How can you manage potential losses during a crash - page 5.

BillCoin

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Quote from: Destnhel on February 13, 2018, 07:53:52 PM

Losses shouldn't be take heartfully. We should use it as a lesson and also a weapon so it wouldn't happen again. We must learn ahead. Losses is part of trading, but it doesn't mean to make you quit.

Loses shouldn't be taking heartfully, that's true, and that's the reason you have to risk management because if you won't, you may find yourself losing more then you could afford to lose and then you will have to take it heartfully.
As said above, the best way to manage loses would be through stop loses orders, when you enter a trade, make sure you know at what point you exit the trade even if you are in a deep lose.
Always take into consideration that stop loses orders may trigger lower then expected as when the market falls it's hard to sell.

4U

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Quote from: OrangeSeller on February 13, 2018, 09:06:58 AM

Quote from: manismanja on February 08, 2018, 10:33:51 AM

I set my failure or loss by waiting for the price to go down and after that buy it again at the right moment or the right moment because the price will definitely go back up, and preferably trading do not use all the money there, you put money to overcome this loss.

Putting the whole money in one investment is not a suitable idea. Before practically starting some investments, there must be an analysis of the market, the trust factor and much more credentials for the coin or source that you are going to invest into. Only then the decision should be taken with deep concern. Losses are not strange, just follow up them with good rehabilitative skill.

Yes you are right it is not good to get mad about something you are not familiar with, if you have more option try them all as bitcoin as many as investing, trading and gambling but the best one is investing as it is risk free and you will be confidence about your profit, but try to start with small if you find it well and good then go for more investment but keep it in mind that price use to increase and decrease never sell because of low price. Patience is the only thing that will give you profit at the time to crashes in price.

jamids

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Quote from: Erza on February 13, 2018, 07:24:25 PM

Quote from: ralle14 on February 12, 2018, 04:51:20 PM

The strategy of OP is not easy to pull off because the price of bitcoin doesn't easily recover by $500 or crash by $500 every day. Imo it could work but not all the time.

That is why you should do the daily trading and be active, I believe if you have that huge bankroll it is still possible for you to make that happens because their volume on 24 hours is really much far than you can imagine. You can see big exchanges that having like billions of dollars traded on each coin, conpare to your $500 profit is really easy to do. You just need to be active on trading and thats all, no need anything more

The reason why I like to do day trading as oppose to just holding my coins is because of this reason. There is a possibility of being able to profit even if I had lost in my previous trade and the market is bearish. The small price swings are opportunities to make small profit. My intention is to earn small profit because once accumulated it would become bigger and every time I trade, I learn so it would be a great help to my next trades. I will be versatile then because I can profit in whatever market condition.

jaysabi

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Quote from: Barbarian on February 13, 2018, 11:34:49 PM

Quote from: Destnhel on February 13, 2018, 07:53:52 PM

Losses shouldn't be take heartfully. We should use it as a lesson and also a weapon so it wouldn't happen again. We must learn ahead. Losses is part of trading, but it doesn't mean to make you quit.

This is the correct mindset when trading, when you lose you must try to learn from the experience but you must try to avoid to make that the focus of your next trades, each trade needs to be done because the market tells you there is an opportunity to make money if you try instead to try to be smarter than the market then you will lose even more money as a result.

There is no science to trading crypto. People use technical analysis or momentum trading as if these are tangible, reliable things that can be counted on to perform in patterns. They're not. For the most part, patterns self-correct because any pattern can be exploited, and the first to exploit it lessen the impact of the pattern until it doesn't exist anymore. At that point, any "pattern" that persists is just a coincidence.

Barbarian

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Quote from: Destnhel on February 13, 2018, 07:53:52 PM

Losses shouldn't be take heartfully. We should use it as a lesson and also a weapon so it wouldn't happen again. We must learn ahead. Losses is part of trading, but it doesn't mean to make you quit.

This is the correct mindset when trading, when you lose you must try to learn from the experience but you must try to avoid to make that the focus of your next trades, each trade needs to be done because the market tells you there is an opportunity to make money if you try instead to try to be smarter than the market then you will lose even more money as a result.

Destnhel

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Losses shouldn't be take heartfully. We should use it as a lesson and also a weapon so it wouldn't happen again. We must learn ahead. Losses is part of trading, but it doesn't mean to make you quit.

Erza

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Quote from: ralle14 on February 12, 2018, 04:51:20 PM

The strategy of OP is not easy to pull off because the price of bitcoin doesn't easily recover by $500 or crash by $500 every day. Imo it could work but not all the time.

That is why you should do the daily trading and be active, I believe if you have that huge bankroll it is still possible for you to make that happens because their volume on 24 hours is really much far than you can imagine. You can see big exchanges that having like billions of dollars traded on each coin, conpare to your $500 profit is really easy to do. You just need to be active on trading and thats all, no need anything more

Md Saad

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Your explanation and analysis might be a helpful for everyone who are involved in this virtual platform. Basically, We have to take every step very carefully regarding facing any loses. That's why your mentioned path should be followed in terms of not getting in the losing any resource from your virtual financial world. Get alert and prepared yourself to face any type of situation.

jaysabi

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Quote from: Kakmakr on February 04, 2018, 03:43:32 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

Any time an identifiable pattern emerges, the market is efficient enough to eliminate it. There are faster, smarter, and better capitalized traders than anyone here on these boards, and they will effective price out an identifiable pattern long before you have a chance to identify one. (And this assumes trading works in predictable patterns, which it doesn't anyway.) So the only conclusion is that any pattern you think you've identified or are relying on is just a coincidence, and your reliance on it is a huge gamble. If it works out, it's because you got lucky. It's far more likely that you're going to burn yourself with stunts like this.

pisston

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Quote from: TiffanyLien23 on February 13, 2018, 01:05:35 PM

Many traders do the strategy to buy more coins at a very low price. When the market recovers rapidly and then you miss out on that. If the strategy pays off it's great but it's a big risk to take. In order to do that, just be patience and wait for the price of the coin to rise up again.

I think that all the same, if there was a crash situation, then the only way out is to wait for a positive moment, and not to sell. But nevertheless, very few traders use this strategy.

TiffanyLien23

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Many traders do the strategy to buy more coins at a very low price. When the market recovers rapidly and then you miss out on that. If the strategy pays off it's great but it's a big risk to take. In order to do that, just be patience and wait for the price of the coin to rise up again.

keycellko

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Nice strategy. I also do margin selling if i need to eliminate a loss. But usually what i do is minimize the price of the coin buy buying more when the dip comes. In a way for example in bitcoin you buy 1 for 18000 then you buy another for 15000 so you now have 2btc valued at 16500 instead of the original 18000 so you have a savings of 1500 and you can buy more just to pull back the initial investment in order for you to eliminate your losses.

Sled

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Quote from: OrangeSeller on February 13, 2018, 09:06:58 AM

Quote from: manismanja on February 08, 2018, 10:33:51 AM

I set my failure or loss by waiting for the price to go down and after that buy it again at the right moment or the right moment because the price will definitely go back up, and preferably trading do not use all the money there, you put money to overcome this loss.

Putting the whole money in one investment is not a suitable idea. Before practically starting some investments, there must be an analysis of the market, the trust factor and much more credentials for the coin or source that you are going to invest into. Only then the decision should be taken with deep concern. Losses are not strange, just follow up them with good rehabilitative skill.

Do not put all the eggs in one basket and that is why we should not go all in one investment because it will just result for getting a lot of losses so if you want to be safe then invest your money into different investments so you can minimize the risk and receive better amount of profit if their market goes up.

JoshMart

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What I do during crash is I buy more coins as much as possible. I treat it as a sale dates, but more coins for a lesser value, HOLD and wait for its value to go up again, so once you sell, you already have a greater profit. Key is be patient and don't let FUD get into you.

OrangeSeller

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Quote from: manismanja on February 08, 2018, 10:33:51 AM

I set my failure or loss by waiting for the price to go down and after that buy it again at the right moment or the right moment because the price will definitely go back up, and preferably trading do not use all the money there, you put money to overcome this loss.

Putting the whole money in one investment is not a suitable idea. Before practically starting some investments, there must be an analysis of the market, the trust factor and much more credentials for the coin or source that you are going to invest into. Only then the decision should be taken with deep concern. Losses are not strange, just follow up them with good rehabilitative skill.

pokeronlinestatus

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Quote from: manismanja on February 08, 2018, 10:33:51 AM

I set my failure or loss by waiting for the price to go down and after that buy it again at the right moment or the right moment because the price will definitely go back up, and preferably trading do not use all the money there, you put money to overcome this loss.

The only possible way of managing the potential loss during crash is to keep trying your luck in the future too. The market value keeps on changing most of the times and that you actually need to target the market at the right time and before doing that, you also need to have some plan in your mind. Get into the market at time when the market value is falling down and then stay over there till the time its value rises high.

julzcoinbit

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All I can say about this strategy as what the majority says that it just only effective for those old in crypto trade or let we say expert trader. For those newly about trading are really make confused by itself if they used this strategy, so as a newbie I also don't quietly agree of this strategy perhaps I don't have experienced enough to make myself understand in that matter.

ralle14

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Quote from: trickyriky on February 08, 2018, 12:50:12 PM

I see you have done the greatest research, and probably you know how to manage your loss during the crash. For me the best things when the market falls are not to let myself selling the coins and keep them.

It's not the greatest research almost everyone knows what to do at times like this and that is to hold which you also mentioned. No one wants to sell their investment when the price is low except for those who doesn't have any experience with bitcoin's volatility are the ones who would probably give in and sell immediately.

Quote from: Erza on February 12, 2018, 11:06:25 AM

This strategy is not fully false because there is still people doing this because they are an expert and active traders mean while like you said if newbie doing this of course they will turn out to lose more than just his coin. That is why this is not recommended for any newbie who start trading

But I can say this strategy is really work because in crypto world, there is too much volatile which is we can get our profit back in no time. And if you do not want to sell it back then you should do some more deposit equal to what your loss and do trading as well and you will get on both profit

The strategy of OP is not easy to pull off because the price of bitcoin doesn't easily recover by $500 or crash by $500 every day. Imo it could work but not all the time.

Slant

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Quote from: manismanja on February 08, 2018, 10:33:51 AM

I set my failure or loss by waiting for the price to go down and after that buy it again at the right moment or the right moment because the price will definitely go back up, and preferably trading do not use all the money there, you put money to overcome this loss.

This is really good because buying at low is best thing we do for our future, bitcoin will increase someday with price but people who lose the patience and sell at low price do bad for themselves, price is sure to increase so if you will sell at time of dump it is almost all lose, I use to hold and wait for the right time I use investment not the trading so the chance of lose is very low in my case trading does not charge high profit to the investors so investing and waiting is best option.

Erza

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Quote from: Similificator on February 11, 2018, 08:18:55 AM

Quote from: Kakmakr on February 04, 2018, 03:43:32 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

You know what man, I really do appreciate your efforts on researching and any other necessary things just to be able to share this idea of yours(strategy) to all of your co-members here in this forum. But the thing is that in my honest opinion, I think that posting this is actually doing more harm than good to our fellow members that are still new to the crypto world. The reason as to why is because obviously, crypto prices are not as easy to predict as what you are saying since it has proven itself already to be very volatile specially bitcoin. Now if some newbie who lost a lot already sees this and believes on this strategy, that newbie might even lose more than what he has already lost already. So my advice is that holding for the mean time is still the best choice for now. specially for newbies. just sayin'

This strategy is not fully false because there is still people doing this because they are an expert and active traders mean while like you said if newbie doing this of course they will turn out to lose more than just his coin. That is why this is not recommended for any newbie who start trading

But I can say this strategy is really work because in crypto world, there is too much volatile which is we can get our profit back in no time. And if you do not want to sell it back then you should do some more deposit equal to what your loss and do trading as well and you will get on both profit

Topic: How can you manage potential losses during a crash - page 5. (Read 1164 times)