Usually, financial market brokers and trading platforms in other markets do not give their clients advice on how to make money. Their main goal is to get money … for themselves, and not your results are secondary. However, it is different at YouHodler. When a customer gains, a company also gains! That is why it is in the best interest of the latter to provide investors with new tools and strategies that will ensure their financial success.
The chart will tell you the truth (will you?)
Lock strategy is such a strategy – which can help you make money. It’s an old concept of many traditional investment communities, but it’s worth seeing how you can use it in a new way on YouHodler.
Before we get into the history and tangible examples of how this type of trade works, let’s first analyze the chart above. Trade charts are a great tool for a very specific purpose, but there is one important fact that we should all know about them. They don’t predict the future. They are good for analyzing past trends to help you guess the future of market behavior. Even a technical analysis expert is not able to fully predict the future of the market, especially for cryptocurrencies, which are extremely unstable and unpredictable. That is why lock trading is an effective strategy for covering losses and securing investments. Much better than making decisions solely based on graph analysis.
What is trade on the traditional market?
On the traditional market, the so-called a locked position occurs when an investor does not exit the transaction in which he is lossy, as most people usually do. Instead, it opens the position with the same exact size in the opposite direction, simultaneously or slightly after opening the first position. For example, suppose you open a position to buy Tesla shares at a price of USD 5 per share. The price then drops to $ 4, but instead of closing the position, you open another position, this time a sale position at a lower price without closing the already open buy position.
As a result, you have somehow improved your situation by leveling the loss, and the transaction has not been closed. So if the price increases, then the “buy” position will improve and the “sell” position will deteriorate. If the price drops below, the loss on the buy position is covered by the gain on the sell position. Put simply, trading with such locks is essentially the same as delayed stop loss. This gives the trader more time and the opportunity to wait for uncertainty.
Now, returning to the world of cryptocurrencies, let’s explore how you can do all this quickly and easily on YouHodler using the Multi HODL platform tool.
How do you carry out lock transactions on YouHodler?
As mentioned earlier, it is almost impossible to predict in which direction the price of your assets will go, especially on the cryptocurrency market. However, using the lock trading example we just showed you can reduce some of this risk. Think of the cryptocurrency market like saw teeth or a roller coaster. There will always be ups and downs. It’s a natural part of the market. Therefore, by opening two Multi HODL positions at the same time, you have the chance to earn 50/50, because you know that the market will rise or fall.
Look at the graphic above. If you only opened the ‘up’ position at the point in Figure 1a, then during ‘Black Thursday’ you could only experience a significant loss. However, if you opened the Multi HODL position ‘up’ and ‘down’, you basically secured your funds and reduced your risk. When you close both positions at the bottom of this fall, your downward gains will offset the upward losses. In addition, you can manually close the position “up” if you were available at the time at the computer, but if not, then the simultaneous trading approach is still a fantastic way to secure funds.
Another possible method is to open two simultaneous positions and wait until both are profitable (as shown in Figure 1b). YouHodler charges only 1 percent. commissions within 10 days, so you just have to wait, make a profit of at least 2 percent to close one position, and then do the same later for the “reduced” position. With the daily movements of the cryptocurrency market often rising or falling by 2% – 5% (or more), this leaves a lot of extra space to cover these commissions. Just wait for one transaction to be profitable, then wait for the other transaction to be profitable. It is primarily about taking advantage of market changes in both directions. Of course, there is no guarantee that you will gain in both cases, but trading in this way simply gives you a better chance of making a profit by diversifying your Multi HODL position.
Lock trading is only available on YouHodler
YouHodler is all right because it allows you to do that while many other platforms are against such strategies. It is in the company’s best interest that everyone can reap the greatest benefits. In addition, this strategy works better on YouHodler than on traditional markets, because our platform offers:
– no rolling fees,
– no additional commissions or hidden fees,
– no daily, hourly or monthly fees.
We simply charge a fee of 1%. in 10 days, so you can have more funds to increase your cryptocurrency portfolio.
Lock trading is a really fantastic way to reduce market risk. If we experience an event such as “Black Thursday” again, as it did in March, you won’t have to worry about big losses if you trade with such a strategy. Opening two positions at the same time compensates for the loss, and if you manage to close a failed Multi HODL transaction early enough, you can potentially double your earnings.