Topic: How can you manage potential losses during a crash - page 9. (Read 1190 times)
While already losing because of a crash, hodling is my only option for whatever cryptocurrencies i have in my portfolio. I know that their prices are affected due to bitcoin's crash but i can still wait until bitcoin come back again.
This is mathematically correct but we are not living in a perfect world this strategy is really dangerous and most likely you will still lose money.
If you want to average down do your best to understand the charts and try to average down you can also always short bitcoin if you think that the price will continue to fall down.
If you want to average down do your best to understand the charts and try to average down you can also always short bitcoin if you think that the price will continue to fall down.
Well it may work a little if you have the whole day and all.of your time watching the market waiting for those mini ups and down but in general, yeah its still better to keep steady. It may take a but longer but eventually you'll still catch up with your losses once btc starts moving positively
I do not really have the solid numbers but I feel it is not a good strategy in the long run,,, especially since I use the charts of a couple of coins I look at. Imagine if you did this at the start of the "crash", you would have kept buying coins as they got lower, and by now ran out of funds as the prices kept going lower. Of course, if they all rise again, then you suddenly become a genius for making more with each rise. But the real genius would have been the one who used stop losses, and bought in at the very bottom.
Stop losses are the only way to limit and manage losses.
Stop losses are the only way to limit and manage losses.
Well, in every failure that I made, I'd rather choose to start all over again than stop and accept the fact that I've failed. It is better to try again because it is just one opportunity that have been lost, and there are millions of opportunities out there that is waiting for all of us. So, I prefer to stand up and keep on trying until I succeed.
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!
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,
This is mathematically correct but we are not living in a perfect world this strategy is really dangerous and most likely you will still lose money.
If you want to average down do your best to understand the charts and try to average down you can also always short bitcoin if you think that the price will continue to fall down.
If you want to average down do your best to understand the charts and try to average down you can also always short bitcoin if you think that the price will continue to fall down.
We actually can get advantage during this negative market condition. We can do opportunity sell, my strategy will looks like hoarding too, sell coin to fiat then wait until the peak of the crash then buy coin with all your capital. Then we can get more coin than usual, for contrarian people this condition is not so bad.
It is quite a good idea, but you shouldn’t just rush in and buy once you see that the price is low. You have to be careful when doing these kind of things. Let’s say that you bought at the price rate of $18,000 before price got down to $15,000. You shouldn’t see it as an opportunity immediately, cause you don’t even know if it’s going to be down losing some more values. So best is to wait and have patience and see what happens next, cause the one you already bought is enough. If price reaches lowest and starts recovering, then you buy more at cheaper rate before it reaches highest.
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!
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!
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.
Nothing new in my view because if you are ready to face the risks against day trading then you can do at any time even we have not bought at higher prices and not facing any potential losses too. But honestly, I am not suggesting anyone to go for day trading as it is a highly risky one rather than simply buying and holding enjoy the maximum benefits of bitcoin trading.Moreover, simply holding among any corrections/ crash down will ensure you will be having some share which will be giving you profits when market will be recovering. If you have some extra capital then you can buy at dips to get better buying rates. If you do not have extra capital then you can simply watch market and with respect to bitcoin you will be in safe hands always so bitcoin prices will surpass your buying prices to get you profits for sure.
To manage potential loses during a crash is to have a variety of investments so that you don't need to put all your eggs in one basket. A good financial strategy on how to diversify your earnings could eliminate the chance of total bankruptcy.
The important thing is don't cutlose because it will make you lose, finance management is an important thing in investment, when you have a good financial management of course you will not allocate all your money to bitcoin only but on other investments as well and have remaining funds for back up plans and savings, with that even though bitcoin prices go down you still have saving of funds and other investments to cover losses if you do cutlose but my advice is don't do cutlose, because bitcoin prices will definitely recover, you can go to another investment while waiting for bitcoin price to go up and you will not get any loss, During crash, best is to hold. Just be patient.
I really want to understand the angle the OP is bringing this anyway. We are still in a downtrend and until this changes, then we will still keep going through the little up and down which anyone can make use of to make some money in that process. This though is quite risky for someone who cannot read the market to know when a trend is changing and end up selling for a lower price only to discover the value keeps increasing, that would pretty suck for such individual. legendary
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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.
I’m surprised OP’s hasn’t got more merits as he has explained a sure system for becoming a millionaire. He has forgot to say that you can also make a lot of money in a bullish market, as it also has little dips before continuing the upward trend.So, you only need to sell before the little dip comes and rebuy when it's finished and goes up again.
It can also be applied in flatline markets, as they also have little ups and downs, so you only need to sell before it starts going down and to buy before it starts going up.
Don't forget that this not only can be applied to bitcoin, it can be applied to many other assets, like stocks.
... this might just work. 
Or not. As any crystal-ball strategy.
Losses are part of the cryptocurrency industry because this are the risk that is included in trading. Price crashes are unpredictable and maybe the only way to prevent this is by carefully analyzing on which tokens you are investing.
To manage our potential losses during crash is do not put all your money in investment atleast a 50% of your money.In trading that is very risky we need to know how to manage it very well especially in terms of crashing down of price.Do not put all your money in investing to avoid bankcruptcy when it goes down.
I am a bit of a risk taker, so I tried this strategy. I bought a coin at $16k when the price was going up last year. Then I went on holiday for a few weeks and when I returned, I saw that the price went down considerably. <$10k> So, I had a choice :
1. Hoard and wait for the price to recover to $16k or,
2. Day trade on the small dip & corrections, within a $400 to $500 margin and reduce my potential losses on the $16k.
I decided to try option 2. It took some good timing, but I managed to trade my way out of trouble and I managed to make a little profit.
The current price is floating between $8000 and $9000, so there are some room for profits, if you know what you are doing.
1. Hoard and wait for the price to recover to $16k or,
2. Day trade on the small dip & corrections, within a $400 to $500 margin and reduce my potential losses on the $16k.
I decided to try option 2. It took some good timing, but I managed to trade my way out of trouble and I managed to make a little profit.
The current price is floating between $8000 and $9000, so there are some room for profits, if you know what you are doing.
Actually what you quoted is really the principle of trading , buy more when market selling cheap but currently nobody have no idea how market will go.
This method require lot of attention and lot of cash liquidity, suppose you bought it at $8000 then market dipped at $7000. Now be ready to buy one more coin at $7000 too.
I think what you are proposing is known as "Averaging down" strategy in trading/investing. If something goes continually down as you cannot predict for bitcoin then this will become worst strategy. This works good when you are certain that dip is just momentary and in long term market will recover.
Why worry about losses, just put same in stake that you can afford to lose and do not further strain the money.
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.
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.
That’s actually a great strategy you have put up and i will try to integrate it to mine as well. FOr me the best way to cur your losses though is to hold and wait and sell some of it only if you are in really dire need of an influx of money to keep you surviving so you can hold out until the crash pass you by. It kight not be best for some but that has worked for me for as long as I can remember
if you invest your money in a certain company, there is a risk if it will go higher and bigger or it will be a lose. being invested in the company, there is no assurance that you will gain or lose money. but of course, before investing in a company, you must aware of certain things about it. how can i manage, simple, i will pull out all my money and investments so that i will not be bankrupt. at least half of my investments will return to me.
good idea but very risky. we see cryptocurrencies dropping its price everyday but any time it would go up so selling will put you to high risk. not everything you plan will work so it is best to hold now or if you want risk you can use the idea.
I am a bit of a risk taker, so I tried this strategy. I bought a coin at $16k when the price was going up last year. Then I went on holiday for a few weeks and when I returned, I saw that the price went down considerably. <$10k> So, I had a choice :
1. Hoard and wait for the price to recover to $16k or,
2. Day trade on the small dip & corrections, within a $400 to $500 margin and reduce my potential losses on the $16k.
I decided to try option 2. It took some good timing, but I managed to trade my way out of trouble and I managed to make a little profit.
The current price is floating between $8000 and $9000, so there are some room for profits, if you know what you are doing.
1. Hoard and wait for the price to recover to $16k or,
2. Day trade on the small dip & corrections, within a $400 to $500 margin and reduce my potential losses on the $16k.
I decided to try option 2. It took some good timing, but I managed to trade my way out of trouble and I managed to make a little profit.
The current price is floating between $8000 and $9000, so there are some room for profits, if you know what you are doing.
To manage potential loses during a crash is to have a variety of investments so that you don't need to put all your eggs in one basket. A good financial strategy on how to diversify your earnings could eliminate the chance of total bankruptcy.
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