Topic: Stop-Loss ideas - page 3. (Read 1408 times)
My strategy for dealing with losses is to back up my losses by repurchasing coins at a very low price. But if my funds are limited, I sell all my coins and look for the benefits of another altcoin.
Hello; I'm pretty new at trading crypto. I'm interested about thoughts and strategies about stop-loss percentages and strategies you guys use. at first I would not sell at a loss regardless my motto was "at least 5% profit, always" but if I want to trade more with a limited budget, I need to back out from certain coins even at a loss. that's why I'm interested about this topic.
Stop loss idea to me is just common sense and that is setting a limit to what you can absorbed and be decisive when you want to make decision and at the same time never be ruled by emotions because that is one common mistake in trading. But when the above is settled, you are sure to not only limit the losses but also be able to make reasonable profit from various trading activities.
Your risk here is buying coins and then hitting the stop loss from ordinary fluctuations regularly. For example, the Bitcoin price dropped to around $1800 fairly recently after a bullish period and then went drastically higher afterwards.
Stop loss is important if you're trading short-term or you don't believe in the long term prospect of the coin. But the majority of investors who are actually successful would tell you that if you don't believe in the long-term success in the coin, you're unlikely to succeed because you're playing around in a zero-sum game without a lot of expertise.
Personally I only use stop loss if the price has just risen drastically and I'm intending to sell. That way I place stop losses as it goes up and sell when a correction comes near the top.
Stop loss is important if you're trading short-term or you don't believe in the long term prospect of the coin. But the majority of investors who are actually successful would tell you that if you don't believe in the long-term success in the coin, you're unlikely to succeed because you're playing around in a zero-sum game without a lot of expertise.
Personally I only use stop loss if the price has just risen drastically and I'm intending to sell. That way I place stop losses as it goes up and sell when a correction comes near the top.
I don't know if the stop-loss mechanic is such a good idea when trading crypto; more than often one gets a coin for a certain price, then value drops 40% or so below said price, after which the price absolutely skyrockets. You would basically deny yourself a possible substantial future profit in many cases when you actually implement a stop-loss tactic.
Most of the times it will save your money, your profit.
In this game it is more important not to lose money than to make more money, don't fear missing out, if it's going down sell it, risk management is everything.
Well, it kinda depends on how you're active within the cryptomarket; if you're an active (day)trader and keeping track of trading movements on a frequent basis, than a stop-loss tactic could actually be beneficial. In this case you can ditch an underperforming coin to catch another 'train' actually leaving the station.
However, when planning to hold a coin long-term you can seriously bite the dust with that strategy; Ethereum for instance had a lot of ups and downs below $10 in 2016 before becoming an absolute monstrosity this year.
Unfortunately stop loss order is not supported by many crypto trading services. My settings where stop at loss 10% under current price that is to be followed on move up and stay static when price falls.
If you are sure about your motto to achieve five percent of profit then you don't have to worry about loss side as long as the coins are dumping like crazy. In altcoin market you can face worst dump, like 29-30% downward movement than your investment point. Thus, you can get naked with your trade at anytime in fraction of seconds. To achieve most of the stability you can decide to invest in top coins only which are raising at least in the last 24 hours of trade. This will just make sure that your coin is not gonna dump at least and you would be in the positive side of trade.
I don't know if the stop-loss mechanic is such a good idea when trading crypto; more than often one gets a coin for a certain price, then value drops 40% or so below said price, after which the price absolutely skyrockets. You would basically deny yourself a possible substantial future profit in many cases when you actually implement a stop-loss tactic.
Most of the times it will save your money, your profit.
In this game it is more important not to lose money than to make more money, don't fear missing out, if it's going down sell it, risk management is everything.
I don't know if the stop-loss mechanic is such a good idea when trading crypto; more than often one gets a coin for a certain price, then value drops 40% or so below said price, after which the price absolutely skyrockets. You would basically deny yourself a possible substantial future profit in many cases when you actually implement a stop-loss tactic.
Stop loss is very important, but the specific circumstances of specific analysis, I usually do not stop, so bad luck, then zero
Hello; I'm pretty new at trading crypto. I'm interested about thoughts and strategies about stop-loss percentages and strategies you guys use. at first I would not sell at a loss regardless my motto was "at least 5% profit, always" but if I want to trade more with a limited budget, I need to back out from certain coins even at a loss. that's why I'm interested about this topic.
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