I cringe every time a new trader asks me in our live Q&A channel whether or not that should exit some horrible position at ~10%, ~15%, or even ~20% losses. Stop-loss is everything for a trader and if you don't have some grasp on how to mitigate risk your just gambling.
The moment you can mitigate risk effectively is the moment you become a consistently profitable trader!
http://www.wallstreetcrypto.com/2014/01/mitigating-risk-one-thing-you-need-to.html
The moment you can mitigate risk effectively is the moment you become a consistently profitable trader!
http://www.wallstreetcrypto.com/2014/01/mitigating-risk-one-thing-you-need-to.html
Read that link and rather interesting.
I cringe everytime I hear a newbie/or try-hard expert trader using stoploss' (or charts for that matter). The moment you use charts as your primary entry/exit points tis the moment you are just gambling and will never be a longterm profitable trader.
Been in the trading game awhile, yet to meet a wealthy chartist, and yet myself to use a % stop loss strategy.
The % stop-loss example was used here in order to cater to a more general audience, more advanced stop-loss techniques will be coming to the site soon.
But I was afraid mentioning more advanced stop-loss techniques may convolute the point of the article which is that stop-loss is the one and only means to becoming a profitable trader.
As mentioned in the article, even the most primitive stop-loss techniques can be used very successfully. Unfortunately, as mentioned in previous comments many exchanges in the 'crypto-biz' don't offer a platform that allows for reasonably seamless management of more advanced stop-loss techniques.
So if you have found a way to execute something in an effective way more power to you, but for your average reader, % stop-loss is still effective.
There are many varieties of stop-loss. A % stop-loss is the most basic, but better than nothing. The hard part most people find with stop losses is actually sticking to them - they instead often cancel the stop-loss and turn to "hope" that the trade will turn round into a winner
