Shahazadafzal Bhai, You are absolutely right. What happened with Luna is an eye opener for all crypto community. My suggestion is to always use stop loss while trading or even when you are holding your funds in any exchange becuase that is the only way to protect your portfolio from total loss.
You didn't give any suggestion to stakers. Because many are those who just buy the terra to stake and to get airdrops. Like you said in the previous posts that it takes 14 days to get unlock. It means we should never stake our portfolio?
Any investment or trading without risk management is gambling.
It means you are saying if anyone has bought Bitcoin. And just think that he will hold it and don't make the stop loss it means it is gambling. I don't think so. You are connecting two opposite 90° turn overs.
Therefore I said in one of my post that. If you have any investment so choose different projects don't invest in one project. And only invest those yani jo ap bardasht kar skty hen ky loss ho bhi to koi masla nai h.
The crash of Terra Luna vindicated that Staking is extremely high risk investment because its risk is not manageable.
You are talking about Diversification of portfolio which is also part of risk management strategy, In simple words it means,
DON'T PUT ALL YOUR EGGS IN ONE BASKET.Generally beginners in crypto or in stock trading often fail to understand the benefit of using stop loss until they burn their total capital when market crashes. Stop loss means limiting your losses which is fantastic tool to protect your account from total collapse. All Fund managers who manage funds of Billion of dollars use this tool. Let's assume I am holding 1 Bitcoin in my portfolio and its current price is around 30K, if i place my stop loss at 25K which means limiting my loss to 5K. If God forbid Bitcoin price falls down to 15K then my loss would be 15K which is huge amount.
Trailing stop loss is a modified tool which is dynamic stop loss and moves up and down with movement of price of asset you are holding or trading in. Please find details in below given link.
There is a fine line between gambling and investing which is important to understand, investment without risk management strategy is like gambling :
Investing and gambling both involve risking capital in the hopes of making a profit.
In both gambling and investing, a key principle is to minimize risk while maximizing reward.
Gamblers have fewer ways to mitigate losses than investors do.
Investors have more sources of relevant information than gamblers do.
Over time, the odds will be in your favor as an investor and not in your favor as a gambler.https://www.investopedia.com/articles/trading/08/trailing-stop-loss.asphttps://www.investopedia.com/articles/basics/09/compare-investing-gambling.asp#:~:text=True%2C%20investing%20and%20gambling%20both,and%20over%20the%20long%20run.
