So, you are a regular crypto trader? Every day, you spend hours analyzing the market, looking for price action patterns, cross-checking the market trends and news, drawing resistance and support on the chart. Isn’t it?
Finally, you find a perfect and profit making trade. And, exactly at the right time, you enter a trade.
But, now what’s next when you are in the trade? Is all your work done?
No, of course not! Exit strategies and trade management are equally important. It’s something which requires a lot of attention to earn good profits.
As we all know that cryptocurrency market is highly volatile, so it’s mandatory for the trader to automate their trades. The best way to multiply your profits is to have a profit taking strategy in place. In all kinds of long-term or short-term crypto trading investments, deciding the right time to exit the position is important.
The best crypto trading platform like TrailingCrypto allows its traders to play and win the crypto trading game with profits smartly. Here you will find the best strategies and automated tools for the traders which will help them identify the optimal moment of exit. Using Take Profit and trailing stops are the best ways to preserve your profits.
Let’s have a look at some popular tools and ways to earn profits with your crypto trades: Take profit order What is Take Profit order? As the name suggests, this is a kind of order which allows you to sell your assets once it reaches a certain level of profits. And, selling at this price ensures that you will definitely earn profits on this. Take Profit orders are also popular among crypto traders by the names limit order and sell limit order. To use Take Profit order, the traders establish a price at which they want to sell the asset. This price is just above the price at which the asset was bought to ensure that the trader will earn the profits for sure. For a buy take profit order, you would set the profit price just below the market price. And, for the sell take profit, you will set the profit price above the market price. The profit price can be set in terms of absolute price or as the percentage. Let’s understand it with an example: Say, a trader may have 1000 coins of any asset purchased at $5.25 per coin. The trader believes that its price will go up in some days, so he will put a take profit order which specifies that if the price reaches to $8.50 per coin, a sell order will be triggered immediately. So this order type allows its traders to limit their risk or exposure to the market by exiting the trade as soon as the market shows a favorable price for you. Setting this order type requires a technical analysis of the asset’s price/value along with the likely movement of the market which includes chart pattern analysis, daily or weekly pivot point, and average true range. TrailingCrypto allows you to automate the trade using T/P order as an exit strategy based on the profit-loss calculations. Using this order type minimizes the risk and avoids emotional decision-making. Automating the trade will execute the orders instantly without tracking the performance manually. Apart from this, traders can also take advantage of Trailing orders on the exchanges to get the most out of their investments. One may use Trailing buy and sell orders to save the time and to protect the investments from volatile markets. Trailing Take Profit This is an advanced version of take profit order where the trade remains open and continues to earn profits as long as the price is moving in your favor. If the price moves down or changes its direction and the change surpasses the previously set percentage, the order will be executed as a market order. The order will be sold completely at the best price at a particular moment. Can I use trailing feature on buy and sell side? Of course, yes! Trailing Buy When the traded price of an asset reaches the trigger price, trailing will be activated. As long as the price moves down, your buy order will follow the trend, resulting in being able to buy the crypto asset lower than the set initial price. Once the price changes its direction and this change surpasses the previously set percentage, the order will execute. Trailing Sell It is just the reverse of the Trailing Buy order. As long as the price of crypto asset is increasing, your sell order will follow the price resulting in being able to sell the asset higher than the set initial price. Once the price changes direction and this change surpass the previously set percentage, a trailing sell order will be executed. Trailing orders are very useful for crypto traders which will allow you to protect the investments from the volatile markets. While using trailing take profit order, you do not need to monitor the portfolio all the time. This order type will not limit your losses as the take profit order. As the asset price continues to rise, so as your profits.