Ten Bitcoin Money Management Strategies Methods
Process below describes the process of formulating bitcoin money management and practical advices on formulating your own bitcoin trading money management system in Bitcoin Trading - account management.
1. Keep the Necessary reserve (over and above the broker margin requirement)
This reserve is needed for unusual situations & it should be not less than 50% of invested equity. It is the first rule of bitcoin trading account management in margin definition for opening orders. However, many experts and analysts advice more reserve of about 70%-90% of invested bitcoin account capital for safe operation in cryptocurrency trading.
2. Do not to invest more than 2%-6%
This is one of the principle that helps to avoid bankruptcy: never invest more that 2% on one market and do not to invest more than 6% in the total open trades.
Account Management Rules
This is not the same as above, the above is never invest more than 5% , this is never to lose more than 2% on a single trade. In this case a trader risks only lose small part of his trading equity with an unprofitable order.
4. Diversify
The use optimal investment of your funds is that you should diversify to some degree. Just In case one trade losses, the trade order can be covered by trading profits of another trade.
BTCUSD Account Management Rules
On a piece of paper or better still in your trading plan. If you open trade orders then this orders should be within your money management guidelines.
6. Define your stop loss and take profit levels
When you are trading put your stop cryptocurrency orders in order to avoid any huge losses or even bankruptcy. Profit taking levels will ensure you get additional profit by taking money out of the btcusd market. Analyze the situation and predict the future movement of price action and place orders accordingly. You can even use indicators & volatility of the price to know where to place these orders.
Bitcoin Account Management Rules
Consider only opening trades when you have the chance to get profit against loss ratio of 3:1. If you cannot do it then don't open the order.
Bitcoin trading money management should seek to bring maximum profit to the traders account, keeping profitable trade orders as long as possible is a good trading strategy. Therefore, if you make some profitable trade orders you can have goods results.
8. Try to follow the rules of opening & closing the orders specified in your plan.
That way you will get consistent trading results required for making profits in the bitcoin market.
9. Do not revenge against the btcusd trading market
In this case, you will not be analyzing the situation but you'll just be trading based on emotions and you will lose more money.
10. Timely rest
Do not trade when you're exhausted, no matter how tempting the situation may seem, you might not get the profits that you can if you were to trade based on your bitcoin trading schedule.
Considering these - Account Management Rules and Guidelines can make you trade profitably. Try to develop your own money management strategy that gives you good profits.
