The next thing to do is find a trading strategy that works for you. Designing a sound trading system is hard, and it can take years to develop. But a tested trading strategy will ultimately prove invaluable.
I am an old school trader, so the idea of HODL’ing is a strategy doesn’t sit well with me. If you bought BTC at $600 or $6,000 and held out until you sold above $60,000, you can justify your HODL’ing stance. However, if you purchased BTC above $60,000, your risk is greatly magnified.
Managing risk is the prime ingredient of profitable investing, and its crucial new investors learn this.
Every trading strategy should have an entry-level, an objective and a level where you will cut your losses. In cryptocurrencies, which have so much volatility, finding a level to place a stop-loss order at is not easy, but without placing an order that will limit your losses, you can lose it all.
Always remember if you limit your losses on one trade, you will still be able to re-enter the market, either in the same product or in another product that might offer a better opportunity.
