Topic: Big gains come with big losses - page 24. (Read 2479 times)

I do accept the fact that if there is a big rally and takes the price to new levels without any correction, it will come down hard but that does not mean that with very big gains you might personally end up loosing, be smart when it comes to identifying the peak and book your profits and enter at a later time and that is how you conduct a perfect trade.

it depends on the power of emotion and how much you have trading capital. the most important thing is emotion and how to control emotions and manage capital well.
the risk of losing will be small with good management.

Yes it will, this crash just temporary it caused by some social media like google, facebook abd twitter bsnd cryptocurrenculydvertising related. If this is over the price will comeback to high, we can wait in a few day ahead we can see the market will green agaian. And I know this time is a good time for everyone who have money, because he can buy some coin now. You can see in the market the price fall down drastically, like eth in desember later the price reach $1400 and now the price eth just $300 so what are you waiting for, buy now and hold until the price recover.

Mistakes are common and we know this is our teacher which will really mold us to be a better trader or investor later on.Its normal to think off that having a big risk would always comes after on having a potential big loss.This is why we should really be sensible to start out on small risk first since we are just newbies and gradually increase when you are experienced enough.Dont risk out too big if you do see your knowledge isnt still enough.

STILL THE NO. 1 RULE FOR STOCK INVESTORS: ALWAYS CUT YOUR LOSSES SHORT
In the battle for investment survival, you can learn a lot from judo. The first and most important lesson in that martial art is the same for the stock market: damage control.

Judo masters begin not by learning how to throw, but how to fall. They practice this skill until it's as natural as breathing. No matter how many times they're flipped, they can rise to fight again.

Highly successful stock pickers go through similar training: They must learn how to cut their losses short. This means selling a stock when it's down 7% or 8% from your purchase price.

Sounds simple, but many investors have learned the hard way how difficult it is to master the most important rule in investing.

No one wants to sell for a loss. It's an admission that you made a mistake. But if you can set your ego aside, you can take a small loss and still be fit enough, both financially and mentally, to invest the next day. Cutting losses quickly prevents you from suffering a devastating fall that's too steep to recover from.

Consider the math. Say you buy a stock at 50. For whatever reason, it drops 8% to 46 during the next few days. You promptly unload it and move on. To reclaim that loss, you need to make an 8.7% gain on your next purchase with your remaining capital, which shouldn't be hard to do.

What if you hold on?

You're sure the stock will snap back. Your research convinces you it's worth $100, so why get scared by a minor setback?
There's one problem. The market doesn't care who you are, what you think or how much you believe in a stock. It says you miscalculated, at least in the short term — a message that gets louder as the stock drops 25% to 37-1/2. To get back even, now you need a 33% gain, which is much tougher to come by than that easy 8.7%.

ICch072516What if the market really doesn't like your stock and slices it in half to 25? You don't need a calculator for this one: To recover a 50% loss requires a 100% gain. How many stocks did you pick last year that doubled in price?

If you limit losses on initial purchases to 7% or 8%, you can stay out of trouble, even if only 1 out of 4 buys delivers a modest profit of 25% or 30%. You can be wrong 3 out of every 4 times and still live to invest another day.

A .250 batting average is nothing to crow about. But even the best hitters in baseball fail more than they succeed. Consider Tony Gwynn, who in 1999 became the 21st member of pro baseball's 3,000-hit club. That year, the former San Diego Padres outfielder finished the season with a batting average of .338. That means he was coming up empty nearly 2 out of 3 times at the plate.

You won't see Gwynn fret after grounding out. The same is true for successful investors. They calmly take a small loss and look for the next potential winner.

So leave your emotions behind. Cutting losses with discipline will help keep your head clear when it's time to return to the market. A great paradox of investing is that the ripest buying opportunities occur just after bear markets — when the major stock averages have declined 20% or more.

That's exactly when most investors who haven't cut their losses are reeling and don't want to be hit again. It's hard to think straight after losing thousands of dollars. But the market always recovers. What kind of shape will you be in?  

big gains have a great deal of losses, there are times when something goes wrong that you think you're getting better, that's why it's going to drop you or damages you, so be practical.

my forecast for Litecoin is 326 end of this year

greetings.

thank me later

GLT.

I think that is the motivation for which I think can be more careful not to lose again because of course before we become successful there must be failure and loss so much that we can learn to avoid losses and failures that can generate profits very many because it can avoid mistakes that have been made in the previous.

many of those who have been upset with the current unstable market conditions and it certainly makes them unable to live in peace.
so it should not be too much if you want to invest and take profit sufficiently if not then it will make life worse.

That makes sense. Definitely we all are hopeful for the bitcoins market to increase and become healthier. They have been in dip since January of this year, so better for them is to take something up now. Because if they don’t do this, they will be losing majority of their investors and users. Right now, even, people are leaving this world just because they can’t wait anymore.

As much as I appreciate your post there are people wouldn’t appreciate it, lol. There are people who don’t believe that price should go down at all, they just want the price to keep on going up and up, which is something that will never happen. The price will always go up and down, this is a kind of business that involves risks and you shouldn’t invest with the intention that you must make profit out of it, there are times you will make loss just like the op said.
 

It's part of the trading and investing industry, once a coin hit up in just a small period of time, there are possibilities that it will go crash down right away. Because in the market, the value of each coins are fluctuation, we cannot say that it will just stay for a good price in a long period of time, that's how the market flows. Bitcoin from the very beginning has no value since the creation of it but when time flies, the value of it risen up and in fact it turned to almost twenty thousand usd, but what happen today, suddenly crash down to five thousand usd, because the demand and the supply of it are also fluctuating. So, when you invest or trade, be ready that you'll be experiencing a big gains yet with big losses.

That is absolutely why it is a market and anyone who is just basically looking for a growing market all the time, is apparently asking for something they cannot get. As long as people keep looking for the quick way out and end up joining FOMO, this is something we will always get to see happening. So far, things aren’t getting prettier because of the greedy mentality a lot of newbies have, but it is what it is and we just have to deal with it.

Fear & greed rule the market.

This is the problem when people use their heart, rather than their brain to invest. Yesterday I had a talk with one of my friends who invested in Bitcoin when the prices were $1,000 per coin. He was complaining that the prices are going down, and there is no recovery in sight. I asked him why he is complaining, when he is sitting on top of +600% returns.

That's understandable. But often novice investors forget that their chances to make money on their investments are equal to their chances of losing money.

If some of you may not know, bitcoin or rather the cryptocurrencies now are very risky probably because of the drop of prices lately and are having a hard time to recover. And most people who thinks bitcoin is going up forever are those who invested late last year when bitcoins price was around $17-$20k. Of course some of them are hoping bitcoin is increasing because of the losses they attained when they bought bitcoin at a high price.

People generally do not want to see the possibility of gaining psychology and fearing, yes many people just want to save money. They are panicking during sudden price drops and cause BTC to fall further.

Obviously the market is risky al the time. Moreover I do think that its not about this market but all the market which are virtual or not. I mean risk is always there and we cant make money without the risk. In todays world, how do we look at the crypto ?  A safe invest ? I don think that there is anything safe in it. Crypto world is working on the unity of public ledgers, a blockchain technology which is running without any regulations and moreover it is getting threats from the government itself. So you see the if we are in the crypto then we are already taking the risk of putting our money into it. But why we are doing it? We are doing it because we are getting something in return from it. People already became the richest one and thats all because of the risks that they always took. So better get the risk and earn.

I think so too. But as invest everyone wants to invest with high profits and minimize the risk of the lowest possible. And to do that when investing in the cryptocurrency market, you have to find out thoroughly about them, monitor the market on a regular and continuous basis. At the same time, you must be patient waiting for the opportunity to do business in the most effective and safest way. But you want to earn a high return, it will also be accompanied by high risk, because the market as a graph can go up or down to develop.