Shay Benhamou Recommends Strategies to Crypto Traders for Maximizing Profits

The world of crypto trading is a volatile one. Rapid fluctuations can undoubtedly lead to profits, but losses are equally possible. While it is not possible to eliminate this risk completely, there are strategies that can come in handy for traders in maximizing their profits and keeping their losses under control. What are these? Shay Benhamou recommends some strategies that can help crypto traders in maximizing their profits. Check them out below:

  • Avoid FOMO and keep emotions in check

There are a number of emotions that can have an impact on your crypto trading decisions and it is a must to keep them in check and only trade objectively. Making decisions based on your emotions can only lead to disaster. FOMO (Fear of Missing out) is one of the most common emotions that crypto traders experience. The hype surrounding crypto often pushes people to invest in it without doing any research and this can lead to disaster. Likewise, panic selling is another blunder that you need to avoid if you don’t want to damage your portfolio. Shay Benhamou suggests that you keep your trade size small for keeping your emotions in control, as this will alleviate some of the stress. Make decisions based on research and data and you will be good to go.

  • Have a plan in place

Trading without a plan, particularly in a market as volatile and unpredictable as cryptocurrency, is a recipe for disaster. Therefore, Shay Benhamou recommends that you always have a trading plan in place, as this is also helpful in keeping emotions in check. It can help you set targets and boundaries for you to operate in and also give you direction. You know what you are moving towards and this can help you determine what steps you have to take to reach your destination. It is also a good way to understand exactly how many risks you are willing to take.

  • Set targets for risk management

Stop loss and take profit are two of the most important tools that can be used for risk management and Shay Benhamou states that you should set them immediately for maximizing your profits. The purpose of a stop loss is to prevent you from losing more money than you are comfortable with. You can decide how much loss you are willing to accept on a trade and it will automatically sell when the price hits the limit. Likewise, take profit means deciding how much profit you want from a trade.

Ideally, you would want to make as much profit as possible. However, experts like Shay Benhamou will tell you that it is better to be practical and set a limit, or else you will lose whatever profits you have made in your desire to make more from the same trade.

  • Don’t try selling at the top

You will be doing yourself a favor if you don’t sell all the crypto you have at the top. According to Shay Benhamou, there are a number of reasons for you to avoid this. First off, selling off all your crypto together will add to your stress because now you will have a lot of capital and nothing to do with it. This can cause you to make some rash decisions you want to avoid. Secondly, in your desire to reach the top, you might end up losing the profits you have already made, so it is best to not go there at all.

Instead of doing so, Shay Benhamou suggests that you go with percentage-based selling. This means that you sell certain portions of your trade upon meeting a target. For instance, you can sell 20% of your portfolio when you reach a certain value, then 30%, and so on. This helps you in realizing profits and doesn’t increase pressure to find a good trading opportunity right away, which can often lead to mistakes.