3. Charlie Gem - Trading Money Management
Our Charlie Gem - Trading Money Management guide is a comprehensive guide to help traders manage their money while trading in the cryptocurrency market. The guide outlines the risks involved in trading and how to mitigate them to maximize profits. We have specially created this for users who follow our Charlie Gem alerts, with the aim of helping traders of all levels to manage their funds efficiently and effectively.
To start with, we recommend that you invest only 10% of your total DeFi portfolio following our Charlie Gem alerts.
The moment you earn 2x of that original 10%, you should take back the 10% you originally invested. You have now completely covered your deposited amount and your trading from here on in is completely free. This is one of the crucial starting points when it comes to money management.
Remember this phrase: Always take a deposit! This is what most successful traders do. They take a deposit at the right moment of the trade and leave themselves a risk-free pocket for the rest of the active trade.
In Charlie Gem - A Guide to Risk Factors, we introduced the different risk factors of our alerts, with detailed information on each. In this guide, we will build on them further, with tips on how to manage your money for each of them.
High-risk trades (Risk 7-10)
To ensure responsible trading, limit each trade in the high-risk category to a maximum of 5% of your total assets allocated to Charlie Gems alerts. Keep in mind that there is a possibility of losing this investment, but if the trade goes in our favor, it has the potential to generate life-changing returns.
For high-risk trades, once the initial trade reaches a 2x return, we recommend withdrawing the initial deposit and leaving the remaining investment as risk-free pocket for the ongoing trade.
Having a well-defined profit-taking plan is crucial. Determine at which levels you want to secure additional profits and stick to your plan. Our typical trade closure ranges from 5x to 10x the initial investment, although it can occasionally be higher or lower. Rest assured, we will always keep you informed about trade closures through our Telegram and Discord channels.
Avoid Fear Of Missing Out (FOMO) and stay patient. Market dips are inevitable, so split your 5% trade allocation into multiple parts. Implement a dollar-cost averaging (DCA) strategy by entering the trade at different levels to achieve an average entry price.
For these high-risk trades, it is advisable to use a separate wallet. You can refer to our Meme Coins / Low Market Cap Assets Trading Guide for more detailed information about the associated risks and recommendations when trading these types of assets.
Keep in mind that these trades are very high risk and there is the chance of rug-pulls or other scams. Always follow your money management plan to ensure you’re managing risk, stay active in our Charlie Gem Telegram group for the most up-to-date information on alerts, and only invest what you can afford to lose.
Mid-risk trades (Risk 4-6)
In the mid-risk category, we include assets that have a track record and audit reports, but still have a relatively low market cap. These trades involve speculation and there is still a potential risk of hacks or scams.
When it comes to mid-risk trades, it's important to limit each trade to a maximum of 10% of your total assets allocated to Charlie Gems alerts. These assets can be highly volatile but not as much as those in the high-risk category. You have the flexibility to close the trade at any level if it's not going in your favor, but it’s up to you to set a specific level at which you will exit the trade if it goes wrong. This level depends on your risk tolerance and might range from 20-30% loss. If you are having trouble setting an exit level for a trade, ask us for help.
For mid-risk trades, we suggest withdrawing the initial deposit once the trade reaches a 2x return. This allows you to secure your initial investment and continue with a risk-free pocket for the ongoing trade. Having a well-defined profit-taking plan is crucial. Determine the levels at which you want to secure additional profits and stick to your plan.
Avoid FOMO and remain patient. As with the previous case, you can divide your allocation of 10% into multiple parts. Implement a Dollar-Cost Averaging (DCA) strategy by entering the trade at different levels to achieve an average entry price.
Our typical trade closure in the mid-risk category ranges from 3x to 5x times the initial investment, although variations can occur. Rest assured, we will keep you informed about trade closures through our Telegram and Discord channels.
Remember that these trades still carry a high level of risk. To understand the specific risks associated with this category, you can refer to our guide, "Charlie Gem - A Guide to Risk Factors." Always adhere to your money management plan to effectively manage risk, stay active in our Charlie Gem Telegram group for the latest alerts, and only invest what you can afford to lose.
Low-risk trades (Risk 1-3)
The last category comprises trades with a low-risk factor. These trades involve assets from well-known projects, significantly reducing the chances of any type of scam. We use these assets to bring balance to our trading portfolio.
With low-risk trades, it is important to limit each trade to a maximum of 15-20% of your total assets allocated to Charlie Gems alerts. These assets exhibit much less volatility compared with the previous risk categories, and they also allow us the flexibility to close the trade at any level if it's not going in your favor. You can determine a specific exit level in case the trade goes wrong, and this will depend on your risk tolerance and how much you are willing to sacrifice. Typically, this ranges from 10% to 30% in losses.
For low-risk trades, we suggest withdrawing the initial deposit once the trade reaches a 2x return. This ensures the preservation of your initial investment and provides a risk-free pocket for the ongoing trade. It is essential to have a well-defined profit-taking plan in place. Determine the levels at which you want to secure additional profits and adhere to your plan.
Avoid FOMO and remain patient. As with the previous cases, you can divide your allocation into multiple parts. Implement a Dollar-Cost Averaging (DCA) strategy by entering the trade at different levels to achieve an average entry price.
Our typical trade closure in the low-risk category is around 3x the initial investment, although variations can occur. You can trust us to keep you informed about trade closures through our Telegram and Discord channels.
Trades in the low-risk category are suitable for traders who prefer not to monitor their open trades throughout the day. By choosing this risk category, you gain more freedom, but it is still necessary to keep up to date with the notifications on our Telegram and Discord channels regarding the progress of the trades.
Conclusion
Our Charlie Gem - Money Management Guide provides a comprehensive approach to managing your money while tracking and trading our alerts. Good money management when trading in DeFi is essential on the journey to making an amount of money that will change your life.
Analyst opinion
DeFi traders need to have a clear strategy and stick to it. Without a strategy, even if they make some money, they will put it back into the market. Good money management is the key for all successful traders in DeFi. If you need help finding gems, or if you want to be inspired by our alerts on the best opportunities to invest in DeFi gems, join our Discord server and Charlie Gem Telegram group for all the latest information!
Analyst
1. Money management
3. Charlie Gem - Trading Money Management
1. Decentralised Finance (DeFi)
2. Creating HW and SW wallets
3. Connecting SW and HW wallets
