Looking at my pet, Luna , made me realize the power of compounding—born from the art of patience.
Luna is a tortoise that loves to sleep, yet her steady nature reminds me of the compounding strategy’s essence.
What is Compounding Strategy, and how can it be adopted as a trading strategy for a discretionary crypto trader?
This is a thought-provoking question for you, the reader. Let’s discuss it casually in the comment section.
As for me, I’ve fully committed to adopting and holding onto the compounding strategy because I’ve come to understand that wealth is built over time, not overnight.
A Lesson in Sustainability
A business partner once asked me a life-changing question: “How much do you want to make in a year?”
As a trader, you must ask yourself this same question:
“How much do I want to make in a year?”
Answer it sincerely—just you and your reflection. You can’t lie to yourself.
Once you do, you’ll need to:
Set a Base Trading Capital – The foundation for your trading activities.
Define a Realistic Profit Target – A specific goal that aligns with your financial aspirations.
Key Rules to Follow
✓ Always hedge when trading to manage risks.
✓ Determine your investment cycle and stick to it.
✓ Allocate a percentage of your Base Trading Capital to a reserve for risk management (e.g., 75% trading capital, 25% risk reserve).
Let’s not forget that $DeFi is sustainable and thrives on retail traders. Compounding, however, remains the ultimate game -changer.
Crypto trading isn’t a scam, but people can be. Always Do Your Own Research (DYOR) before engaging in any trade.
Stay blessed.
TYU
The Discretionary Spot Trader
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