stop loss is a great option to prevent loss, obliviously!
but when it comes to placing a stop loss on an altcoin that is extremely manipulated and even more volatile, you can face a lot of problems.
what percentage to choose? if you choose a small percentage like <5% then it will be reached multiple times a day in some cases! if you choose a larger size to prevent that then it doesn't make any sense and you may end up selling at the bottom.
that is the problem that i believe everyone is facing.
what i do is that i stay away from altcoins whenever market becomes unpredictable or whenever there is a large dumping going on like the past 4 days.
Topic: Countering market crash with stop-loss? (Read 108 times)
Kinda newbie (< 7 months) trader here,
Is stop-loss a viable strategy to counter market dumps for those planning to HODL for months? Only recently i just realised there's really something like this and i thought anyone could effectively preserve your alts value back to ETH or ETH back to USDT on lets say a -10% breakpoint. Of course you might encounter some rare case where it your coins bounce back or continue its downtrend, still for me that's a safe net for buy backs, generally for long term HOLD since markets are just too sensitive toward Bitcoins.
Thoughts guys?
Is stop-loss a viable strategy to counter market dumps for those planning to HODL for months? Only recently i just realised there's really something like this and i thought anyone could effectively preserve your alts value back to ETH or ETH back to USDT on lets say a -10% breakpoint. Of course you might encounter some rare case where it your coins bounce back or continue its downtrend, still for me that's a safe net for buy backs, generally for long term HOLD since markets are just too sensitive toward Bitcoins.
Thoughts guys?
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