Hey, Doug here—happy to pass along some fresh insights on how I survive crypto trading. I break down eight crucial steps to stay safer, reduce stress, and actually feel in control of each position you put on.
Let me give you a quick rundown!
1. Start Small & Add Once the Trend Proves You Right
We all know crypto prices can swing wildly. The essence of good position sizing is tiptoeing in, not diving headfirst. Open a tiny position at first, and only pile on more when the price action confirms your initial hunch. This way, if you’re wrong, you lose less and you are more likely to survive crypto trading in the long rune. If you’re right, you’re in a prime spot to ride that trend with increased size.
This is when you add on – don’t just dollar cost average like my grandfather in the 1980s.
Think of it like dipping your toes in ice-cold water. Once you confirm the temperature is okay, you go deeper. The pay-off? You avoid those gut-wrenching losses from going “all-in” too soon.
2. When Bitcoin Dominance Falls, Diversify
Ever notice how altcoins can suddenly surge while Bitcoin trades sideways? That’s usually a sign of dropping Bitcoin dominance—money is flowing into other coins. In those moments, pivot a slice of your portfolio toward a few promising altcoins.
- Scan for coins showing strong momentum.
- Rotate some capital from Bitcoin into these alts.
- Monitor your overall risk (always keep losses small!).
Diversification can be a game-changer if you’ve been 100% all-Bitcoin, all the time.
3. When Dominance Rises, Stick to Bitcoin
On the flip side, if Bitcoin starts gaining dominance again, it often signals broader uncertainty in the market. In that phase, Bitcoin tends to hold up best or even outperform smaller coins. If you notice altcoins dropping faster than BTC, consider tightening your portfolio back to Bitcoin.
One approach: keep your alt positions small or close them, and let Bitcoin anchor your strategy until the market signals a shift. This can preserve your capital and spare you the heartbreak of an altcoin crash.
4. Go to Cash if the 60/20 EMA Flips Bearish After a 1-2-3 Top
Markets can flip from bullish to bearish in a blink. A classic warning sign: a 1-2-3 top (where price forms a peak, pulls back, then rallies again but fails to break the initial peak) aligned with the 20-day moving average crossing below the 60-day.
- Translation: The trend just shifted negative, and you don’t want to be caught holding heavy bags.
- Practical Move: Convert to stablecoins or cash until the market stabilizes or starts a fresh bullish pattern.
Don’t let your ego keep you in a losing trade. Sitting in cash can be powerful—because sometimes the best trade is no trade.
5. Always Assume You’re Wrong Until Proven Right
This mindset saved me from countless large losses. Instead of jumping in convinced you’ll win, keep losses on a short leash. If the trade doesn’t behave as you expected—cut it.
Key benefits:
- Protects your account from major drawdowns.
- Calms the mental rollercoaster, since every position is measured and controlled.
- Frees you to re-enter later if the trend actually reasserts itself.
6. Add to Your Position Without Exception When Proven Correct
Now the fun part: if a trade moves in your favor and the chart structure supports it, don’t be shy—scale up. By adding to a winning position, you amplify gains when your probabilities are strongest. Just keep adjusting your stop-loss upward so a sudden drop won’t wipe out your accumulated profits.
It’s like focusing on success: the base is small, but as the few good coins climb, you add on position size without adding risk because your add on is protected by gains already secured.
7. Use a 15-Minute EMA Crossover Only When Daily Signals are Bullish (Sniper Extreme Bollinger Band)
Combining a higher timeframe (daily) “green light” with a lower timeframe (15-min) crossover can sharpen your entries. For instance, wait for the daily chart to confirm that overall momentum is heading up.
Then, on a 15-minute chart, look for a fast EMA to cross above a slower one, aligned with a Bollinger Band showing a potential upswing.
This multi-timeframe approach often keeps you from entering prematurely. You’re essentially stacking the deck in your favor by waiting for two signals to match up.
8. Consistency is the Magic Ingredient
That’s where everything ties together. Maintaining a consistent routine—small initial entries, strict stops, adding on confirmed breakouts—lets you sidestep the panic that plagues many traders. You become the disciplined pilot of your portfolio, not a nervous passenger.
Remember:
- Position sizing is about protecting your capital first and maximizing winners second.
- Avoid the emotional “double-down” on losers—focus on scaling into winners.
- Recognize when cash is your best position.
Copy My Trades
If you’re ready for a smoother, more logical approach to position sizing—one that helps you sleep better at night—I’ve got the full system waiting for you.
Picture yourself actually looking forward to the market open, rather than dreading big swings.
Go check out the complete details, start experimenting with these strategies on a small scale, and watch how it transforms your results. Enjoy the journey!