How can you manage potential losses during a crash - page 11.

o_e_l_e_o

legendary

Activity: 2268

Merit: 18748

Quote from: Kakmakr on February 04, 2018, 02:43:32 AM

What I have noticed lately, is that the price is dropping within a $500 margin daily and then recovers.

Quote from: odolvlobo on February 04, 2018, 04:24:03 AM

There is no reason to believe that this pattern that you claim to see will continue. It is a bad idea to base an investment strategy on it.

Hindsight is 20/20. Anyone can look at what the market did last week and see how to profit from it. These is absolutely zero reassurance the market will continue to behave like you want it to.

Tanaudi04

newbie

Activity: 28

Merit: 0

Quote from: Kakmakr on February 04, 2018, 02:43:32 AM

The most common answer to this question will be to hoard and to wait for the correction to reduce or elimate your potential losses.

My suggestion to reduce potential losses, might sound a bit controversial, but it might just work in the current environment.

What I have noticed lately, is that the price is dropping within a $500 margin daily and then recovers.

So in theory, If you were one of the people who bought coins at say $18 000, and IF you sold now at say $9000, you would have lost more or less $9000.

My suggestion : Use these daily crashes to your advantage. Buy more coins when the price falls with $500 and sell when the price goes up with $500 again. After trading fees, your profit will be anywhere between $450 to $490 per coin/day.

Take the profit, put it aside and repeat this strategy until you have chipped away at the potential loss that you would have made.

Day 1 - $9000
Day 2 - $8550
Day 3 - $8100
Day 4 - $7650
Day 5 - $7200
Day 6 - $6750
Day 7 - $6300
Day 8 - $5850
Day 9 - $5400
Day 10 - $4950
Day 11 - $4500
Day 12 - $4050
Day 13 - $3600
Day 14 - $3150
Day 15 - $2700
Day 16 - $2250
Day 17 - $1800
Day 18 - $1350
Day 19 - $ 900
Day 20 - $ 450
Day 21 - $ 0

In 3 weeks, you can eliminate any possible losses, if you follow this example. This is definately not a guaranteed recipe for success, but given the current situation, this might just work. Cheesy

Not good idea though! But this strategy was really a thing to others but it is so risky you know. Why not do this strategy when the altcoins is uptrend. This will give you positive results rather risk of losing money during downtrend. Imagine your Day 1 is 9000 and day 2 is 9450 and so on. The best strategy today is Hold and wait for the green day.

nlcars

member

Activity: 140

Merit: 22

What you do and suggest is the best way to cover up your losses, this is the system how they work in wall street too. They are buying and selling in blocks and do this while the stocks are in accumulation mode each time they rise or fall.

kevoh

full member

Activity: 448

Merit: 110

A lot can happen in 20 days that will mess up your theoretical strategy! What if a huge negative news comes in and the price drops $1500 or more, and then instead of recovering the following day, it drops $500 more! How does one use your suggestion to counter the loss especially when fear leading to panic selling is stronger than most strategies in a bearish market?

odolvlobo

legendary

Activity: 4466

Merit: 3391

There is no reason to believe that this pattern that you claim to see will continue. It is a bad idea to base an investment strategy on it.

Kakmakr

legendary

Activity: 3542

Merit: 1965

Leading Crypto Sports Betting & Casino Platform

The most common answer to this question will be to hoard and to wait for the correction to reduce or elimate your potential losses.

My suggestion to reduce potential losses, might sound a bit controversial, but it might just work in the current environment.

What I have noticed lately, is that the price is dropping within a $500 margin daily and then recovers.

So in theory, If you were one of the people who bought coins at say $18 000, and IF you sold now at say $9000, you would have lost more or less $9000.

My suggestion : Use these daily crashes to your advantage. Buy more coins when the price falls with $500 and sell when the price goes up with $500 again. After trading fees, your profit will be anywhere between $450 to $490 per coin/day.

Take the profit, put it aside and repeat this strategy until you have chipped away at the potential loss that you would have made.

Day 1 - $9000
Day 2 - $8550
Day 3 - $8100
Day 4 - $7650
Day 5 - $7200
Day 6 - $6750
Day 7 - $6300
Day 8 - $5850
Day 9 - $5400
Day 10 - $4950
Day 11 - $4500
Day 12 - $4050
Day 13 - $3600
Day 14 - $3150
Day 15 - $2700
Day 16 - $2250
Day 17 - $1800
Day 18 - $1350
Day 19 - $ 900
Day 20 - $ 450
Day 21 - $ 0

In 3 weeks, you can eliminate any possible losses, if you follow this example. This is definately not a guaranteed recipe for success, but given the current situation, this might just work. Cheesy

Topic: How can you manage potential losses during a crash - page 11. (Read 1189 times)