One of the ways crypto traders make money from the market is by shorting coins when they are newly listed. This is because some coins die within the first few minutes. It could be the work of the developers behind the project, lack of community support, or if it's a scam coin. Knowing how and when to short these coins will not only make you profitable but also make you a better trader.
Here are 5 tips every trader should know:
Use Smaller Leverage (between 1-7x): A newly listed coin might pump before it dumps, so using smaller leverage will prevent you from getting liquidated easily.
Look For Good Entries: Understand when to buy or sell. Either ride the pump for a while or look for the best entry to short because it will likely dump. It’s all about patience.
Manage Your Risk: Use stop losses and trade only with what you can afford to lose. Also, risk 1-2% of your capital per trade if you have a big account, and 5-10% if you have a small account.
Adjust The Stop Loss And Allow The Market To Ride: One reason people get taken out of trades is tight stop losses. Imagine being stopped out, then the market moves in your favor. Adjusting your stop loss can prevent this if the market retraces.
Break Even And Take Partial Profits: Always take partial profits and move your stop loss to break even to trade risk-free. Don’t make the mistake of taking screenshots instead of profits. TAKE PROFITS!
All screenshots are mine.