With the upcoming Bitcoin bull run, one rule stands out as a beacon of wisdom, yet it remains largely underrated. This rule, simple yet profound, is the key to ensuring you don’t lose out in the crypto market. It’s a rule that seasoned traders swear by, and it’s time we shed some light on it: ‘Take less size after big wins.’
Why is this rule so crucial? Let’s delve into it.
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Show more +The euphoria that follows a significant win in the crypto market is a double-edged sword. It’s a feeling of invincibility that can lead to reckless decisions. One such decision is to increase your position size, driven by the belief that the winning streak will continue. This is where many traders falter.
The problem with increasing your position size after a big win is that it exposes you to a higher risk. If the market takes a downturn, which is often the case given its unpredictable nature, you stand to lose all your profits. This is a common pitfall that many traders, especially those new to the game, fall into.
The solution? Maintain your position size or even consider reducing it after a big win. This approach ensures that even if the market takes an unexpected turn, your losses will be minimized, and your profits from the big win will remain largely intact.
In conclusion, the key to not losing out in the Bitcoin bull run, or any crypto market for that matter, is to resist the temptation to increase your position size after a big win. Remember, the goal is long-term profitability, and this requires a disciplined and calculated approach to trading.
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com
