Topic: 3% loss 10% profit -> sell - page 2. (Read 2061 times)
I think it depends on the number of the coins you have at hand assuming is almost a 1 BTC worth then you will be making some profit but say is less than that and there are trading fee hinging your chances that will be a big no coz you will be losing at the end Learn to choose your preferences
It all depends on how many coins you have and what coins you hold and will be profitable or not, if all of them support why not and it is more suitable for the daily trading system that you must always monitor.
and in my opinion what you do is good and at least you sell it when it rises even though it's a little.
Yes it is all about the user that has experience with one coin he can trade it well but choosing more than risky. As you will not be able to concentrate at one side, Buy the coin when it is at low price but make sure your investment is long lasting and profit making if you are earning 3 percent lose for the sake of 10 percent profit then it is good investment.and in my opinion what you do is good and at least you sell it when it rises even though it's a little.
I don't think you will trade more often because it will depend on the coin itself and the market situations. And if you do not decide to trade, even you set bigger than 3%, and then you will not get anything because you are not trading. But if you decide to trade in 5x, you set 3% for a loss, 10% take profit, and you try on that day, then you will see what the result is. The point here is you need to decide how much you will set the loss and take profit, and then action.
If I set a 3% loss on my initial investment as a stop loss and a 10% profit as a stop for selling, will that make me trade too often ?
Trading is a forced phenomenon IMO.
It's upto a user's will whether to choose to trade or not.
And as you stated about the 3% and 10% thing, that is completely upto you. No one can tell you that this is the best percentage when you should withdraw the funds or want to trade more.
But I can say you that if you make 10% profit, then that's a great thing and you should trade more in order to gain more profit.
Basing on numbers then its clear that this is a good risk:reward ratio but the question is, would you able to hit up that Take profit before busting or hitting up your stop loss? 3% is way too near when it comes to cryptocurrency volatileness.It can hit up thats why i would decide to make it bigger or wider for it not to be hit up easily. Active trades is suitable with this R:R but somehow risky compared on swing ones.
If I set a 3% loss on my initial investment as a stop loss and a 10% profit as a stop for selling, will that make me trade too often ?
It's good a risk management but make sure that you have your analysis in trading, like if your every trade is valid and that 10% profit is possible? It's hard to say that in your every trade, there's sure 10% profits, before you can do that, you should have supporting technical analysis/fundamental analysis. And also, there are also problem in stop loss, some stop losses are not triggered especially when the market does the flash dump and boom, sometimes you get liquidated by this. If I set a 3% loss on my initial investment as a stop loss and a 10% profit as a stop for selling, will that make me trade too often ?
It is not true that a loss rate of 3% in the cryptocurrency sector is very accurate, because prices in this sector vary considerably. Using '' Stop Loss '' and '' Take Profit '' feature in your transactions will be useful for you and proves that you are a successful and knowledgeable trader. But as I mentioned, a 3% stop loss rate is very low, because many large investors can often easily explode these stop loss orders. I think it would be more useful for you to bring this rate to 7%, but it is entirely up to you to determine this ratio. Finally, I think it's nice to have a profit margin of 10%.
It all depends on how many coins you have and what coins you hold and will be profitable or not, if all of them support why not and it is more suitable for the daily trading system that you must always monitor.
and in my opinion what you do is good and at least you sell it when it rises even though it's a little.
and in my opinion what you do is good and at least you sell it when it rises even though it's a little.
That kind of activity depends on you. Well, I'm a born risker so whenever I'm trading I never stop until my thinking is that if that is the final stop on the rally the trade I started. It's not so hard to think of that possibility since what I believe is that to be a trader you just need to understand the psychology of the market.
I suggest you perform long term trades than short term trading. Long term trading is much better and you can gain higher profits. 3% is fine but can easily be filled. You can stop loss at 10% and sell it at 30%. But well, your strategy is fine. As long as you gain profits. However, it is too risky to perform your style in trading.
This risk management better to use for coin that has lower fluctuation than others, like for BTC, ETH, XRP. But for others altcoin usually has higher fluctuation so we have to put stop loss and take profit higher. Maybe better use stop loss 5% and take profit 15% for others altcoin.
That good trading strategy, but we have to make open potition carefully to avoid the price going down to stop loss area before going up. With high fluctuacion look better to set stop loss 5% and take profit 10% to avoid the price touch the stop loss before the price increase.
If I set a 3% loss on my initial investment as a stop loss and a 10% profit as a stop for selling, will that make me trade too often ?
I think you will often make buy and sell orders in a short period of time. 3% down and 10% up will be easy to hit especially if bitcoin is your main currency. You must be very active in monitoring price movements in the hope that you will not miss even a small chance of the fluctuations. Btw, that is a nice idea regardless the percentages you put for both sides.
If I set a 3% loss on my initial investment as a stop loss and a 10% profit as a stop for selling, will that make me trade too often ?
You are the stock market to ask this, because the price here walks +/- 10% during the day without a special reason. I think you're just inexperienced or just came to this market. Because for altcoins to make 10% is not difficult. The question here is another - Will you stick to this theory??
Many people build a goal to trade crypto to stick to a particular strategy everyone does. If you manage to trade so the number of transactions for this is not important!!!
That mean you will do day trading, that good strategy to make consistently profit because in case in 10 times trade your open potition make profit from 5 trade and others 5 trade touched stop loss, you still make good profit. Do not forget to use stop loss for day trading because this is the most important thing factor that make possible to make monthly profit.
It is so hard to predict the next movement of Bitcoin. Its either another crash or a pump. The price of BTC is in the hands of all Bitcoin holders in the whole world. Its up to you if you trust BTC, Hold it no matter what happened!
The idea is very interesting and attractive, but you will need to really monitor your orders, cryptocurrencies are still quite a volatile tool
The 3% is too low to set as stop lost and can easily triggered any time why the coin might go up in some seconds, so if you are a day trader then you need to be watching closely you chart and also ready to use stop lost at a long range or never even set it but only wait for your target profit time to hit and move out of the market.
I think when you are making 3% loss strategy and 10% profit to sell, you are using in day trading. It is a safe strategy but the market will not be as easy as your guess when the market is going down. Long-term strategy may be better suited to your calculations.
If I set a 3% loss on my initial investment as a stop loss and a 10% profit as a stop for selling, will that make me trade too often ?
not at all. you make at least 4% profit out of it. pretty good for me actually.
Jump to: