Positionmanagement:
I keep hearing people say things like: โOh man, I was up this much on all of my positions, and now Iโm down even more than where I started.โ
If you canโt predict the future, then you should manage your positions as defensively as possible.
Many HTF levels have been hit lately, almost all of them reacted in some form, so there was a way to make money of these reactions, if you didn't that's on you.
Imagine being able to trade almost every level and still end up breakeven or slightly in profit most of the time.
How? Simple: Position management.
Spot or Low Lev:
For longer-term HTF trades with wider invalidation, I recommend playing in low leverage or even spot if youโre on the long side.
Build solid HTF ideas, give them room to breathe, and stay calm during volatility. But donโt forget to lock in gains, not necessarily at the first little MTF resistance, but around HTF key levels.
๐นScale in around the most optimal HTF level, when sentiment is bad, but still have an invalidation.
๐น Scale out around HTF key resistance, when sentiment is good. You can use a trailing TP for that.
๐นTrail your Stoploss to protect yourself from being wrong and paying back more than necessary.
No perfection needed here.
Rinse. Repeat.
These can be your easy money plays, if youโre not greedy and know how to read the "simpler" parts of the game.
You could have 10-15x your money by just buying BTC at the lows and selling it around the highs for 3 years straight.
Perp Trading:
For perp traders who are already a bit more advanced hereโs a solid way to start stacking consistent profits.
If youโre trading optimal or semi optimal levels, most of them will give you some kind of reaction. Itโs on you to take what the market gives, not hope and pray for more.
One of the easiest steps to consistently extract money from your levels:
๐น TP a bit on the first reaction or at least remove your risk.
Yes, youโll get stopped at BE a lot.
Yes, sometimes price runs in your direction right after and itโll sting.
But guess what?
You didnโt lose anything.
And if you took partials? You already extracted profit from the level.
Rinse. Repeat.
Now youโre in the best spot possible:
No risk. Multiple positions running. Profitable, risk-free, and ready to make more.
Get rid of the illusion that most of your trades will reach your final TP. Lock in early gains and remove the risk and you will see.
This strategy will help you become profitable, even if it's small in the beginning.
Youโll take a few small losses, a lot of breakeven trades, plenty of small wins, and occasionally: A big winner.
And guess what?
The winners pay for all the losers and more.