If you’ve ever wondered why your portfolio swings between profits and painful losses — this article is for you.
Today, I’ll guide you on how to protect your portfolio from huge drawdowns, define which trading strategy fits your lifestyle, and most importantly… when to take profit.
Trading isn’t about luck, it’s about strategy. And the sooner you understand which approach suits you, the faster you’ll stop bleeding and start compounding.
What Are the Trading Strategies?
Many beginners think there are hundreds of ways to trade crypto. The truth? There are only three core strategies and every other style is just a variation of these:
- Scalping
- Day Trading
- Long-Term Holding (HODLing)
Let’s break them down one by one 👇
1. Scalping
Scalping means entering and exiting trades quickly — sometimes within minutes. You look for tiny market moves and repeat them many times.
- ⏱ Duration: 1–30 minutes
- 💰 Expected profit: 0.2%–1% per trade
- 🛑 Stop loss: 0.3%–0.8%
This strategy requires full focus, fast reactions, and chart experience. It’s high-risk, high-speed, not ideal for beginners.
2. Day Trading
Day trading is slower — you open and close trades within the same day. It’s more about catching intraday moves, news reactions, or breakouts.
- ⏱ Duration: A few hours to one full day
- 💰 Expected profit: 1%–3% per trade
- 🛑 Stop loss: 1%–2%
You’ll need time to monitor charts and emotions, but it’s a good learning ground before you move to swing or position trading.
3. Long-Term Holding (HODLing)
This is the strategy most investors eventually settle on. You buy solid coins (BTC, ETH, BNB, etc.) and hold for months or even years.
- ⏱ Duration: Weeks to years
- 💰 Expected profit: 30%–300%+ depending on cycles
- 🛑 Stop loss: Not always used — focus on fundamentals and DCA
How to Combine the Three (Beginner’s Formula)
If you’re starting out, don’t go all-in on one strategy. Here’s a balanced approach that keeps you safe while you learn:
| Strategy | Allocation | Time Commitment | Risk Level |
|---|---|---|---|
| HODLing (DCA) | 40%–60% | Low | Low |
| Swing/Day Trading | 20%–30% | Medium | Medium |
| Scalping or High-Volatility Trades | Max 20% | High | High |
Start with DCA into top 10 coins by market cap, then use a smaller portion for swing trades based on promising news, events, or technical setups. Use the last 20% for short-term day trading if you have the time and confidence.
When to Take Profit
This is where most traders fail. Set clear rules before entering a trade:
- Take partial profits at +5% to +10% on short trades.
- Move your stop loss to breakeven once you’re in profit.
- Always have a “take-profit plan” even for long-term holdings like Bitcoin.
Remember: Unrealized profits are not profits until you take them.
Final Thoughts
There’s no magic formula, but there is a mindset:
- Trade small, learn big.
- Focus on consistency, not jackpot trades.
- Always protect your capital — your first goal is to stay in the game.
If you follow this structure, you’ll already be doing what 90% of traders don’t — trading with a plan.
💡 If you want to start trading safely, open your Binance account here and practice these strategies step-by-step. Follow me on YouTube and Telegram for live insights and updates.
