Kara Szabo's Crypto Trading Playbook: 12 Game-Changing Rules You Need to Know

Crypto analyst Kara Szabo dropped a comprehensive trading framework on X recently, and it’s packed with practical wisdom. Rather than getting lost in hype or following the crowd, here’s what separates consistent winners from bagholders.

The Foundation: Mindset and Independence

First, forget about relying on others for trading signals. Kara’s philosophy is straightforward—take ownership of your decisions. This means building your own judgment rather than chasing tips from social media gurus. The crypto market rewards independent thinkers, not followers.

Strategic Position Management

Here’s where many traders go wrong: being fully invested during rallies. Kara advocates keeping dry powder in your pocket. When markets dip, that’s when you deploy capital—a core principle of swing trading. The beauty? You actually get to lock in profits regularly instead of watching gains evaporate during corrections. She’s walked this path: over 700 trades executed in 2023, with only one ending in red.

What to Buy and What to Avoid

Focus your heavy lifting on high market cap altcoins—they offer better risk-adjusted returns. However, stay cautious with DEX tokens. Kara’s hard limit? 10% maximum allocation, given the rampant scam ecosystem in that space. The rule here: concentration in quality, diversification in risk.

The Entry and Exit Framework

Never catch falling knives at all-time highs (ATH). Wait for at least a 5% pullback before entering. When exiting, here’s the non-negotiable rule: every trade should close green, even if it’s just 1% profit. That small win compounds over time.

Dollar-cost averaging (DCA) works both ways—use it to build positions gradually and to scale out via stop loss orders. This removes emotion and ensures disciplined exits on the upside.

What to Ignore

Stop obsessing over what other traders are claiming. Their portfolios aren’t your responsibility, and their claims might be cherry-picked or outright false. Focus on your own execution instead.

Similarly, don’t torment yourself replaying trades you didn’t take. Missing the boat on someone else’s gains isn’t a loss—exiting your position profitably is always a win.

Risk Management the Right Way

Day trading? Skip it. Technical analysis from random YouTube tutorials? Kara calls it pseudoscience, and she’s not entirely wrong—if TA were foolproof, the market wouldn’t exist.

Stop losses deserve respect. Only set them above your entry (in profit), tightening them as the coin appreciates. Setting a stop loss in the red isn’t strategy—it’s gambling.

Protecting Your Capital

Never pay for trading tips or join paid Discord groups. Your money is your responsibility. Don’t lend crypto to anyone under any circumstances. These seem basic, yet countless traders ignore this advice.

The Portfolio Structure

Finally, spread your risk. Use different exchanges and wallets. Don’t go all-in on a single asset. Diversification isn’t boring—it’s how you stay in the game long enough to profit from multiple cycles.

Kara Szabo’s framework strips away noise and focuses on what actually works: discipline, independence, and consistent profit-taking.