Minimizing large amounts of losses then trades at some of the current prices, if the market shows a significant decline and buys back when the price falls to allow your capital to return
I applied the trading mode above personally and was a good solution to overcome the big losses
Topic: You don't loose if you don't encash (Read 857 times)
That is right if you do not close your position you are not in profit or loss. Thinking long term investment in crypto is a good idea but the same time waiting till infinity is not good. BTC went to nearly $20000 from $1000 but few people did not book the profit then it again came back to $3300. When there is bull run most of the investors become greedy.There should a proper plan for any investment I believe. If someone invested in BTC at $5000, he should book some profit at one level say $10000 and let the rest run will SL at BE. Such plan can fetch good profit to any investor instead of waiting for a long long time w/o knowing the point of exit.
Hey 
I once came across a time when I was unsure where the market is going to take us , thus I brought at a very high price , unfortunately the price came down as quickly as it climbed up.
The reason I believe I haven't lost even a single penny is because I believe you cannot loose when you don't encash.
Therefore I still believe holding for the long term can actually help you .
I once came across a time when I was unsure where the market is going to take us , thus I brought at a very high price , unfortunately the price came down as quickly as it climbed up.
The reason I believe I haven't lost even a single penny is because I believe you cannot loose when you don't encash.
Therefore I still believe holding for the long term can actually help you .
This has been my personal experience and i have lost a lot. It may still be true that you wont lose a single penny if you dont cash out the money you own as an digital asset BUT HODLing too much might have a bad effect. The prices may change drastically and the value you are keeping might fall to nothing. HODLing might still be useful but you need a lot of patience and keep supporting the Cryptocurrency that you are rooting for.
Personally, I'm struggling with that myself and I try to be consistent and not be emotional with my trading.
We can't avoid that, though we learn already from our previous mistakes but when difficult time comes we do struggle because we are just humans.
It is just important that every time we commit mistakes, we should try correct by not doing it again, try to be consistent controlling your emotion as no good strategy would work if you are not in charge with your emotion.
Personally, I'm struggling with that myself and I try to be consistent and not be emotional with my trading.
We can't avoid that, though we learn already from our previous mistakes but when difficult time comes we do struggle because we are just humans.
It is just important that every time we commit mistakes, we should try correct by not doing it again, try to be consistent controlling your emotion as no good strategy would work if you are not in charge with your emotion.
This only happens when you are hodling an alts/coin that is very active in project development but in the case where you are hodling a shit coin and there is an opportunity to sell and regain part or all of your investment, better do so otherwise you ended up hodling bags of worthless shit coins.
This is reality, you have to be specific with alts that you are currently holding, it's not a good idea holding a shitcoin where only downfall always took place, before doing this investment you need to have proper research and make sure that good assumptions and a big trust to certain project has been established, from that point of views you'll be able to confidently hold and wait for the coin to growth.
I think the best way to do it is to be consistent with your trading and your principles should be rock solid with what could happen. Like if you ever reach the negative 2% with your entry, you would go and just cut losses, no emotional attachments towards it. It's just going to be like that most of the time, it's not a flaw with humans, but it could be a barrier towards your achievements with you. Something like that could hinder your growth and it's up to you if you decide to be helpful or not.
Personally, I'm struggling with that myself and I try to be consistent and not be emotional with my trading.
Personally, I'm struggling with that myself and I try to be consistent and not be emotional with my trading.
In some cases short term is more reasonable. But it makes sense. The major part of my investment is long term and I believe I won't lose.
Long term is not preferred in the case of smaller altcoins. 3-4 years back, I had invested heavily in altcoins. I had a large number of different coins, including Bitsend, Byteball, Litecoin, Denarius and Namecoin. Apart from a few such as Litecoin and Ethereum, most of them have lost at least 95% of their value during the last 1.5 years. Some have lost 99% of the value and are no longer traded in the exchanges. The trick is to convert them to more stable assets (such as fiat cash and Bitcoin), when you are having a chance. Once the prices crash and the coin is no longer actively traded, you may not be able to encash them. Another thing that can be planned is partial profit booking at fixed intervals.
This only happens when you are hodling an alts/coin that is very active in project development but in the case where you are hodling a shit coin and there is an opportunity to sell and regain part or all of your investment, better do so otherwise you ended up hodling bags of worthless shit coins.
Hey
I once came across a time when I was unsure where the market is going to take us , thus I brought at a very high price , unfortunately the price came down as quickly as it climbed up.
The reason I believe I haven't lost even a single penny is because I believe you cannot loose when you don't encash.
Therefore I still believe holding for the long term can actually help you .
I once came across a time when I was unsure where the market is going to take us , thus I brought at a very high price , unfortunately the price came down as quickly as it climbed up.
The reason I believe I haven't lost even a single penny is because I believe you cannot loose when you don't encash.
Therefore I still believe holding for the long term can actually help you .
True, you haven't lost anything, except the decline in the value of your assets, when you still hold it tight. But, most people who experience a decline in the value of their investment, usually will panic and tend not to think about the possibilities that can still occur later on. In a panic, people usually think shorter because they are afraid of losing everything.
That's probably the first thing that a person would think. Most of us doesn't know how to read the movement of the chart which will result into panic once an asset starts to decline slowly. I think a deemed lost is still a loss in profit especially in the altcoin market where most project tend to die quickly without being able to recover. There's a high possibility that you would loss the value of your asset.
I'd like to tell you that this is my mentality, at least I'm convincing myself that I will not loss money if I will not encase and even if my total portfolio now is only worth 10% of its original value, but I'm still optimistic the market will recover, especially the altcoins market.
There's the strongest hand. But I am personally taking this as a very risky strategy. In fact, a lot riskier if you take into consideration the altcoins market. Many of them are severely affected by the bear market so much so that they seem not have moved on a bit in their development. Volumes have turned into zero.
My decision regarding this will always be on a case-to-case basis. I will never sell a portion and encash my Bitcoin at a loss. But as to some shitcoins I am holding, I am very willing to let go of them even with a loss.
I'd like to tell you that this is my mentality, at least I'm convincing myself that I will not loss money if I will not encase and even if my total portfolio now is only worth 10% of its original value, but I'm still optimistic the market will recover, especially the altcoins market.
One seller in the market. And the other buyer is like this. The market is right. Right now ! The price has gone up. There is nothing to lose in the Bitcoin market. One time the price will go up.
You are only partially right. If you're referring to Bitcoin for instance, yes, with patience you might see the price reaching new ATH and it doesn't worth to sell in loss.
But if you hold some sh*t coins sometimes is better to accept the loss and to sell before the price goes to near zero.
But if you hold some sh*t coins sometimes is better to accept the loss and to sell before the price goes to near zero.
Actually I don't recommend holding for a long time since there's a lot of missed opportunity happened just like you missed the swing trades and day trades but if you're looking for a big profit and a sure profit you should do the holding but there's no assurance when will that happened (the big profit)
Hey
I once came across a time when I was unsure where the market is going to take us , thus I brought at a very high price , unfortunately the price came down as quickly as it climbed up.
The reason I believe I haven't lost even a single penny is because I believe you cannot loose when you don't encash.
Therefore I still believe holding for the long term can actually help you .
That's the big joke on wallstreetbets, you can't lose if you don't sell, but obviously that isn't true, if you're holding a shitcoin like bitconnect and it goes to zero you have lost, regardless of selling or not.I once came across a time when I was unsure where the market is going to take us , thus I brought at a very high price , unfortunately the price came down as quickly as it climbed up.
The reason I believe I haven't lost even a single penny is because I believe you cannot loose when you don't encash.
Therefore I still believe holding for the long term can actually help you .
If you are holding a shitcoin, you better forget about this mantra. This is not absolute, after all. If you are holding Bitcoin, this applies. I am also with the preference to hold my BTC if it falls lower than the price I bought it, unless there is a pressing need to sell at a loss. I guess the OP refers to BTC since this thread is on this section.
The problem with this notion is that you can't really predict the future, you might be all hopeful that after the many rain will come shine but it may not be so. Why you're hodling on to that coin and it's falling, truth is that it may never reach its ath in its lifetime again.
It is only applicable to stocks and investments that have fundamental values like gold or bitcoin otherwise it is a risky move. You can suddenly find yourself being a bag holder. It is also not applicable to traders because you need to set a stop loss in order to minimize losses. Only investors benefits to this move.
So how do you calculate and enjoy your profits if you dont encash and enjoy your profits? Sure it looks good in your spreadsheets that you gained this much profits but thosr are just numbers because that investment of yours can loose its value overnight, so for me, try to ecash a portion of it and enjoy the fruits of your labor.
Because all those gains and losses that you incurred are unrealized gains and unrealized loss. It means that once you sell your Bitcoin, that is the time it will realize gains or loss. So you are right, it is not gain or loss when you see the value goes up and down unless you sold it. So it is advisable to invest and hold to those coins that we believe will going to be in the market in the long run, like Bitcoin so we won't bother if we hold it for a long period of time.
Jump to: