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04. Tips Uncategorized

Be Strict With Profit Targets and Stop-Loss Orders

As mentioned, bitcoin is unpredictably volatile, more so than any other financial instrument, so it’s vital to have a plan and stick to it.

Before opening a position, consider what level of profit you would be happy to take from the trade, what losses you can afford to shoulder, and set your target and stop-loss levels right from the start.

This is one of the most important tips, as without a disciplined approach it’s all too easy to expose yourself to potentially devastating movement.

Many beginner traders fall victim to greed, holding on to a position for further profit only to see prices plummet, whilst others optimistically convince themselves that a downward trend will reverse as they fall deeper into the loss zone.

By being strict with your profit targets and stop-loss orders, you can easily avoid this pitfall and minimise risk.

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