relevant in the next 3-5 years. I suspect most current altcoins will be overtaken by newer and more exciting tech so that’s why I avoid holding an altcoin for long term (over 3 years I consider long-term). Next, with that 60% left for trading I split that in half. 30% I trade BTC pairs, Example: BTC-NEO, BTC-OMG, BTC-LTC. and the other 30% I trade USDT pairs, Example: USDT-BTC, USDT-ADA, USDT-LTC.
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