How can you manage potential losses during a crash - page 6.

matanglawin

full member

Activity: 372

Merit: 100

The Organic Growth Token

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 can simply manage the potential loss by holding and avoiding to sell. And in order to earn huge profit in the future, invest now since its market value is still low which is an opportunity that will yield to assured profit in the future. Fluctuations are innevitable since Bitcoin along with other cryptos are given to be volatile. As such, holding is the best thing to do whenever its market value is falling.

yohaneshs

member

Activity: 406

Merit: 11

When you're working as a trader in crypto or forex then you should know a business plan. For me, all trader can choosing as a day trader or a long term trader.

If you have choosen as a day trader so always put maker or stop loss in every opened position. Else if you choose long term so you should read and analyze chart in the last week and last month. What's trend now and supply demand or support resistance in market before choosing target price and dont forget to read news in big country.

For me as a long term trader looking at chart in the past year until the first month of this year is too risky to put order because trend is too high so just waiting for the price down and open position in support area.

stomachgrowls

hero member

Activity: 2982

Merit: 790

Quote from: Shanmatthew on February 11, 2018, 05:47:17 AM

The best way to manage losses is to find and discover the reason why it happen, and overcome it or better, don't let it happen again by thinking of other way for the betterment of your profits.

This is how we do should treat our mistakes which we should learn from them instead of being discourage to continue because this would be always a stepping stone to success because all people who do start from the beginning do really normally commit this mistakes and for those who accept and improve theirselves would really sustain for long term.

Quote from: Sled on February 11, 2018, 07:14:44 AM

Quote from: Shanmatthew on February 11, 2018, 05:47:17 AM

The best way to manage losses is to find and discover the reason why it happen, and overcome it or better, don't let it happen again by thinking of other way for the betterment of your profits.

If you made a mistake in trading or buying coins then it is best like you said to discover the reason why that thing happen and that is how you are going to realize your mistakes and don't let your mistakes feel you down because be positive that you made a mistake because that means that you are trying and the best thing to do is make it as a basis for your next trading decisions.

Learning and discovering on where those mistakes is the most important for you evolve on what you are doing. Focus on things and you will succeed.

Similificator

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Activity: 882

Merit: 403

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'

Mariela

jr. member

Activity: 224

Merit: 2

Crashing of value in our industry is normal.
Better to do is to hold it for a while.
Due to luck of information and knowledge some investors are losing their money because they don't know what to do and unthinking behavior or cause feel panic.

Sled

hero member

Activity: 1680

Merit: 535

Bitcoin- in bullish time

Quote from: Shanmatthew on February 11, 2018, 05:47:17 AM

The best way to manage losses is to find and discover the reason why it happen, and overcome it or better, don't let it happen again by thinking of other way for the betterment of your profits.

If you made a mistake in trading or buying coins then it is best like you said to discover the reason why that thing happen and that is how you are going to realize your mistakes and don't let your mistakes feel you down because be positive that you made a mistake because that means that you are trying and the best thing to do is make it as a basis for your next trading decisions.

Shanmatthew

member

Activity: 243

Merit: 10

The best way to manage losses is to find and discover the reason why it happen, and overcome it or better, don't let it happen again by thinking of other way for the betterment of your profits.

prtty2gal2

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Activity: 1092

Merit: 523

Quote from: zanezane on February 06, 2018, 02:43:18 AM

Quote from: Kakmakr on February 06, 2018, 01:39:34 AM

Disclaimer : I do not follow this strategy with credit, but rather with disposable savings. I would not recommend this strategy for people who are funding their Bitcoin investment with credit.

It is a very bad idea to fund any investment with credit and any other form of debt. Bitcoin is a very high risk investment and this strategy fall in the same category.

DO NOT fund your Bitcoin investment strategy with DEBT!

We can't actually blame the people who'll loan to others just to invest in bitcoin now because the price tho is really tempting to buy and I guess no one wants to be left out before it goes to the moon again. However, when we loan some money make sure you'll return it in time and of course don't make it a habit,

That is the actual point. There are two sides of coin, a bright one and a dark one. Bitcoins are showing both right now. One side, you are seeing bitcoins as seller who have bought bitcoin at some higher prices and now you are wishing bitcoins to come back again at high altitude. There is second scene where buyers are so happy to get bitcoins at such cheap price, they want price to go down more.

Kakmakr

legendary

Activity: 3514

Merit: 1963

Leading Crypto Sports Betting & Casino Platform

A lot of people seem to think that it is a better strategy to just wait for the price to reach your buying price and then to sell. I am not the kind of person that watch the grass grow. I am a risk taker and Bitcoin is a high risk investment. I also want to take control of a situation, so I like to manage the risk.

In any given day, the price of bitcoins goes up and down and I want to jump on that opportunity to chip away at the gap between my potential loss I could have made or the reduction of that loss that I manage with day trading. In any event, it is still a waiting game.

el kaka22

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www.Crypto.Games: Multiple coins, multiple games

Quote from: jjacob on February 04, 2018, 05:54:16 AM

Quote from: odolvlobo on February 04, 2018, 05:24:03 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.

Not really. It is an established investment strategy to follow, in a highly volatile market with no real up/down trend. If your view is that the price is going to crash violently, or going to shoot up rapidly, it will not work. But in current volatile markets, this is a good strategy to follow. Most traders use it even in equity markets, while dealing with volatile stocks.

It is a good strategy but it also requires being extremely careful as the market can decide to turn anytime it wants which may end up not being in your favor unless you are able to read such situations and make decisions based on them anyway. For a common man, this may be a crazy one to do as they can even end up losing more in this case if they cannot really detect a bull trend or best time to sell and prefer just looking at the $500 margin alone.

Quote from: nlcars on February 04, 2018, 05:32:39 AM

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.

This is not wall street bro! This is crypto market, a non-controlled market, so I would not want to bring in the ideology of wall street which is why it is crazy sometimes how even indicators end up giving you the wrong signals, just because everything is centered on huge speculation with a lot of FUD. Even if one is to try this strategy, it is better to be extremely careful doing it while understanding the huge risk involved.

AjithBtc

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Activity: 1666

Merit: 276

Vave.com - Crypto Casino

Quote from: JL421 on February 08, 2018, 02:47:13 PM

I don't do anything whenever there is a fall in price I am holding my bitcoin for more than 6 months now in my wallet I have seen the price change a lot in these months but I kept patience and was always trying to control myself on not to make a stupid move till now it is working for me

What's been mentioned is the best any of the user could follow to make sure that they won't meet losses. Here exceptional users will be there, who doesn't have the mind to sell. But, due to emergency necessity sells even at the drop. Having patience and just enjoy having the bitcoins in the wallet is the best to overcome losses.

JL421

hero member

Activity: 812

Merit: 510

I don't do anything whenever there is a fall in price I am holding my bitcoin for more than 6 months now in my wallet I have seen the price change a lot in these months but I kept patience and was always trying to control myself on not to make a stupid move till now it is working for me

Improperstammer

newbie

Activity: 41

Merit: 0

the best way to manage loss is to have a cut loss / sell plan before a crash actually happens. Selling immediately to manage capital is way better than holding and watching your portfolio go bloody.

tech72

full member

Activity: 427

Merit: 100

I am pretty lazy, so what I do is during crash I sell altcoins and hold Bitcoin, and whenever I see that Bitcoin might rise I again but altcoins at low and hold my most bitcoin.

Vladv26

full member

Activity: 321

Merit: 102

You cant know what is going to happen during this 3 weeks that you say it is possible to recover any loses. Lets say you buy when the price is 8500$ and you sell them at 9000$. What if the price continues to go up and it goes up to 18.000$(your example of first price they bought bitcoin)? They remain with those 9000$ in the wallet when they could simply wait and recover all the loses in a few months. You strategy is not bad because I have seen that what you are saying is true and the price goes down with 500$ then it goes up again with 500$. But you got to be smart and know when to stop because as I said the price could go up and dont stop and you remain with your Fiat.

nelmari

sr. member

Activity: 504

Merit: 250

I think there is a huge potential in this kind of strategy but not a lot of people can follow this trail because a lot could happen in just a couple of days. But I think this is really a great way too to cover up your losses. And most people would always want the easier way, I'd be a hypocrite not to admit that because I was like that before and the reason why I changed to long term investments instead.

trickyriky

sr. member

Activity: 882

Merit: 251

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.

amaydel

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Activity: 448

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DOMINIUM - Decentralised property platform

I think the best way of managing losses during crash/correction is not selling at all. I am not really good in numbers but HODLing is what i really have in my mind in situations like that.

boonsterx

member

Activity: 112

Merit: 10

For coins with potential losses, the easier way is to hold on to them and calm them down.

I think in order not to lose your cool during a crash and panic sell your tokens, we should not loan any money

to buy any coins in the first place. By playing with the money that belongs to us and not loaned through mortgage of our homes,

we will not panic sell and will be able to handle any potential losses.

And in terms of buying, nothing beats buying when everyone is panicking.

speem28

sr. member

Activity: 546

Merit: 255

Quote from: BlackBoxRecords on February 08, 2018, 11:06:37 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

Oh, well, nice idea but terribly wrong. Basically you are saying that you can buy at mini-dips, the problem is obviously that you don't know when a dip has finished. If you want to avoid losses just sell when it has doubled your buying price instead of staying there hodling like an ass.

It doesn't really matter even though you don't know when the dip will end or start recovering, what's important is that you saw a dip, and you take this chance to add more to your initial investment and if it keeps going down, you can invest more considering you have the means to do so.

Also, waiting for your coin to double its price before selling like you said, is also the same as holding. You just don't seem to contemplate the difference about what you are saying.

Topic: How can you manage potential losses during a crash - page 6. (Read 1164 times)