Importance of DCA, SL and TP

in LeoFinance4 years ago

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Looking at the 1 year chart with some of my favorite coins like $cel, $eth, $btc, we can see that we are still at a profit if we DCA buying up the coins throughout the year. While we are at certain percentage of profit, we can practice Take Profit and convert the profit into stablecoins. That allows us to have more liquidity reserve to play with when we are in need of fiat or buying up the dip. Sadly, I’m still not good in taking out large profit but only 2-5% of it. Guess I need to my game when it comes to taking profit.

On the other hand, stop loss is still something I have yet to use well. For me, if the loss is immense like 80% or more, I will just leave it there and let it sitting idle until appreciation is back. However, stop loss may mean by when I suffer loss of certain percentage like 20%. We will need to liquidate the coin and jump to another pair to ride on the pump so that we can earn back the loss. That will involved using the OCO feature on trading and I’m still familiarizing myself on such mechanism.

Thinking back since I started exploring into cryptocurrency was 2017 August when I started on Steemit and earning $Steem while creating contents. Up until now, it has been like 4 years I have been in the game. Yet, I think I learned more about trading when I moved in serious money on 2020 and started to experience different crazy gains and loss. From then on, I started to take investing a serious matter, creating systematic tracking system and structured research on what to be in. Such a practice is good to provide more clarity for myself in future venture into more projects.

Again, this is a lifelong training to learn how to spot trend, find best price investment when it is early, taking profit and most importantly balancing portfolio and risk. I do think this is just the beginning of my journey and hope to continue such a fun and adventurous journey. Having this written down on a blockchain also makes my statement traceable for myself to read after a decade or so too! Let’s see how this will evolve and looking forward to build my wealth, achieving financial freedom.