A trader made a handsome profit from shorting crypto in an experiment that ended with $1,473 from an initial outlay of $1,000. In 24 hours, he achieved a 47% gain by limiting himself to short positions.<\/p>\n
As detailed in the most recent Crypto Cotleta, the exercise was a high-risk one. He put $1,000 on the line to see how well shorting would perform in volatile cryptocurrency markets. Rather than leaving it to chance, the trader relied on technical analysis and indicators to determine his entry points, ensuring every move was a matter of strategy.<\/p>\n
Gold, Bitcoin, and a few altcoins of his choosing made up the bulk of the trader\u2019s positions. In such an unpredictable market, he was careful to set a $50 stop-loss on every trade as a means of risk management. One particular short on the IN coin proved to be the highlight, bringing in more than $400 in profit by itself.<\/p>\n
Yet for all that success with IN, he would warn against overexposing oneself to altcoins; in his view, they are too risky to warrant a sizeable investment. The message is to be disciplined about risk. If you do not secure your profits, the volatility of these assets can wipe them out in no time.<\/p>\n
The 24-hour experiment saw the trader reach a best-case profit of $1,500. In the end, though, he was left with $1,473 after being slow to close out his positions. It is a case in point for what the trader made clear on Crypto Cotleta: in a market that moves as quickly as this one, one has to be strict in following stop-loss and profit-taking protocols if gains are to be protected.<\/p>\n
What the exercise showed is that shorting crypto is viable as a strategy provided there is proper analysis and risk control in place. The trader\u2019s results are a reminder that the risks are every bit as considerable as the potential rewards; success, then, comes down to preparation and discipline.<\/p>\n
Source \u2014 Crypto Cotleta: https:\/\/www.youtube.com\/watch?v=ZCaCNgtrouQ<\/a><\/em><\/p>\n <\/p>\n