Crypto markets are volatile and there are macro events as well as asset specific events that can abruptly move the prices up and down.
Current bear market serves as a good reminder that the key to profitable trading is risk management and longevity.

You must stay in the game long enough to profit from up cycles and bull runs!!
If you blow up your portfolio with massive losses, you’ll never recover. We teach risk management in Lesson 9 of our Crypto Trading Course.

1) Stop Loss orders (read free e-book)
2) Position sizing (risk max 2% of portfolio per trade)
3) Do not use leverage
4) Reward to Risk Ratio (RRR) of at least 2:1
5) Emotional discipline (have a trading plan)
6) (optional) have a few short sells for hedging

Where to set Stop Loss levels?

Using Stop Loss orders is absolutely essential to prevent major losses in your trading portfolio.

In video 4 of Lesson 9, we explain three ways to set an appropriate Stop Loss levels:

1) Place a stop loss order just below the prior swing low.
2) Place a stop loss order below the nearest key level.
3) Use Reward-Risk-Ratio (RRR) of 2 to 1 to determine your Stop Loss (SL) level.

Here’s a free e-book explaining these three approaches.

You can also find stop loss levels in our trade setups in Technical Analysis section, especially for our “Hot” trades.

Use Short Selling to hedge your portfolio’s long positions.

That way, when the market tanks, your Short Sell trades generate profit, offsetting some of the losses on your Long trades.

Our Trade Setups and Chart Pattern always have several Short Sell trade ideas that can generate big gains when markets decline.

Another great idea is to join our VIP telegram channel for tips, trading ideas and advice from altFINS experts as well as other experienced traders.

Example: HYPE – been on our Short Sell trade setup since price broke below the 200-day Moving Average (200 SMA) and $40 key level. Good for a solid +25% profit on the way down.

If it breaks below $30 support, it’s likely to revisit $25 next, which is also Channel support trendline.