Litecoin has gone from $100 per coin to almost $400 in five days. Ethereum has gone from $500 to almost $800 in three days. XMR has gone from $200 to $300 in the past week as well. Bitcoin’s continued strength has resulted in some crazy altcoin moves in the past week. We caught a huge move in LTC in multiple trades and we continued to trade it beyond $300:
These moves happen fast so you have to be ready at any moment to jump in before they rip. What exactly can you do to capitalize on this once in a lifetime opportunity?
Make A Watchlist of Cryptos To Watch Every Week
At least once a week, you should look through dozens of altcoin daily charts. You should make note of the ones that are near major breakout levels, or ones that have broken out and are consolidating in a tight range. If you’re going to be a serious cryptocurrency trader, you need to do your homework and come to the market prepared. Otherwise you may make impulsive decisions and get a bad entry because you weren’t familiar with the crypto that is running. This will allow you to know what cryptos will be in play that week, and you will know where to set alerts so you can be ready for the breakout.
Set Alerts at Key Daily Chart Levels And Use Hard Stops
Cryptocurrency markets are open 24/7, so no one wants to spend their whole day watching and waiting for a good entry. At the same time, you don’t want to miss out on a 100% move in Litecoin. Once you do your homework and know what cryptos may be in play that week, you can just set price alerts near key resistance levels of the cryptos on your watchlist. Once you enter your position, you can use hard stops to set limits for your exits, and you can carry on with your day. This will allow you to minimize the amount of time you spend watching cryptos everyday, but still allow you to capitalize on their huge moves.
Always Leave Coins For The Bigger Move
In order to capture a big move, you have to be extremely patient. With cryptos there’s always the possibility of the homerun trade. At the same time, they’re so volatile that it’s easy to turn a nice unrealized gain into a loss. It’s good to scale out of your positions in pieces, so you can have some gains locked in, just in case it does reverse and go against you. At the same time, you will always put yourself in a position to capitalize on a huge move.
In hindsight, it’s easy to say that you should’ve kept your whole position size for the 100% move Litecoin made a few days ago. However, it could’ve gone from 100 to 190, then completley reversed. If it did that, you would be very mad that you didn’t take any profits when you had such a large gain. This is why scaling is so important when you’re trading such volatile instruments like cryptocurrencies.?
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