Topic: DCA instead of stop-loss - page 2. (Read 235 times)
Well if you're DCA'ing into coins that are relatively well known I think you're good to go? Bitcoin is one well-known example to be the best coin in DCA'ing, I mean you'd never go wrong with Bitcoin in general anyway. I've always used DCA'ing after letting go of trading since I never, ever want to go back to the days where my psyche was taking a toll due to the movement of the market, especially a very volatile one like the crypto market. Glad I did anyways.
Never trade against the market mate wherein always follow the trend and of course don't move your stop loss to prevent massive losses. Because to be honest that is the common problem of some traders why their account always wipe out afterwards so be aware and must have risk management.. If you can't see an opportunity to buy base on your strategy as well better to take a break, always remember that tomorrow is another day.. Lol
theres still chance that bitcoin down to 30k area, im ready to dca at that price but if its not then im also fine.
Lol if you're just going to do dollar-cost averaging only at certain prices or only after a certain amount of price decrease, then you're totally missing the point of dollar-cost averaging.
theres still chance that bitcoin down to 30k area, im ready to dca at that price but if its not then im also fine.
in case that the market turns against me - I become an investor until I spot an opportunity to carry out a correctly calculated DCA (I've done it enough times that now I can be fairly certain when will it move in my desired direction and that the movement will be enough to recover and close the deal in green).
Yeah, that must be the best option for a trader can have on negative market direction. But, it will be possible only on following conditions:1. DCA will be possible only with fundamentally stronger assets like bitcoin.
2. DCA is all about investment hence only on spot market possible with delivery (withdrawing to personal wallet).
It requires a lot of reserve, but hey - it goes to show that the 'up to 5%' rule really makes sense.
Yeah, if you are about to average your buying costs then you should never prefer to go all-in. It means that you will have some reserve always to buy more when dips happen. DCA is considerable but we know that not all would be financially capable on doing things and instead they would cut-loss so that the capital that they do have left would be something be invested
on other possible options that they would look upon.For those who do have extra money for doing DCA then it could be done but this would really require soo much trust and patience yet we know
that price could deep down further and its up to someone on how they would really be looking for this one.
on other possible options that they would look upon.For those who do have extra money for doing DCA then it could be done but this would really require soo much trust and patience yet we know
that price could deep down further and its up to someone on how they would really be looking for this one.
Honestly though, if someone is not financially capable of putting even a little bit of money into bitcoin every month, then that person probably shouldn't be investing in the first place. Saving up some money to hopefully get up a business(in a niche/industry that the person has a good amount of knowledge in) some time in the future is still the way to go in my book.
DCA is considerable but we know that not all would be financially capable on doing things and instead they would cut-loss so that the capital that they do have left would be something be invested
on other possible options that they would look upon.For those who do have extra money for doing DCA then it could be done but this would really require soo much trust and patience yet we know
that price could deep down further and its up to someone on how they would really be looking for this one.
on other possible options that they would look upon.For those who do have extra money for doing DCA then it could be done but this would really require soo much trust and patience yet we know
that price could deep down further and its up to someone on how they would really be looking for this one.
Capital is the key, I agree. And the timing factor (all puzzle pieces falling into their right places), when do you do your DCA, as it could produce tremendous losses never to be recovered if wrong.
Then again, I do know someone who was patient enough (and probably lucky enough) and also happy with small gains + compounding, that has made it into now considerable trading order quantities, all from small start (since 2016 if I'm correct here).
Having said that, in 2017/early 2018 he's rather missed out on the bull run by trading and not investing but in the long run 5 years later, he's okay and discussing buying 100 x VOW:DE/DAX with me at the BBQ dinner.
Never used stop-loss. Go figure.
DCA is a different thing from stop-loss for me. If you are a trader you must rely more on the stop loss.
Why? Because I believe there's a lot more opportunity to trade in the future compare to holding it and another thing, most traders have a plan before opening the trade, entry point, target exit, stop loss. And some are considering the risk:reward ratio too.
Why? Because I believe there's a lot more opportunity to trade in the future compare to holding it and another thing, most traders have a plan before opening the trade, entry point, target exit, stop loss. And some are considering the risk:reward ratio too.
DCA is considerable but we know that not all would be financially capable on doing things and instead they would cut-loss so that the capital that they do have left would be something be invested
on other possible options that they would look upon.For those who do have extra money for doing DCA then it could be done but this would really require soo much trust and patience yet we know
that price could deep down further and its up to someone on how they would really be looking for this one.
on other possible options that they would look upon.For those who do have extra money for doing DCA then it could be done but this would really require soo much trust and patience yet we know
that price could deep down further and its up to someone on how they would really be looking for this one.
you can't compare trading with investing and there's another thing, trading cryptos is complicated. if you only trade bitcoin at least you have more security but the problem is that it requires a lot of capital as compared to trading altcoins which does not require having a lot of capital but is riskier compared to bitcoin. for example when trading altcoins - USDT you must also follow the BTC - altcoin pair, to be more specific if you trade LTC - USDT you also have to follow the BTC - USDT pair and the BTC - LTC pair in order to have an idea of the movement of the LTC - USDT pair at least is the conclusion I came to when trading altcoin - usdt in these years, of course I could be wrong. about the stop-loss. anyway each person has their own strategy, I rarely use stop - loss because it is not necessary, I buy and sell normally, just know the right entry point and follow the btc - alt and btc - usdt pairs
If you can learn when to walk away and stick to a tight strategy on that then it's likely fine.
This is very similar to how a lot of high return copy traders work on exchanges though and the majority of them get rekt by not learning when they should stop trading (seems like an addiction to some).
This is very similar to how a lot of high return copy traders work on exchanges though and the majority of them get rekt by not learning when they should stop trading (seems like an addiction to some).
Many will say that I'm crazy, but I have dropped stop-loss completely out of my trading. It turned into 'guaranteed loss' way too often, due to price fluctuations which can be hectic at times.
I do my 'due diligence', I buy an asset, I set my profit target and the damn thing drops just enough for it to trigger the stop-loss.
You guessed it, it later recovers and goes up past my profit target, leaving me behind to cry.
Yes, I do calculations and adjustments on my profit-to-loss ratio and the rest of it but there's no 'one fits all formula'. Not even 'one fits most of them', for that matter, that will work for me. Maybe I'm too impatient for it.
I'm way happier now.
Let me explain:
I don't like investing in crypto, I do a little bit of that with NASDAQ. I trade crypto and that's what gives me the kick, my daily dose of adrenaline (if I can't ride my bike, that is
).
So, in case that the market turns against me - I become an investor until I spot an opportunity to carry out a correctly calculated DCA (I've done it enough times that now I can be fairly certain when will it move in my desired direction and that the movement will be enough to recover and close the deal in green).
Admittedly, sometimes it takes weeks before that opportunity shows up, but it always does - I just need to be ready for it and have the required funds available.
It requires a lot of reserve, but hey - it goes to show that the 'up to 5%' rule really makes sense.
Anybody on board?
I do my 'due diligence', I buy an asset, I set my profit target and the damn thing drops just enough for it to trigger the stop-loss.
You guessed it, it later recovers and goes up past my profit target, leaving me behind to cry.
Yes, I do calculations and adjustments on my profit-to-loss ratio and the rest of it but there's no 'one fits all formula'. Not even 'one fits most of them', for that matter, that will work for me. Maybe I'm too impatient for it.
I'm way happier now.
Let me explain:
I don't like investing in crypto, I do a little bit of that with NASDAQ. I trade crypto and that's what gives me the kick, my daily dose of adrenaline (if I can't ride my bike, that is
).So, in case that the market turns against me - I become an investor until I spot an opportunity to carry out a correctly calculated DCA (I've done it enough times that now I can be fairly certain when will it move in my desired direction and that the movement will be enough to recover and close the deal in green).
Admittedly, sometimes it takes weeks before that opportunity shows up, but it always does - I just need to be ready for it and have the required funds available.
It requires a lot of reserve, but hey - it goes to show that the 'up to 5%' rule really makes sense.
Anybody on board?
Jump to: