Part 7: I’m All In….. Oooops shouldn’t have done that…
A very common mistake beginners will make is investing all of their money that they have to put in. I’m All In!!!! BIG MISTAKE. When finding a good entry point a good solid and safe bet is to go in 45%. Save the other 55% for other buy in points. Diversification is key to make it in a market like you see today.
I can speak to this first hand as I jumped in hard and fast. It was defintely a learning experience for me. The way it should work is lets say you find a healthy entry point put and you have $1,000 on this trade to invest. Put in $450 at your initial buy in point. If the coin drops in price you can then average it down buy buying more at the dip. If the opposite happens and we see an uptrend then you can also buy more. Your profits will be reduced but you have safely secured your position.
This strategy time after time has saved us from seeing trades go south. Remember profit is profit whether its $5 or $500.