Maximize Your Crypto Profits💲: The Proven Strategy for Exploiting Market Extremes

Crypto market extremes might result in MASSIVE PROFITS. We may use the fact that markets swing to extremes and that we know how to gauge it to our advantage. Very few traders wait for that edge, and even fewer are prepared to take advantage of it in advance.

That is the subject of this post.

I’m sure you’ve heard the adage ‘reduce your losses, hold your winnings.’ While this will keep losses small, it overlooks a second aspect that every pro employs to capitalize on market extremes — for enormous gains.

The majority of your trading profits will come from transactions that take off immediately after you place them. That is why today’s post is so crucial.

As cryptocurrency traders, we want a higher return than most people would consider reasonable for any other investment.

Many crypto trading plans keep the trader in a position at all times, assuming that the market will either rise or fall. Perhaps you’ve been trading cryptocurrency in this manner, making 60% of the correct choices but still unable to expand your account regularly. Trying to predict every market move often leads to overtrading, second guessing, and a succession of tiny losses.

Without the approach we’ll go through today, trading isn’t even a 50/50 proposition.

You may win more often than you lose, but you will never recover much more than your loses.

It is natural to desire to make a profit to demonstrate that we are correct. Being correct does not guarantee the greatest amount of profit. It is critical for us to maintain a decent position while also impressing upon you the importance of having a correct position initially.

Perhaps you’ve entered trades and waited for the market to reveal you were in a terrible position. When your position is correct, the next question is when to leave. It’s human nature to behave in this manner. It is the root of many trading problems.

The moment to exit a trade is not when the market demonstrates that your position is accurate. You have the potential to be wrong as frequently as correct, but when you have already been proven correct, it is time to take a step back.

Our first risk control rule for cryptocurrency trading protects us from our lack of confidence, while our second risk control rule helps to impose certainty in those crypto market extremes that do prove true.

This is the second part of two special posts on risk management. If you haven’t previously done so, go back and read the post on Rule Number One.

You will never recoup much more than your losses unless you have a good approach to maintain you in your winning trades and to press your correct positions.

When your trade is successful, you should be larger at the time. This will necessitate a rule, a strategy centered on adding to winners in an unfavorable game in order to win in the long term. And here you have it:

Rule #2: Always squeeze your winnings correctly.

It may appear simple, but accuracy is essential. Most of the time, you will hear the phrase “cut your losses.” Cutting your losses is essential for survival, but if you want to generate money, you’ll need this pro method.

There will undoubtedly be discussion on how to recognize when to add to a proper position and how a market may change a correct position into an incorrect position.

At the end of the post, I’ll disclose our most essential add-on strategy, but first, let’s analyze this — and get a bird’s eye view of this Pro Tactic.

Every time, press your winners appropriately.

Just because you have a strong position does not imply you have to strengthen it. “Correctly” indicates that you must have a qualified plan for expanding your position after a trend has been established.

“Without exception,” the rule shows that the trader’s decision to add is not arbitrary. It is not an option. Keep in mind that a proper approach of incorporating one trading strategy may not be correct in another.

You may be a day trader who just trades back and forth, a short-term swing trader, or a trend trader. Each trade plan’s criteria for adding on will be different.

Most traders also want to get out before the market flips and wipes out their profits. We may allow losses to get worse because we want to be correct and hope the market will reverse… However, we may only let the gain to begin before taking those earnings… When these factors are combined, your losses will be more than necessary, and your earnings will be lower than they could have been.

Read our post on ‘the two faults that all traders make’.

Rule 2 just states that you must add to accurate (proved) positions and do so appropriately. The regulation offers no exceptions when it comes to adding to correct positions. Rule 2’s objective is twofold: Reinforce your right stance both emotionally and physically, and enhance the magnitude of your position.

The rule does not inform you how to add, which is a need in the trading plan you create.

Trend traders will start tiny and become larger when they are accurate, but day traders will start huge and shrink when they are incorrect.

These two guidelines are intended to provide you with the long-term capacity to trade with the least amount of drawdown and the greatest potential of making the most money in the long run.

A significant drawdown is the primary reason why several traders fail. You must begin your trading strategy with rules designed to safeguard your equity. I’m offering those rules for you to include into your strategy. Experience has shown that these criteria are essential for surviving and achieving your goal of producing the greatest money with the least amount of danger.

It’s easy to get caught up in the projections and possible rewards, and unwittingly put risk management on the back burner.

The last post focused on Rule Number One, the techniques that will keep you trading in the long run. This reduces risk at the outset of the transaction, but there are occasions when we wish to increase our exposure to a market when our position has been proven correct.

We must handle Rule 2 while developing the trading strategy and before placing the transaction.

It is a sound guideline, and its significance in trading cannot be overstated. It is difficult to grasp until you experience the payoff from Rule 2.

Unless you completely grasp the necessity for this rule, many traders will put a strategy to add to winners on the back burner when it is time to add.

Most traders, in my opinion, desire to have a specific size position, and that is the position they place from the start. This is not the right approach to apply Rule 1 and, more importantly, Rule 2. When you notice a predicted move from the outset of trade, your thought process is counter to ever adding in the first place.

True, you should be at least twice as big or larger when you’re right than when you’re wrong, but you must factor it into your trading strategy. You should never bet everything on the original position, otherwise you will be breaking the rule.

I urge the traders to consider two questions:

“Do you merely put a portion of your predicted position on from the start?

“Do you intend to make any more trades before your original trade?”

If you answered no to either of these questions, you must reconsider your trading strategy. It’s something I’ve stated before. If you can imagine it, you can achieve it. Perhaps the traders aren’t thinking it to begin with because it certainly is not expected thinking without the proper planning.

By implementing Rule 2 into your game plan from the beginning, you will eliminate the impulse to be proud when the market swings in your favor and collect profits to prove that you are correct. Traders enjoy being correct.

This is your adversary… the desire to be right. Your motive must be to perform the proper thing in trading by either strengthening or deleting your position if it does not seem to be accurate.

By being incorrect tiny, rather than right small, you will become the finest trader you can be! Keep it in mind right now. You are going to have to press your winners if you really consider yourself to have the ability to make a living or extra income from trading. Otherwise, you must accept that you are merely playing to break even.

You must recognize that you will not determine the magnitude of your market position. The crypto market will and must always be the market. Rule 2 will instruct you to implement a comprehensive plan before adopting the initial stance.

I can’t help you if you’re over-trading or under-margining. You must address this issue before you can hope to trade for large sums of money. You must always be able to enter with only a piece of your predicted position and double your size anywhere along the course of an expected move.

Rule 1 provides protection, but Rule 2 provides the most!

Now I’ll explain why Rule 2 is the most important safeguard of all. You had no idea what I was about to say.

You’ve all heard that you shouldn’t add to a loser’s pile! Rule 2 takes care of it right away by keeping you in a lower entrance position in the first place. You never have your whole position until you obtain the predicted move.

Why would I recommend that you have half of your overall position at entry?

Because trading is a loser’s game from the start, as you already knew from Rule 1. Now, according to Rule 2, you were never supposed to hold your beginning position upon entering a trade in order to trade it appropriately.

When traders declare they can’t justify adding to an existing position, they’re usually overtrading. Most traders do not consider the rationale for adding because they have their initial position on from the start. From the outset, this is their greatest danger.

In trading, it is never what you want. You must take some risks, but never at the expense of your maximum. That is exactly what they are doing if they cannot plan for added positions along the way.

Strategy for Extending Successful Trades.
Correctly adding to a proven position must be planned in such a way that a top-heavy trade is not built, as this will spoil a successful trade in a little reversal. Each addition to an existing position should be done in smaller and smaller increments.

Assume you had a $5000 trading account and wanted to invest 10%, or $500, in a certain deal. Put $500 down as your first position, another $300 down if your requirements are satisfied, and another $200 down if the position maintains the trend. This gives you twice the original position size when all three positions are in place. I practice using a 3:2:1 ratio in establishing a full position.

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