The global pandemic has reshaped financial markets, amplifying volatility and accelerating digital transformation—especially in the world of cryptocurrency. For investors navigating this uncertain terrain, maintaining a profitable crypto portfolio requires more than just luck. It demands discipline, strategic thinking, and emotional resilience.
Drawing inspiration from Dennis Gartman—an influential trader with decades of experience in forex, commodities, bonds, and derivatives—we’ve adapted his time-tested trading principles for the unique challenges of the crypto market. Known for his skepticism and practical approach, Gartman’s rules emphasize risk management, trend respect, and psychological discipline—qualities that are even more critical in the highly volatile and often illiquid crypto space.
While traditional markets have their rhythms, crypto moves at lightning speed. Emotions run high, FOMO spreads fast, and misinformation is rampant. That’s why we’ve curated and refined 10 essential strategies to help you stay profitable, avoid common pitfalls, and preserve both capital and peace of mind during turbulent times.
1. Never Average Down on a Losing Position
One of the most tempting yet dangerous moves in crypto trading is averaging down—buying more of an asset as its price drops to lower your average entry point. For example, if you bought Ethereum at $220 and it falls to $140, doubling your position brings your average cost to $180. On paper, this reduces your breakeven from 57% to 29%. But emotionally and strategically, it’s risky.
👉 Discover how smart risk management can protect your investments in volatile markets.
Gartman strongly advises against this tactic. Increasing exposure to a losing trade amplifies both financial risk and psychological stress. Instead of doubling down, consider cutting losses early. In fast-moving crypto markets, a small loss today can become a devastating one tomorrow. Protect your capital—don’t commit more to a failing position.
2. Stay Willing to Change Your Mind
No matter how confident you are in a bullish outlook, if the market moves against you and hits your stop-loss, it’s time to exit. Don’t stubbornly hold on or immediately re-enter with another bid. The only logical response may be to sell more, not buy.
Markets don’t care about your opinion—they reflect collective sentiment. If Bitcoin or any altcoin keeps dropping despite positive news, the trend is clear. Successful traders aren’t those who predict perfectly; they’re the ones who adapt quickly.
Being flexible isn’t a sign of weakness—it’s a sign of discipline. Let data and price action guide your decisions, not ego.
3. Emotional Stress Is Worse Than Financial Loss
Losing money hurts, but the mental toll of holding onto a sinking asset can be far worse. Watching a portfolio bleed value eats away at focus, sleep, and overall well-being. After a loss, step back. Spend time with family, exercise, or engage in activities that restore balance.
Every investor makes mistakes. What separates professionals from amateurs is their ability to detach emotionally from trades. Investing should be analytical; trading shouldn’t become personal.
For instance, XRP enthusiasts often struggle to sell at a loss due to strong long-term beliefs. Similarly, during Bitcoin’s plunge from $10,000 to $4,500 in March 2020, many believers froze, unable to accept reality. Avoid emotional attachment—your portfolio will thank you.
4. When the Market Is Rising, Stay Long or Neutral
If your trade triggers a stop-loss, it likely means you misread the trend. Too many traders go broke trying to “catch the bottom.” Instead, reassess the broader market direction after each loss.
In a bull market—like Ethereum’s upward trajectory in early 2025—traders should either go long or stay neutral. Shorting during strong uptrends is like catching a falling knife. Wait for clear signs of reversal before changing stance.
Conversely, in bear markets, avoid opening new long positions regardless of short-term rallies. Trends persist longer than expected. Patience pays off.
5. Be Patient with Winners, Quick to Exit Losers
You don’t need to win most trades to be profitable. Even getting only 30% right can generate strong returns—if you manage risk properly.
Key strategy: Keep losses small (7–10%) while letting winners run. As a profitable position grows, consider adding to it incrementally—this compounds gains during strong trends.
Use trailing stop orders to lock in profits. For example:
- At 10% gain: Sell half to secure profits.
- At 15% gain: Move stop-loss up to protect 10%.
This approach balances greed and caution—exactly what volatile crypto markets demand.
6. Respect Strong Market Trends
No one knows who first said it, but “the trend is your friend” remains one of the most valuable truths in trading.
Even if you’re convinced a coin is undervalued, if the market disagrees, wait. Don’t fight consensus. Confirmation bias—especially on social media—can blind you to real signals.
Many investors follow crypto influencers who may have hidden motives (e.g., offloading bags). Rely on price action and volume, not tweets.
👉 Learn how to spot real market trends before the crowd catches on.
7. Pay Attention to Price Action and Volatility Spikes
A sudden 4% drop after a slow climb could signal deeper trouble—a 12% or 20% fall might follow within days. React early.
Likewise, after prolonged bear markets, sharp rallies may precede reversals rather than sustained recovery. Wait for confirmation: clearer chart patterns, rising volume, and structural shifts.
Timing matters. Entering too soon can turn a good idea into a bad trade.
8. Leverage Market Cycles Based on Your Risk Profile
Crypto markets move in cycles: accumulation, markup, distribution, markdown.
When sentiment turns bullish and trends confirm:
- Increase staking
- Add to winning positions gradually
When prices fall:
- Reduce position sizes
- Preserve capital
Align your actions with the phase—not your hopes.
9. Be Patient—Markets Often Go Nowhere
Short-term noise often masks sideways movement. Many novice traders mistake volatility for direction. In reality, markets frequently consolidate for weeks or months.
If uncertain, do nothing. Waiting isn’t passive—it’s strategic. Force trades only when edges are clear.
10. Simplify: Trade Less, Not More
Complex strategies with dozens of indicators rarely outperform simple ones. Fewer variables lead to clearer decisions.
If your crypto surges 15%, then 20% the next day—hold. Bull runs bring big gains but also sharp corrections. Avoid overtrading out of fear or greed.
Most profitable trades take days or weeks to mature. Constantly watching charts fuels anxiety and impulsive decisions.
👉 See how simplifying your trading strategy can lead to better results.
Frequently Asked Questions (FAQ)
Q: Can I average down in crypto if I believe in the long-term potential?
A: While long-term conviction matters, averaging down increases risk exposure. Only do so if you have a clear entry plan and risk buffer—not out of desperation.
Q: How do I know when a trend has truly reversed?
A: Look for sustained price breaks above key resistance levels with rising volume. Avoid acting on single-day spikes.
Q: Should I trade every crypto movement during a pandemic?
A: No. High volatility doesn’t mean high opportunity. Many moves are noise. Focus on high-probability setups with defined risk.
Q: How important is emotional control in crypto trading?
A: Extremely. Fear and greed drive poor decisions. Develop routines that promote mental clarity—like journaling trades or taking breaks after losses.
Q: What tools help simplify crypto trading?
A: Use basic technical analysis (support/resistance, moving averages), set automatic stop-losses, and track only a few key assets deeply.
Q: Is staking safe during market downturns?
A: Staking carries smart contract and liquidity risks, but holding through dips can yield rewards if fundamentals remain strong.
Core Keywords:
- crypto portfolio
- pandemic investing
- trading strategies
- risk management
- market trends
- emotional discipline
- stop-loss
- volatility
By combining timeless trading wisdom with modern crypto realities, these principles offer a roadmap for sustainable success—even in crisis conditions. Stay disciplined, stay informed, and let the market guide you.