Tips About Crypto Portfolio Manager From Expert Dennis Gartman

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Dennis Gartman started his career as a trader in the 1970s. His expertise and experience in the world of trading such as Forex, treasury, stocks, commodities and all their derivatives make him highly respected.

Not only that, for more than 30 years in the trading world, Gartman also often writes daily newsletters. Finally, this writing is used as a "trading rule" whose validity has been tested from time to time.

In fact, most of these Gartman rules work for any market. However, with volatility being high and being relatively new, there have been some adjustments regarding the cryptocurrency market

Never Add Capital in a Losing Position

Usually this step is done by novice traders, they aim to offset losses and to gain profits in any situation. However, according to Gartman, you should never increase the price in a position that has already lost.

This strategy will only reduce the break-even point to only 29%. Meanwhile, the percentage of profit that should be obtained is 57%.

Gartman also added that losing positions like this should be prevented, and not improved. So, plan the strategy you use before you start trading!

Do not be greedy

Another aspect of how to trade crypto is avoiding greed. Sometimes market conditions can swing in your favor so that you win most of the trades. Don't be greedy to think it's time to make a lot of money and use all the capital for the next cryptocurrency trading. Cryptocurrency market is the most dynamic market in the world that can change every second. When on a long losing streak, take a break and find out what caused the loss. Also, consider revising the trade amount to prevent running out of the entire portfolio on a losing streak.

Don't make 'blind' investments – use your crypto portfolio manager

Before putting money into a crypto asset, take the time to do a background check on the asset. Because, it was found that several types of altcoins were used as fraudulent tools and only lasted about two years. Performing a background check on the asset you wish to trade can help reduce the potential for losses from fraud and underperforming assets.

When an asset is in a very high price bubble stage, sometimes traders think the price could continue to rise, it's best to take some time to investigate why the asset's price suddenly increased or decreased sharply. Remember, your goal is not to make quick money by luck or chance.

Switch Sides, As Soon As Possible

It is not a matter of how reliable a person is in determining a trading theory, but how reliable the trader is to prevent losses from being experienced.

As a trader the ability to read the market must be very concerned. If the price of an asset continues to move down and reaches a stop loss, Gartman advises closing the position immediately. Then, pause and observe the market before deciding to re-enter the market.

If the market tends to go down uncontrollably, secure the asset by selling. This can minimize the losses that will be experienced. Again, early planning and risk management must still be applied.