In our latest video blog post (see below), we check on our DCR / USDT trade and also set up a price alert for risk management.
Most crypto exchanges still do not offer Stop Loss orders, which are crucial tools for risk management.
When a trade doesn’t go your way, which will be often (let’s be real), you need to react quickly and cut your loses. Managing your trade size and loses are key to making money in the long term. Your trade size should be such that you’re not risking more than 2% of your portfolio per trade.
So if you can’t set a Stop Loss order, you should at least use a Price Alert to get notified when your trade breaks down.
Now, let’s look at our DCR / USDT trade. We bought it on 26.8.2020 at about $17.86 and now it’s indicating $17.53, so we’re losing a bit here. Since we placed the trade, the price broke through the trendline, which is concerning, but price remained above the prior lows of $16.20, so we’re keeping the trade for now. But we set up a Price Alert at $16.20. If it breaks this level, the trade is off.