A take-profit order is a limit order that ensures that a trading position is closed at a predetermined price or higher. When it comes to making a profit in cryptocurrency, there are many things to consider. There is nothing unusual about forty or even fifty percent rise in prices but it is more decent to take 1% profits in hundred trades than wait for 100% profit in one trade. There are several strategies worth considering. These include: keeping your eyes open to look for discrepancies; Pay attention to Fibonacci levels and watch for pivot points. In this post, you will be exposed to an app that helps you trade and take profit automatically – so that you don’t miss when to do so!
Cryptocurrency is a totally new form of exchange. To begin with, it does not exist in real life and is exchanged with other “cryptocurrencies” or “digital assets”. These are just computer programs on your computer which are not as hard to control as any of the traditional financial products like stocks, bonds or money. Its only value is its price. Nobody can own it, you cannot collect dividends from it or borrow against it. It is not good as an investment in real life. It is used for just paying each other in exchange for goods and services. It is not like any other currency in that regard. A lot of traders and investment bankers like me have discovered this new phenomenon. It is worth investing in it!
You need a strategy in place to reap maximum profit when the wall is breached. Take profit will allow you to take high-risk trades without any hesitation and at a greater profit. Safety first cryptocurrency is among the most volatile asset classes. High volatility makes trading even more difficult. The danger comes from the prices decreasing sharply when you reach the bottom. Therefore, ensure that your trading strategies have a safety layer. Always keep an eye on your amount and execute trades at the proper time. But there is an app that can do trading for you automatically – continue reading to know more about this app.
Take Profit Strategy and the Basics
There are several things you need to do to make a profit in cryptocurrency: Trade with stop-loss orders. Once a trade is made, you can immediately place stop-loss orders to ensure that your position will not be closed at a price lower than your initial sale. Place stop-loss orders of at least 4% below the current price. An additional 2% lower will improve your take-profit ratio. If your stop-loss order is taken, move on to another trade. If you still want to keep the position, sell some part of your holdings below your stop loss. Understand that the system is very unforgiving in terms of loss. It is advisable to look for areas of outperformance and leave positions alone until they do well. If a trade opportunity is presented, jump on it. Look for Fibonacci levels in the process.
Examples of Take Profit Strategies
Profit By Squeezing: There is an art in this strategy that is getting more popular than ever. You squeeze your order, close it above the asking price, open it below the bid price and open it at a reasonable offer, keeping your position open for a decent amount of time. Once you have gone through the buyback or sell-put processes, there is no point in leaving your position open but selling it after a little while. With this strategy, you are looking for opportunities to buy coins that are temporarily out of the reach of most investors. Sell all your coins by squeezing them from the sell-stop and close them before an acceleration in the price.
Fibonacci Levels and Pivot Points
In the Fibonacci series, we have the triangle and then an incremental line, with the initial side being 1,618 and the second side being 1,618 times the first. This gives us two distinctive triangles. The first of these will always be a long-term consolidation in the long term and will always be part of the base trend. If the price moves towards these levels, it’s your time to buy. The second is the most recent rally or bull market. The higher the price moves up from here, the more defined a trend will become. This level will be a pivot point that takes you out of the bearish consolidation. It will also take you closer to the target price of 1,618.
Create a Buffer for Your Take-Profit Order
If you are like most traders, the idea of taking a break from your position is out of the question. Consider using a larger buffer order that will allow you to exit the position after the end of the desired future trading range. A stop-loss will then be placed on a sell order which should be placed before the opposite side of your desired trading range so that you will be able to exit your position. You should be open to taking losses in your trades but at the same time, you need to be cautious. In case your profit-takers continue to press on, don’t rush into trading with the mistaken belief that you have made a killing.
There are several ways to start with cryptocurrency trading but one can only choose the one that suits his/her needs. There are many reports published in the media about volatile cryptocurrency trading and it is more prudent to prepare a prudent plan and buy/sell cryptocurrency with the strategy that best suits you. Alternatively, you can automate your trading process using a crypto trading app called Royal Q. This trading robot takes profits for you automatically even when you are asleep. Royal Q is traded on Binance (you need to set up an account thus). Click here to read more about Royal Q.