Dogecoin (DOGE) has made huge gains this week, following a generalized bull market and a memecoins surge. Grabbing this opportunity, a cryptocurrency trader increased his stack by 10 times trading DOGE. Here is how he did it.
In a calculated display of cryptocurrency trading acumen, the trader known as Credible Crypto transformed a $10,000 investment into $100,000 within a 48-hour timeframe, leveraging Dogecoin market movements.
This trader’s journey was thoroughly documented through a series of posts starting on February 29th. Further, Credible Crypto posted a video on March 3 detailing the whole operation and offering insight into sophisticated trading strategies and risk management practices within the volatile landscape of cryptocurrencies.
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Credible Crypto’s trading strategy from $10,000 to $100,000 in 48 hours
Beginning with an entry point of $0.121 for Dogecoin, Credible Crypto outlined his methodology and rationale behind the trade. One critical aspect of his approach was using “50x leverage,” which often leads to confusion regarding the potential for liquidation.
However, he clarified that effective risk management techniques allowed him to maintain a consistent risk level, underscoring that the nominal amount of leverage does not impact the actual risk as long as it is managed appropriately.
“When I entered this trade, I wanted to risk $10,000. Okay? So, again, regardless of what leverage I was using, based on my position size, $10,000 was being risk. I was willing to lose $10,000 on this trade.”
– Credible Crypto
Notably, the initial strategy involved recognizing a potential breakout from a consolidation pattern in Dogecoin’s price action. With a $10,000 position on the line, the trade experienced its share of volatility, including a momentary paper loss of $7,000. It occurred during the dip inside the range – below the entry point and above the liquidation price at $0.1131.
Yet, through disciplined adherence to his predetermined stop-loss strategy, Credible Crypto preserved his position, avoiding premature exit from the market.
The DOGE trader embraced an opportunity to increase his position
Later, the DOGE trader decided to compound the position based on new information and technical analysis. Identifying a second entry point with a more favorable risk-reward profile allowed Credible Crypto to increase his exposure while effectively managing the overall risk.
Essentially, this move exemplified adjusting stop losses and position sizes in response to evolving market conditions. Thereby maximizing potential returns without escalating the initial risk exposure.
Ultimately, the decision to secure profits prematurely, rather than holding out for potentially higher gains, culminated in a significant payoff.
This experience highlights the trader’s success and serves as an educational narrative on the nuances of leverage, stop-loss strategies, and the psychological elements involved in trading.
In particular, this case underscores the importance of rigorous analysis, risk management, and the adaptability to capitalize on market dynamics. Investors navigating the cryptocurrency market must be aware of its risks and have the proper experience to make correct decisions.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
