Pseudonymous crypto analyst Kara Szabo recently shared her valuable insights on crypto trading on social media platform X (formerly known as Twitter).
Here are her 12 tips:
- Independent Decision-Making: Kara emphasizes the importance of not relying on others for crypto advice. She asserts that her tips are all one needs, advocating for self-reliance in decision-making in the crypto market.
- Swing Trading and Profit Taking: According to Kara, one should never be fully invested during a market upswing. She advises keeping cash on hand to buy dips, a strategy known as swing trading. Taking profits regularly is crucial, yet often overlooked.
- Investing in High Market Cap Alts: Kara recommends focusing the majority of one’s portfolio on high market cap altcoins and advises caution with decentralized exchange (DEX) coins, suggesting a limit of 10% investment in them due to the high prevalence of scams.
- Exiting Trades in Green: She advises exiting every trade with a profit, no matter how small. Kara shares her own experience of over 700 trades in 2023, with only one in the red, to illustrate the feasibility of this approach, especially with high market-cap altcoins.
- Avoiding Day Trading and Technical Analysis (TA): Kara warns against day trading and learning TA from online sources, labeling it largely as pseudoscience. She argues that if TA were effective, market manipulations would have already exploited it.
- Guarding Your Money: She strongly advises against paying for market tips or joining paid groups, emphasizing the importance of safeguarding one’s funds and not lending money under any circumstances.
- Avoiding Purchases at ATH: Kara suggests not buying coins at their all-time high (ATH) or after they have already seen significant pumps. She recommends buying after at least a 5% decrease, emphasizing the importance of buying during a downturn.
- Ignoring Others’ Coin Performance: She advises traders to focus on their own portfolios and not get swayed by others’ performances or claims, as they might be misleading.
- Using Stop Loss Wisely: Kara recommends using a stop loss only in profit, adjusting it as the coin’s value increases, and avoiding setting a stop loss in the red, as it signifies gambling rather than strategic investing.
- Not Dwelling on Missed Gains: She stresses the importance of not fixating on potential gains one could have made. Exiting a trade in profit is a win, and looking back can lead to unnecessary risks and reduced overall profits.
- DCA in Entry and Exit: Kara advocates for dollar-cost averaging (DCA) into positions and using DCA via stop loss to exit trades. This strategy ensures consistent profits and exiting trades in green.
- Diversification: Finally, she underscores the importance of diversifying assets to mitigate risk. This includes not going all-in on a single coin and spreading funds across different exchanges and wallets.
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