Thread by @Captain1Block

⭐️DCA - To #invest, as I do 😄
Lots of people I know unwittingly donating their money to the market because they don't DCA or take profits.
I'll discuss my personal DCA strategy in this 🧵, that I use for almost all my trades. These are guidelines I try & follow,

I'm using @tradingview to chart.

1.1/Don't follow the average entry price! 🛑
It's just an avg. value and does not reflect the absolute. Just because price > avg., doesn't mean you're in profit 💰Knowing it is good, but don't trade based on it.

1.2/I think of each buy as a new position. Mark it on a chart, I usually mark the qty. I bought with a horizontal line at the entry.
Tip: Grp your "buy lines" in the obj. tree to switch them on/off while charting.
Remember, price visits a level multiple times before leaving it.

2/Split your investment in small chunks 🍕
For ex, investing $1000 in 3 coins, avg. 10 entries per coin, so 30 times to buy, $1000 div. by 30 = $33/Entry/Coin. Again, this is just an avg, if price falls quite a bit then you can increase buying power at the cost of fewer entries.

3/Give it some space! 🏠
I usually open a position only if price deviates 7-10% or when my TA says so. I might even split my avg. entry into even smaller chunks at a particular price level. Depends on where I'm expecting the price action to go from that level.

Side note: Please spend time to learn technical analysis, its not an absolute science but it has saved me in the past and always me given a general indication of what to expect. Also, it'll take some time to be confident, so have patience, and time.

4/Prepare for the Worst 🚨
Ofcourse, you want to DCA into only those projects that you truly believe in, so you expect the best but prepare for the worst, even so because this is #Crypto
Don't ignore the news either, crypto market is quite fast to react to such events.

4.1/Be on the lookout for changes in on-chain data, volumes, investor activity, project developments, partnerships etc. that could impact price in the mid-long term, and position accordingly. If you need to de-risk then take some off the table, preserving capital is primo!

5/I'm a Profit Maxi 🤑
Some people don't start taking risk off till their entire position is in net profit. Not in crypto. B'cuz I treat each entry as a new position, I take profits accordingly so I always maintain a healthy cash reserve. Remember, you're in it for the long term.

5.1/For ex, if I buy 2 #Avalanche , 1@$90 and 1@$80, if the price goes to $87 and I don't trust the rally then I'll take probably take 20-30% off my $80 position along with profits. This way I'm always able to keep some money aside for further moves.

5.2/If we're in an uptrend/bull market when price is above all my DCA positions and I trust the rally. I'll usually take out 25% every time price hits +50% or if I really trust it then 25% for every 100%. Don't try to time the top. Just leave a small 15-20% moonbag in the end.

5.3/This is the only time I might calculate a cost avg. If I take out a bit more than my profits to de-risk then it's ok, can never have enuf reserves 💰
Remember, we want that sweet 10x, not aiming for a 25% move. 🙃📈

6/Managing your buying power 💱
Maintaining cash reserves is super important, maybe more so than taking profits. I always keep 25-30% of each account I hold, in stables. When it hits 10% then I stop buying. This is for contingency if price take a shit 💩and we need to deploy.

6.1/To mitigate this situation, either topup the reserve with new money OR take profits/de-risk. Maybe even close positions if it really isn't looking nice, depends on your DCA. Don't be in love with your bags, ditch them if the situation develops!
Small Loss < Big Loss 😭

7/Remember you are in this market to realize the full potential, so act responsibly. Its imp. to manage risk to fight another day. Increase quantity and $$ will follow. Also, better to buy same $ amount/DCA than same quantity/DCA, which is why we calculated avg. entry in pt 2.

Leaving a few %% for bigger gains is ok. I like to trade macro. For me, the money I make in a run has to be secured, mostly in stables or #BTC and then I would ideally fund the next run/investment with the yield I generate on that. I love defi 💙

If there's something in this strategy, that doesn't fit or can be optimized, or something more that can be added, then please do let me know.
Hope you enjoyed the long read 📕