How I made $1300 profit from just $130 in 3 months Trading Crypto
For anyone who has been in Crypto space for sometime knows , making 10x in crypto is not very unusual . Having a good strategy and patience can pay really well in crypto . I have learnt it first hand , and using this experience of almost 5 years , I was able to adapt to a strategy that paid me well for the time it did. Following are some of the “rules” that helped me achieve this .
1. Control over emotions / Not getting too excited->
Years and years of experience in trading helped in this , i.e. not to get emotions involved in the market . I knew when to close the trade , knew when to open the trade and I abided by it . I had a STOP LOSS . Also I had a plan of my own rather than just entering market based on emotions whenever there is movement .
No matter how well one coin is performing , If it’s time to get out , I got out , instead of watching it further go up or down . Always had a bracket trade (with target) and never an open-ended position . If we depend/wait on market for too long , it can take a turn quickly which is not in our favour (what are the chances ? 50–50 😏).
2. Limit Daily Number of Trades / DO NOT Overtrade
This one goes hand in hand with the first one . One of the major strategies in making consistent profits was knowing when to stop trading for the day. Having a limit daily , after a certain profit , stop trading .
There will come days when -> you take multiple trades , all in your favour , you feel like It’s your lucky day . What happens next ? You take few other trades trying to make your day even bigger , but as It turns out , slowly you lose all profit you just earned that day , and then to get it back , you lose even more . CAUTION -> Remember point#1 .
Hence , Keep a daily limit on your trades and profit earned . You’ll be surprised to see how rewarding consistency and patience can be even with small profits .
I used to trade around 3–4 positions making ($3 to $4 each) , and my daily target was to get a profit of $13 (10% return) . I know this does not seem like a huge amount of money but with consistency everyday , that made upto $400/month , which wasn’t bad for me based on the money I invested .
3. Margin Trading (upto 5x Leverage)
I used Margin trading for multiplying my profits . Once you are set on your signal , taking margin from the exchange can come handy , I limited my leverage upto 5x .So I picked coins with leverage 3x , 4x , 5x and traded them.
(It is very important to keep the leverage low , I earlier had experience in trading with 20x , 10x leverage on BitMex (which comes with greater risk of liquidating your positions) and the results were quite obvious , losses most of the times). Hence , I knew , to keep it steady and not too risky , I had to tune down the leverage .
4. Take out profits periodically
I did this almost DAILY, I converted my profits to fiat .
One could argue if I did not withdraw at all , I could have compounded my profits and earned profits on top of that 🤑 , which is true . But that wasn’t my strategy , I wanted a consistent system .
Also Psychologically , when your money grows , the emotions start to kick-in, probably that’s why I didn’t go in that direction . Gaining a high Reward comes with a major Risk of losing high as well. So I was happy keeping the numbers low as of now.
So , this was my story of how via margin trading on CoinDCX , I was able to generate more than 10x in mere 3 months with a very small investment using consistent small profits .
These rules are rather lessons that I’ve learned as a trader, which you may already relate to a few of them , helped me improve my mindset for trading. You can share your lessons as a trader as well in the comments :)
If you feel you can gain something from my experience above , do share with your peers and feel free to support me ->
