Never sell for a loss - is a Myth !! - page 6.

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Quote from: Mauser on December 05, 2021, 03:04:23 AM

This is why I think "Never sell for a loss" is a myth and we should always use a stop loss and play safe with a good risk to reward strategy.

As a rule, such a mistake in trading is made by beginners who are psychologically not ready to fix a loss. Here it is necessary to understand to what level of support the price will decrease, and at what price it will be possible to buy the coin again. In addition, they lack experience and they do not understand that they will still have a lot of opportunities to buy a coin at a better price.

pawanjain

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Quote from: RealMalatesta on December 06, 2021, 08:42:09 AM

I would assume that if you buy at 10 dollars, and it goes to 9 dollars, then you buy some more and now your average is 9.5, so you could make a profit with very little up, if it goes to 8 then you buy same amount and now you have 8.75 average, if it goes to 7 then you buy again and you have 7.87 average, and if it goes to 6 then you buy more and have 6.93 and by the time it is 5, you buy the equal amount and you get yourself to 5.96 levels.

It means, now you own a lot more, and as soon as it hits 6 you are in profit, and even more profit than you would have otherwise because you invested more as well. If it ever goes to 12, you are now in 2x profit, instead of your 10 going to 12 with just 20% profit. Isn't that better? Never sell for a loss is not a myth, and DCA is the greatest way to use that to your advantage and make money as well. I have done it for years, it has been working great for me.

It was the same strategy I applied in one of my trades. I kept on doing DCA to a point where I was mostly out of money.
I didn't have much to invest more and do DCA and the biggest mistake was it was a futures trade.
Then the sudden market crash occurred and my trade got liquidated. I know I shouldn't have done DCA in a futures trade.
But I guess I learnt my lesson.

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Quote from: cabron on December 04, 2021, 08:12:10 AM

The ones who could read the chart I guess will decide what's best to do when the prices go downwards. If they see the price could go further below $8, maybe he will sell and then buy back at $5. He would prefer to do it that way by taking advantage of the bear trend. Having more coins worth $5 each will make the trader profit still after it if the price pushes up again. But If it's an altcoin, it might not be about the myth which somehow only applies to BTC.

I agree with you because sometimes i did that kind of strategy but it depends on a coin you trade. If a coin has a potential to recover and if you bought at $10 and suddenly the price drop to $9,$8,or $7 for me better to sell and buy back when the price continue to decrease to accumulate more coins but the problem is, when you bought at $10 and sell at $8 then suddenly price went up more than $10 for sure you will regret it. Crypto market is really risky that's why we should be careful and know how to analyse the market graph/indicators.

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Quote from: pawanjain on December 04, 2021, 07:23:16 AM

Assuming you have bought a coin at $10 and the price goes down to $9 but you don't sell.
You could have placed a stop loss at $9 but you take "Never sell at a loss" so seriously that you decide to not put a stop loss.
The price goes down to $8 but you are too good at HODL. Suddenly the market crashes and the price goes down to $5.
You could have limited your losses at $9 but now your portfolio is down by 50%.
Now the price has to go 100% so that you breakeven with no loss no profit whereas you could have bought back at $5 and gained potential profits using a stop loss.

I would assume that if you buy at 10 dollars, and it goes to 9 dollars, then you buy some more and now your average is 9.5, so you could make a profit with very little up, if it goes to 8 then you buy same amount and now you have 8.75 average, if it goes to 7 then you buy again and you have 7.87 average, and if it goes to 6 then you buy more and have 6.93 and by the time it is 5, you buy the equal amount and you get yourself to 5.96 levels.

It means, now you own a lot more, and as soon as it hits 6 you are in profit, and even more profit than you would have otherwise because you invested more as well. If it ever goes to 12, you are now in 2x profit, instead of your 10 going to 12 with just 20% profit. Isn't that better? Never sell for a loss is not a myth, and DCA is the greatest way to use that to your advantage and make money as well. I have done it for years, it has been working great for me.

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Quote from: pawanjain on December 04, 2021, 07:23:16 AM

This is why I think "Never sell for a loss" is a myth and we should always use a stop loss and play safe with a good risk to reward strategy.

Having a stop loss strategy is a must to avoid further losses. However I think it depends on the coins that you're going to trade because there are coins that are likely to have a huge dump and might hard managing to recover back.

But if the coins are established and proven to be profitable for holding it for long period then selling would not be needed. Remember that you cant get back what you have lost if you already sell but if you wait there's a chance to profit from it though it really takes time.

Hence, it depends on the coins and your tolerance seeing your assets losing in value.

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I've also experienced something like that, we feel sorry to be sold with the expectation that the price will immediately return to the top, but what happened was the opposite, and in the end I was psychologically disturbed and finally I couldn't think clearly. since then I have to place a stop loss whatever happens because of the experience I've had, even though sometimes after hitting the stop loss the price goes up again

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Quote from: EdenHazard on December 05, 2021, 09:25:45 AM

You forgot the essential thing.

to accumulate by keep buying everytime it goes down!

After talking about selling at loss, people don't buy and accumulate when it's necessary during the dip. They don't buy on that time because they think that it will go lower. Well, that's okay if they think that it's going to become lower, they can set their trades at specific lower prices and as well as set it if ever the price goes up if they're about to buy. But usually, many of them don't buy the dip and likes to buy when the price of bitcoin and any other altcoins is on top.

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Well, bring advised never to sell at a loss I'd not a myth in my honest opinion, but we all should also know that sometimes, selling at a loss is the only way to prevent loosing more money most especially, when a project isn't doing well at all.
And for project that turned scam, you can't continue to hold just because some one told you to never sell at a loss, if you continue to hold in a situation like this, you definitely going to loose all your money.

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Quote from: pawanjain on December 04, 2021, 07:23:16 AM

I have heard many people say that never sell for a loss but what does it actually mean ?

Assuming you have bought a coin at $10 and the price goes down to $9 but you don't sell.
You could have placed a stop loss at $9 but you take "Never sell at a loss" so seriously that you decide to not put a stop loss.
The price goes down to $8 but you are too good at HODL. Suddenly the market crashes and the price goes down to $5.
You could have limited your losses at $9 but now your portfolio is down by 50%.
Now the price has to go 100% so that you breakeven with no loss no profit whereas you could have bought back at $5 and gained potential profits using a stop loss.

This is why I think "Never sell for a loss" is a myth and we should always use a stop loss and play safe with a good risk to reward strategy.

It depends on how you look at things, since this is something that people actually do then it is not a myth but a reality, however if you are a trader then I agree with you, this attitude of never wanting to sell whatever coin that you bought for a lower price than what you bought is a mistake, and I think this comes from a very strong desire people have to be right, not understanding that in the market the most important metric to measure your success is not how many trades you have won or your accuracy rate, but the money you have earned from the markets.

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Quote from: Cling18 on December 05, 2021, 08:59:45 AM

Things will depend on how we believe in our holdings or how we predict the next movement of it. We could base things on how we do technical analysis and on what we want to achieve based on our target goal. There's no specific price to sell and no specific time frame because we all have our different goals. Crypto investment has lots of risks and our profit would depend on how we're going to deal with every market situation.

It would be a never ending speculation and movement presumptions yet this market is always been unpredictable and ever you do make out some decision then it will vary or depend on something you do believe whether it do goes for technical aspect or would go to
fundamentals and that would surely vary and selling for a loss? You cant really say such thing because human beings
are way too emotional and also it is really easy to be influenced.

Issa56

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I like your post because what you said is just the fact, but think about you buying a coin with 10$, then you set your stop lose at 8$ and it got triggered and that hitting 8$ the coin pump back to 10$ then 15$ then 20$. Don't you think you will endup regretting why you use stop lose.
Seriously am not against using stop lose, but I don't know if this is happening to only immediately my stop lose have been triggered, then the coin will start pump so I later noticed that using of stop lose is just like wasting of money then I stop. actually some people use it and it works for them but I don't have to follow other peoples strategy, I have to follow what works for me so I don't use stop lose again, but I always advise newbies to make use of it because they don't really know much about market yet and they might not have the mind of seeing there money reducing.

EdenHazard

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You forgot the essential thing.

to accumulate by keep buying everytime it goes down!

so your 'never sell for a loss' might be more worth it.
as you are going to grab profit after profit , no matter how low it goes!
if you have an experience doing this , you'll know how satisfying it is when it goes backup and you are on top of the moon!
give it a try and tell me again later how's good is that.

p.s : you need a tight money management as you cant continuously buying allin one but partially.

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Things will depend on how we believe in our holdings or how we predict the next movement of it. We could base things on how we do technical analysis and on what we want to achieve based on our target goal. There's no specific price to sell and no specific time frame because we all have our different goals. Crypto investment has lots of risks and our profit would depend on how we're going to deal with every market situation.

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It is very important. In general, if you are confident in your specific prediction, you need to stand up to the end.

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Quote from: Peanutswar on December 05, 2021, 03:17:17 AM

People get carried by their emotions and this might affect their decision making this is the reason why investment and trading is part of the risk to losses an assets. This is a common mistake and regret me its ideal to have a trading plan not all the time we can assume that this coin might get a good comeback of an asset sometimes cutting losses is one of the best decisions too.

Indeed, we can't assume that everything will be okay and we can just only make a profit over losing some. But unfortunately and in most of the old stories by the investors and traders, they experience losses even they are careful. We could think that there are no exemptions to this and we all have to face the reality.

That is why before investing, we must be aware and must prepare for the consequences we face later where losing is one of them. But I guess we don't weigh this as the reason to stop, instead, we consider this as a reason to get more aggressive and to further enhance market knowledge.

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Quote from: pawanjain on December 04, 2021, 07:23:16 AM

I have heard many people say that never sell for a loss but what does it actually mean ?

Assuming you have bought a coin at $10 and the price goes down to $9 but you don't sell.
You could have placed a stop loss at $9 but you take "Never sell at a loss" so seriously that you decide to not put a stop loss.
The price goes down to $8 but you are too good at HODL. Suddenly the market crashes and the price goes down to $5.
You could have limited your losses at $9 but now your portfolio is down by 50%.
Now the price has to go 100% so that you breakeven with no loss no profit whereas you could have bought back at $5 and gained potential profits using a stop loss.

This is why I think "Never sell for a loss" is a myth and we should always use a stop loss and play safe with a good risk to reward strategy.

In this case if you lose more than 50% in a night it's better to observe the market first, wrong move then you really lose 50% in a night. But it's different story when the coin you invested lose 50% in a night then you HODL to recover to minimize your losses. it's good to put stop loss function when the coin only lose about 5-10% because it's make you to think about the next strategy about the coin movement.

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Quote from: pawanjain on December 04, 2021, 07:23:16 AM

This is why I think "Never sell for a loss" is a myth and we should always use a stop loss and play safe with a good risk to reward strategy.

I do understand what you are trying to say, having a stop loss is a standard procedure when you are trading in any traditional market as the recovery might take a long time, but when it comes to cryptocurrency market, the market can go in either direction and will recover in a short period of time, so i never dare to put a stop loss in cryptocurrency trading, but if you are aware that a major correction is going on then you can sell your coins and wait for the bottom.

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People get carried by their emotions and this might affect their decision making this is the reason why investment and trading is part of the risk to losses an assets. This is a common mistake and regret me its ideal to have a trading plan not all the time we can assume that this coin might get a good comeback of an asset sometimes cutting losses is one of the best decisions too.

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Quote from: pawanjain on December 04, 2021, 07:23:16 AM

This is why I think "Never sell for a loss" is a myth and we should always use a stop loss and play safe with a good risk to reward strategy.

I agree with you that never selling at a loss is the wrong advice. If we follow it without thinking we can be stuck in a lot of bad investments. There are two reasons why an investment can drop in price. First, the overall market is tanking and sending every asset down. At this point our investment can still be a good opportunity and selling is a bad idea. The second reason would be that investors lost confidence in the investment. At this point it would be better to sell because we don't know if it will ever recover.
To say never sell with a loss limits our actions to much. As good investors and traders need to think freely, without having past losses in our mind. Also we can get tax benefits from a loss and offset future gains to save money.

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Quote from: airdata on December 05, 2021, 01:20:09 AM

If i buy a coin with $10 and after my buying if this coin price is $9 then hold is better option. But if i see that for market crushing it price has $9 then i think sell is best option becouse have 95% chance for re entry, means i can buy again this coin with low price becouse in every market crushing all altcoin is down 15-40% also i want to try this strategy for every crushing.

Stop loss is very important to be on a safer side if a stop loss is placed at $9, on many occasions price of bitcoin crashed with a high volatility in a jiffy the price is already in red with reference to recent dump on 03/12 of BTC/USD obviously this will lead to liquidation of account of many future traders especially high leverage traders.
When Stopped out by the price and I move on and wait for another opportunity to open and place another trade because I had been hunted on several occasions as a margin trader while trading without a stop loss.

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