Post
Topic
Board Trading Discussion
Re: Investing and Trading Strategies.
by
wxa7115
on 13/02/2021, 22:00:39 UTC
I guess there's many ways to do this. Let's say you invest £500. Your goal is to 10x you investments and happily pull out.
You invest in 5 coins. £100 each.

You track your investments and see that on your £500, you now are overall 100% up and see you have made £500, so £1000 in total.

Would you pull out £500 or would you leave it all in to grow to your 10x?

Any strategies here I can get to know?
This depends entirely on what kind of strategy you are using to exit the market when you are in profits, there are many traders that prefer to use a ratio when it comes to making those decisions, one of the most common is in fact a 2 to 1 ratio, this basically means that if you invest 100 dollars in a coin the moment you reach 200 dollars then you must sell.

Now there are many people that do not really believe in on using ratios in that way and there are arguments for it and against it so I will let you decide which is the best strategy for you in the system that you have implemented already, however if you use that strategy in the example that you are bringing then as soon as you reach 1000 dollars in profits then you must sell.