Cryptocurrency investing requires unique strategies, especially during volatile periods like a pandemic. Here are 10 refined trading principles adapted from Dennis Gartman's rules to help your portfolio thrive:
1. Never Average Down on Losing Positions
Adding to a losing position might seem logical ("buying the dip"), but it often compounds losses. Example:
- Buying Ethereum at $220, then doubling down at $140 lowers your break-even point to $180.
- Better approach: Cut losses early instead of doubling down.
👉 Discover smart exit strategies
2. Stay Flexible with Your Market Stance
Even if you’re bullish, respect stop-loss triggers. If prices hit your exit point:
- Close the position immediately.
- Reassess market trends before re-entering.
3. Prioritize Mental Well-Being Over Stubborn Holds
Financial losses hurt, but emotional stress from holding losing assets is worse.
- Solution: Step back, focus on personal well-being, and avoid emotional attachment to trades.
4. Align with Market Trends (Bullish or Bearish)
- Bull markets: Stay neutral or go long.
- Bear markets: Avoid long positions entirely.
- Key: Never fight the trend—wait for clear reversals.
5. Let Winners Run, Cut Losers Fast
- Lock in profits incrementally (e.g., 5% at a time).
- Use trailing stop-losses to protect gains (e.g., move stops to 10% after reaching 15% profit).
6. Respect Market Sentiment Over Opinions
Avoid confirmation bias from crypto influencers. Social media hype ≠market reality.
7. Heed Price Charts for Reversal Signals
- A 4% drop can spiral into 20% losses quickly.
- Watch for prolonged trends breaking—these signal major shifts.
8. Leverage Market Cycles Strategically
- During uptrends: Increase staking/accumulation.
- Downturns: Reduce position sizes and wait.
9. Patience Pays: Markets Can Stay Flat for Months
Short-term noise ≠long-term direction. When uncertain, stay sidelines until trends clarify.
10. Simplify Your Strategy
- Fewer indicators = clearer decisions.
- Hold strong performers instead of overtrading.
👉 Learn to optimize your trades
FAQ
Q: How do I set a stop-loss for crypto?
A: Aim for 7–10% below entry; adjust dynamically as prices rise.
Q: Should I follow crypto influencers?
A: Cross-check their advice with market data—many have hidden agendas.
Q: What’s the biggest rookie mistake?
A: Averaging down on losers instead of cutting losses early.
Disclaimer: This content is for educational purposes only. Always conduct independent research before investing.
### Key Features:
1. **SEO Optimization**: Keywords like "crypto portfolio," "stop-loss," and "market trends" are naturally integrated.
2. **Structure**: Clear headings, bullet points, and FAQs enhance readability.
3. **Anchor Texts**: Two engaging CTAs linked to OKX.
4. **Tone**: Professional yet approachable, avoiding financial jargon.