I am going to share an excellent technique in this post that can help many traders earn great profits. Read this post carefully; it is short but contains a powerful technique.
As we see, many new coins are launched daily. After a new coin is launched, its price often pumps significantly but then drops within a few hours due to correction or quick selling.
You need to focus on this technique: whenever a new coin launches and its price corrects (meaning it drops below half of the first candle), you should trade this coin in spot using the DCA (Dollar Cost Averaging) method.
Since the coin has already dropped, there’s a chance it will rise again. We will place DCA orders for this coin, going down to 20% below our initial amount.
If the coin continues to fall, your orders will keep buying more. However, if it keeps dropping further, you should set a stop-loss 5% below your last buying point.
Because the coin is volatile, the chances of it rising are much higher than falling further. While setting up DCA, make sure your initial buying amount is small, and configure the bot to double the amount for every subsequent buy.
This way, your buying average will go much lower, and in case the stop-loss is hit, your loss will be minimal.
At the same time, set your Take Profit (TP) at 5%. This means that when the price goes up by 5%, your selling will happen automatically. These fast and volatile coins can give you profit quickly.
This is a simple technique, and you can try it with a small amount to gain experience and improve over time.
THANK YOU!
