Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency Trading => Topic started by: Manna on August 16, 2024, 11:49:33 AM
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Loss control strategies for cryptocurrency investing may be slightly different than for other investments. Here are some common techniques:
Mentioned below are its important steps
1. **Diversification:**Dividing your investment between multiple cryptocurrencies, so that losses in one currency are balanced by gains in others.
2. **Stop-Loss Orders:** Setting orders that will be automatically sold when the currency reaches below a certain price. This helps limit the amount of damage.
3. **Position Sizing:** Investing in small amounts without putting too much money in a single investment so that a loss on a single investment does not have a big impact on the overall portfolio.
4. **Regular Monitoring:** Regular monitoring of market movements and making necessary changes.
5. **Risk Assessment:** Evaluating the risks and possibilities of investment and making investment decisions based on that.
6. **Avoiding Emotional Decisions:** Refraining from taking emotional decisions quickly due to market fluctuations.
These strategies can help protect your investment, but keep in mind that all investments have risks and cannot be completely avoided.
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6. **Avoiding Emotional Decisions:
One of the most important thing that you should consider is in regarding into this. You should really know on how to control your emotions
because this would really be that primarily makes you that impulsive on which it would really be that resulting into those desperate recovery
measures on which it could cause even more loses. This is why you should really be that mindful in regarding into this one.
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6. **Avoiding Emotional Decisions:
One of the most important thing that you should consider is in regarding into this. You should really know on how to control your emotions
because this would really be that primarily makes you that impulsive on which it would really be that resulting into those desperate recovery
measures on which it could cause even more loses. This is why you should really be that mindful in regarding into this one.
Emotions are one of the things that can make us in a messy situation. Because when we are controlled by emotions we cannot think clearly, so this is indeed an important factor that must be considered.
Many people fail because of emotions, if we talk about this more broadly, then not only in trading this will be chaotic, but in everyday life it will also be chaotic if you cannot control your emotions.
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1. **Diversification:**Dividing your investment between multiple cryptocurrencies, so that losses in one currency are balanced by gains in others.
by dividing our capital into two cryptocurrencies, when one of our coins experiences a loss, the other coin can cover the loss. so that we do not experience a very large loss, if we do not divide into two, we are afraid that the currency you save will be at a loss, making you bankrupt and at that time you will not be able to turn your money around anymore.
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1. **Diversification:**Dividing your investment between multiple cryptocurrencies, so that losses in one currency are balanced by gains in others.
by dividing our capital into two cryptocurrencies, when one of our coins experiences a loss, the other coin can cover the loss. so that we do not experience a very large loss, if we do not divide into two, we are afraid that the currency you save will be at a loss, making you bankrupt and at that time you will not be able to turn your money around anymore.
diversification in investing is a way to increase opportunities and reduce the risk of loss. We can also do this in short and medium term investments, because for the long term I choose bitcoin so I think the risk is very small. The biggest risk is trading, my advice is not to use one coin because it is very risky if we predict wrongly.
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I do not like to diversify in trading but I can diversify if it is holding but on good coins and not shit coins. If it is trading, I noticed recently that you can not concentrate on all your multiple positions that is opened, but there can be a better concentration on a single position. I made a mistake recently which makes me to forget th leverage that I used on a pair on my multiple positions and I lost. The loss would not have happened if I opened just one position.
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1. **Diversification:**Dividing your investment between multiple cryptocurrencies, so that losses in one currency are balanced by gains in others.
Yes, if you invest in multiple coins instead of investing in just one coin, the risk of loss is much reduced because even if you lose in one coin, the other one will recover it.
2. **Stop-Loss Orders:** Setting orders that will be automatically sold when the currency reaches below a certain price. This helps limit the amount of damage.
The stop-loss strategy often leads us to losses because in some cases the price starts to pump again after the stop loss price is exceeded. So stop-loss should not be used if you are not sure
3. **Position Sizing:** Investing in small amounts without putting too much money in a single investment so that a loss on a single investment does not have a big impact on the overall portfolio.
True +1
4. **Regular Monitoring:** Regular monitoring of market movements and making necessary changes.
it is better strategy for trading but bad strategy for holding
6. **Avoiding Emotional Decisions:** Refraining from taking emotional decisions quickly due to market fluctuations.
True, Our emotions are our worst enemy. Emotions cause us to panic and make mistakes in various places
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I do not like to diversify in trading but I can diversify if it is holding but on good coins and not shit coins. If it is trading, I noticed recently that you can not concentrate on all your multiple positions that is opened, but there can be a better concentration on a single position. I made a mistake recently which makes me to forget th leverage that I used on a pair on my multiple positions and I lost. The loss would not have happened if I opened just one position.
trading is safer in my opinion buying coins listed from 1-100 coinmarket and we just have to choose which coins are suitable to invest in the current conditions, if we have a large enough capital I suggest buying the top coins and if you have limited capital buy coins that you think fit your capital. that way we just have to make a strategy for the future, whether we invest long term or short term.
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Thank you very much to create this useful topic. Because you also make awareness from loss in cryptocurrency market. I think loss control strategy is one of the best valuable matter for us. If we were hold ia different coin, i think if one coin is lost, than other coin will be profitable. So that we don’t face the problem. We can invest in a little money, so that if we invest a little money to protect for loss control. If we regular monitoring in our market we can avoid this problem. At last if we taken step for controlling our loss, i believe that we will be success.
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it is better strategy for trading but bad strategy for holding
If you are holding altcoins that are very volatile, it is not a bad strategy. I remember when I hold some coins from last year to the beginning of this year, I check their price daily and the amount of unrealized money that I have made. I sold at profit but the coins went higher but fall back no long and start to decrease more till now.
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it is better strategy for trading but bad strategy for holding
If you are holding altcoins that are very volatile, it is not a bad strategy. I remember when I hold some coins from last year to the beginning of this year, I check their price daily and the amount of unrealized money that I have made. I sold at profit but the coins went higher but fall back no long and start to decrease more till now.
Highly volatile coins are great for trading or medium term holding. Where we can hold it and sell when the price is high, then buy it again when the price hits the bottom. Because it can be predicted that the price will go up again and we can make a profit again. That's why we have to do research and study the character of the coins.
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1. **Diversification:**Dividing your investment between multiple cryptocurrencies, so that losses in one currency are balanced by gains in others.
What loss-covering strategy will you suggest to people who don't do diversification and prefer to trade in only a single pair? There is a topic created by a member here who is interested to know how a person should manage their trades in a single pair, like by opening multiple trades in the same pair. (source (https://www.altcoinstalks.com/index.php?topic=323796.0)) 4. **Regular Monitoring:** Regular monitoring of market movements and making necessary changes.
I really want to regularly monitor the market,, but I don't know which news to sell and which news to buy. What should I do in such a situation?
These strategies can help protect your investment, but keep in mind that all investments have risks and cannot be completely avoided.
I agree with you, strategies are not meant to save you all of your funds, but they minimize the risk and loss to some extent.
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Highly volatile coins are great for trading or medium term holding. Where we can hold it and sell when the price is high, then buy it again when the price hits the bottom. Because it can be predicted that the price will go up again and we can make a profit again. That's why we have to do research and study the character of the coins.
With the note that the coin also has a large volume so it will be easier to scalp or if in the medium term is swing trading, start buying below and then wait when the price reaches the top resistance or can even reach the ATH.
Coins like these are usually hyped coins or new coins that have just been listed on Tier 1 exchanges.
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Not that I do care about this, because I think it will not be a big deal, because I hold it long term and even if it goes down, I just DCA nad that is the best prevention that I have, and usually does very well. But if I have to talk about just selling part, then I do trailing stop loss, that way I get to keep it going as high as possible, and only sell when it starts to fall, but I don't do it under what I bought because that is not the thing I am looking for. I think its clear that we are going to see this changing a lot ,and I think it will definitely be something that crazy, its going to be easy decision for me each time.
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6. **Avoiding Emotional Decisions:
One of the most important thing that you should consider is in regarding into this. You should really know on how to control your emotions
because this would really be that primarily makes you that impulsive on which it would really be that resulting into those desperate recovery
measures on which it could cause even more loses. This is why you should really be that mindful in regarding into this one.
Emotions are one of the things that can make us in a messy situation. Because when we are controlled by emotions we cannot think clearly, so this is indeed an important factor that must be considered.
Many people fail because of emotions, if we talk about this more broadly, then not only in trading this will be chaotic, but in everyday life it will also be chaotic if you cannot control your emotions.
Everything that you have planned up earlier you would really be that become a total mess and this is something that you should really be needing to look upon when it comes to emotion handling.
Each one of us would really be having that kind of tendency or chances that you might be able to experience it out and if you are someone who cant be able to control out such emotion
then just like been said that you would really be that messing up yourself on whatever the things you've been dealing specially you are involved with trading.
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Yes, that's right. You should always remember that all investments involve risks and cannot be completely avoided. No matter how experienced an investor or trader is in the field, he can be exposed to a loss as a result of a mistake, whether it is a mistake resulting from analysis, emotions, or sudden market fluctuations.
There are many good tips to avoid losses, but I specifically mention diversifying the investment portfolio, as it is better to divide the capital to buy several coins, not one, and it is also better to divide the capital into several portfolios or exchanges.
The last tip is also important, which is to avoid emotional decisions because emotions often cause large losses as a result of rushing to make wrong decisions.
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Since trading is a very risky activity, there will be a possibility of loss but we have to take care that it is less. There should not be too much leverage in trading. Greed should be restrained. Emotions should be controlled in trading. Repeatedly. You should refrain from trading. You should trade by understanding the market situation. You have to make yourself a good market analyst to understand the market situation. You have to do regular monitoring. No decision can be taken on impulse. If you keep the order setting, the amount of loss will be reduced a lot. If you want to do trading, you must have adequate understanding about it and then do it.
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I do believe that if you could do trailing stop loss like I mention, then you are going to be making a good chunk of money for a long time. Trailing stop loss once again is just waiting for it to go up, and then the more it goes up the more you do not touch it, just keep staying away from it and just keep ignoring it all together, and eventually you will end up with something much better. Then, if it starts to go down, you sell only in that situation, not towards what you bought, but before, that way you get out in profit thanks to this. This is why the best method for traders is to do TSL, if you do that, you will be fine.
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I think the stop-loss strategy is one of the good things that all traders in the crypto space should not forget. Because it will greatly help us to limit or control correctly the fund we have in an exchange.
and in this way we can train ourselves not to be greedy when trading here. because a lot of people lose in trading when they don't use the right SL, in my opinion.
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I think the stop-loss strategy is one of the good things that all traders in the crypto space should not forget. Because it will greatly help us to limit or control correctly the fund we have in an exchange.
and in this way we can train ourselves not to be greedy when trading here. because a lot of people lose in trading when they don't use the right SL, in my opinion.
Yes, that’s right. Stop loss strategy is one of the most important tools that a trader should use in trading and most of the time traders should not forget about this strategy. It also helps the trader control our funds more effectively, which is essential when it comes to risk management because by placing stop loss; the trader can be sure we will not lose more than the desired amount. Secondly, stop loss also assists an individuals to practice patience and dismiss any thinks and actions influenced by greed. In fact, many traders end upargc giving huge losses due to improper use of this strategy; hence, it is also among the major factors that determine success in trading.
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I think the stop-loss strategy is one of the good things that all traders in the crypto space should not forget. Because it will greatly help us to limit or control correctly the fund we have in an exchange.
and in this way we can train ourselves not to be greedy when trading here. because a lot of people lose in trading when they don't use the right SL, in my opinion.
Yes, that’s right. Stop loss strategy is one of the most important tools that a trader should use in trading and most of the time traders should not forget about this strategy. It also helps the trader control our funds more effectively, which is essential when it comes to risk management because by placing stop loss; the trader can be sure we will not lose more than the desired amount. Secondly, stop loss also assists an individuals to practice patience and dismiss any thinks and actions influenced by greed. In fact, many traders end upargc giving huge losses due to improper use of this strategy; hence, it is also among the major factors that determine success in trading.
I don't have a good experience in using stop loss features, so I choose to do it manually and always monitor market movements and always look at the chart. This seems busy, but I am comfortable with this condition.
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I think the stop-loss strategy is one of the good things that all traders in the crypto space should not forget. Because it will greatly help us to limit or control correctly the fund we have in an exchange.
and in this way we can train ourselves not to be greedy when trading here. because a lot of people lose in trading when they don't use the right SL, in my opinion.
Yes, that’s right. Stop loss strategy is one of the most important tools that a trader should use in trading and most of the time traders should not forget about this strategy. It also helps the trader control our funds more effectively, which is essential when it comes to risk management because by placing stop loss; the trader can be sure we will not lose more than the desired amount. Secondly, stop loss also assists an individuals to practice patience and dismiss any thinks and actions influenced by greed. In fact, many traders end upargc giving huge losses due to improper use of this strategy; hence, it is also among the major factors that determine success in trading.
I don't have a good experience in using stop loss features, so I choose to do it manually and always monitor market movements and always look at the chart. This seems busy, but I am comfortable with this condition.
If you feel comfortable with the current conditions, you can still do it because in investing we have to do something that suits and is comfortable with us. I also sometimes use stop loss features when I see worrying market movements but if I am sure the market will start to rise and stabilize I also use manual methods like you.
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I think the stop-loss strategy is one of the good things that all traders in the crypto space should not forget. Because it will greatly help us to limit or control correctly the fund we have in an exchange.
and in this way we can train ourselves not to be greedy when trading here. because a lot of people lose in trading when they don't use the right SL, in my opinion.
Yes, that’s right. Stop loss strategy is one of the most important tools that a trader should use in trading and most of the time traders should not forget about this strategy. It also helps the trader control our funds more effectively, which is essential when it comes to risk management because by placing stop loss; the trader can be sure we will not lose more than the desired amount. Secondly, stop loss also assists an individuals to practice patience and dismiss any thinks and actions influenced by greed. In fact, many traders end upargc giving huge losses due to improper use of this strategy; hence, it is also among the major factors that determine success in trading.
I don't have a good experience in using stop loss features, so I choose to do it manually and always monitor market movements and always look at the chart. This seems busy, but I am comfortable with this condition.
If you feel comfortable with the current conditions, you can still do it because in investing we have to do something that suits and is comfortable with us. I also sometimes use stop loss features when I see worrying market movements but if I am sure the market will start to rise and stabilize I also use manual methods like you.
Risk management is enhanced if an approach appropriate for the conditions of the market and this individual’s comfort is used. There always comes a time that some strategies need to be changed as they do not meet market demands any longer; this is why market-strategy analysis is crucial in ensuring clients get the best services. Thus, it is possible to say that on the basis of the outcomes mentioned above we will be more prepared with regard to different options.
Of course, the chosen strategy can offer sufficient outcomes and it is appropriate to long-term investment plans. Indeed, there is need to make changes and keep on learning to do things right for success in investing.
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4. **Regular Monitoring:** Regular monitoring of market movements and making necessary changes.
4. **Regular Monitoring:**
Regular trading is very important for a successful Trader. Regular trading is the ability of simultaneously checking, analyzing or examining your trades and market condition to ensure that you are on the right way to meet your goals.
It is crucial for traders to monitor market movements and changes. This enables them to determine whether market fluctuations are positive or negative, allowing them to take necessary actions accordingly.
To succeed, traders must stay informed about market news and trends. They should also be able to manage and control risks, making informed decisions based on prevailing market conditions.
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the most common experienced by most traders is related to emotions... it is really the main gate for novice traders and filters out people with a brave mentality....
This emotion usually arises together with FOMO,... where when he sees the price of Bitcoin rise to $105k he immediately buys it without looking at some analysis data... and when the price of bitcoin drops to $95k he sells it because he is afraid it could fall even deeper... but it turns out that it was just a correction that made the asset bounce back higher.... usually traders with unstable emotions will be forced to take losses when the correction moment... and I have also experienced this
So maybe it can be said that this is quite normal for all new traders.
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I think the stop-loss strategy is one of the good things that all traders in the crypto space should not forget. Because it will greatly help us to limit or control correctly the fund we have in an exchange.
and in this way we can train ourselves not to be greedy when trading here. because a lot of people lose in trading when they don't use the right SL, in my opinion.
Yes, that’s right. Stop loss strategy is one of the most important tools that a trader should use in trading and most of the time traders should not forget about this strategy. It also helps the trader control our funds more effectively, which is essential when it comes to risk management because by placing stop loss; the trader can be sure we will not lose more than the desired amount. Secondly, stop loss also assists an individuals to practice patience and dismiss any thinks and actions influenced by greed. In fact, many traders end upargc giving huge losses due to improper use of this strategy; hence, it is also among the major factors that determine success in trading.
I don't have a good experience in using stop loss features, so I choose to do it manually and always monitor market movements and always look at the chart. This seems busy, but I am comfortable with this condition.
Stoplosses will really be that only relevant on the time or moment that you do make out some futures trading but on the moment that you are dealing up with spot then i dont see this relevance since you could really just that simply holding up your coins until the market will really be having its recovery. It will really be that depending on you about on how you would be setting out your limits because this is something that be depending into someones control and emotions on which we know that this is something that really needs up to consider.
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I don't trade random coins so I can say that whenever the price crash happens I just wait until it recovers which may happen sooner or take a while but technically we are not in loss until we sell those so I just cancel the trades and keep the funds to myself for future. Apart from that I guess stop loss and money management plays vital role which is not essentially a strategy but kind of basic tool.
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I don't trade random coins so I can say that whenever the price crash happens I just wait until it recovers which may happen sooner or take a while but technically we are not in loss until we sell those so I just cancel the trades and keep the funds to myself for future. Apart from that I guess stop loss and money management plays vital role which is not essentially a strategy but kind of basic tool.
dont this strategy apply more to longer term of investing? a lot of traders i see have a set price below their target price in which they can take out their money when the price hits that specific amount so that they can still get profit even if the market is crashing and they are quite in a tight spot especially for traders of altcoins where they do not know if the market will still recover so it is really very vital that they take profit as soon as they can
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I don't trade random coins so I can say that whenever the price crash happens I just wait until it recovers which may happen sooner or take a while but technically we are not in loss until we sell those so I just cancel the trades and keep the funds to myself for future. Apart from that I guess stop loss and money management plays vital role which is not essentially a strategy but kind of basic tool.
Holding back is the best way not to lose and it provides an opportunity for those who are stuck in high prices,
but of course rebuying slowly at the dip price will help to raise the buying average.
The strategy of waiting for the price to start to correct and arrive at the base price is the best strategy that can be applied, but you must also have a qualified analysis and strong psychology to manage money well so that you will not miss the opportunity to buy even cheaper.
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I don't trade random coins so I can say that whenever the price crash happens I just wait until it recovers which may happen sooner or take a while but technically we are not in loss until we sell those so I just cancel the trades and keep the funds to myself for future. Apart from that I guess stop loss and money management plays vital role which is not essentially a strategy but kind of basic tool.
dont this strategy apply more to longer term of investing? a lot of traders i see have a set price below their target price in which they can take out their money when the price hits that specific amount so that they can still get profit even if the market is crashing and they are quite in a tight spot especially for traders of altcoins where they do not know if the market will still recover so it is really very vital that they take profit as soon as they can
Traders are eventually a type of investors too, and there's nothing wrong with having flexibility when the market take unexpected turns so holding seems to the less chance of losing our capital instead of selling it 20 or 30% lower than we bought initially and this is the same mistake done by most newbies they entered the market at peak and suddenly there will be a drop they can't hold for various reasons eventually exit the market with loss.
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I think the stop-loss strategy is one of the good things that all traders in the crypto space should not forget. Because it will greatly help us to limit or control correctly the fund we have in an exchange.
and in this way we can train ourselves not to be greedy when trading here. because a lot of people lose in trading when they don't use the right SL, in my opinion.
Stop loss is important in trading but I have seen traders a that don’t like using stop loss in their trades because they want to maximize their win after been so sure that the market will go in the direction they predict even if it has to go against them for a while. Those that practice this well are those that have a lot of funding in their account and are ready to risk most of them, risks that they can bare to take using small leverages. Stop loss is important but I feel when you’re able to have more control over your emotions, you’ll be able to get more acquainted to winning than the losses you’ll incur in a trade.
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I think the stop-loss strategy is one of the good things that all traders in the crypto space should not forget. Because it will greatly help us to limit or control correctly the fund we have in an exchange.
and in this way we can train ourselves not to be greedy when trading here. because a lot of people lose in trading when they don't use the right SL, in my opinion.
Stop loss is important in trading but I have seen traders a that don’t like using stop loss in their trades because they want to maximize their win after been so sure that the market will go in the direction they predict even if it has to go against them for a while. Those that practice this well are those that have a lot of funding in their account and are ready to risk most of them, risks that they can bare to take using small leverages. Stop loss is important but I feel when you’re able to have more control over your emotions, you’ll be able to get more acquainted to winning than the losses you’ll incur in a trade.
I also sometimes use stop loss fearture when the market moves very volatile, and my time to monitor the market is not much because of my real world activities. This makes me have to use stop loss because I don't want to lose much in trading.
However, it all depends on each person's ability and emotional control is different.
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I also sometimes use stop loss fearture when the market moves very volatile, and my time to monitor the market is not much because of my real world activities. This makes me have to use stop loss because I don't want to lose much in trading.
However, it all depends on each person's ability and emotional control is different.
If you are a day trader or the short-term trader then I want to say that there is no other way to stay safe in short-term trading rather than using the stop loss features.
Even then I want to also suggest one thing that even then you are using the stop losses I will say that you have to also monitoring the crypto market or the chart regularly for knowing the market sentiment. Like it happened to me multiple time I have using the stop loss and after activated it market again goes up and up I stay with my few losses.
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Stop loss is important in trading but I have seen traders a that don’t like using stop loss in their trades because they want to maximize their win after been so sure that the market will go in the direction they predict even if it has to go against them for a while. Those that practice this well are those that have a lot of funding in their account and are ready to risk most of them, risks that they can bare to take using small leverages. Stop loss is important but I feel when you’re able to have more control over your emotions, you’ll be able to get more acquainted to winning than the losses you’ll incur in a trade.
Indeed, It all comes back to each strategy owned by traders. But, for those who are high risk takers, they sometimes do not set SL or CL. Or those who do trading that is not the future market, or only in the Spot market, they may also not set SL or CL to anticipate a market drop.
However, if they are active day traders, they usually use SL to manage their assets and anticipate further drops in their assets. Because their money must continue to circulate and cannot wait too long for the market to improve. But they sometimes prefer to use SL and jump to other coins to optimize chances for profits. Yes, again this is each tactic. and whatever suits each of them is what is used.
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I also sometimes use stop loss fearture when the market moves very volatile, and my time to monitor the market is not much because of my real world activities. This makes me have to use stop loss because I don't want to lose much in trading.
However, it all depends on each person's ability and emotional control is different.
If you are a day trader or the short-term trader then I want to say that there is no other way to stay safe in short-term trading rather than using the stop loss features.
Even then I want to also suggest one thing that even then you are using the stop losses I will say that you have to also monitoring the crypto market or the chart regularly for knowing the market sentiment. Like it happened to me multiple time I have using the stop loss and after activated it market again goes up and up I stay with my few losses.
You are right as a day trader must set a stop loss because of the volatile nature of the crypto market and as I said before sometimes I do not have time to monitor the market with the consideration that rather than us losing too much when the market drops sharply, the stop loss feature is very necessary.
Maybe for other day traders who can always monitor the market do not really need this, but I really need it.
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You are right as a day trader must set a stop loss because of the volatile nature of the crypto market and as I said before sometimes I do not have time to monitor the market with the consideration that rather than us losing too much when the market drops sharply, the stop loss feature is very necessary.
Maybe for other day traders who can always monitor the market do not really need this, but I really need it.
Using stop losses does offer some measure of protection but basing your trading decisions almost entirely on it will not be that effective if one does not understand price movements. In our capacity as day traders, the stop losses can be much more tactically managed, for instance by setting our new levels depending on new technical indicators of the market fluctuations. Secondly, making an effort to define a set of more rigid trading strategies such as setting the limits of profits and fixed percentage stop-losses will let us minimize our reliance on the particular instrument. If time to closely observe the market is a constraint we may probably the want to resort to informing through prices alerts and other semi-automated approaches. Thus if tools are integrated with right planning then it becomes easier to strike a balance between guarding capital from market exploitation and results in maximum capture from the market.
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You are right as a day trader must set a stop loss because of the volatile nature of the crypto market and as I said before sometimes I do not have time to monitor the market with the consideration that rather than us losing too much when the market drops sharply, the stop loss feature is very necessary.
Maybe for other day traders who can always monitor the market do not really need this, but I really need it.
Using stop losses does offer some measure of protection but basing your trading decisions almost entirely on it will not be that effective if one does not understand price movements. In our capacity as day traders, the stop losses can be much more tactically managed, for instance by setting our new levels depending on new technical indicators of the market fluctuations. Secondly, making an effort to define a set of more rigid trading strategies such as setting the limits of profits and fixed percentage stop-losses will let us minimize our reliance on the particular instrument. If time to closely observe the market is a constraint we may probably the want to resort to informing through prices alerts and other semi-automated approaches. Thus if tools are integrated with right planning then it becomes easier to strike a balance between guarding capital from market exploitation and results in maximum capture from the market.
Stop loss is a very effective strategy to protect large losses. But for that you must have proper knowledge of market analysis that if the price of a coin goes down, that coin will fall into the danger zone. If you don't know how to do such an analysis and mistakenly set a stop loss at a desired price, then the price of this coin will hit the stop loss and the price will rise again. This will cause you to panic and you may still make the wrong decision again. So you must learn trading well if you want to earn money through trading. I use stop loss all the time because it saves me from big losses at times
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I have taken a whole lot of risk, buying beyond what I feel bad whenever I loose it. Investing more than I earn. But I learnt in a hard way. I buy within my money power, what I won't feel bad whenever I loose it.
Well, for example, experience has taught you how things should be done. It's hard when you lose money, I don't doubt it, but since things are like that, it's a thousand times better to determine how much money we are willing to risk and lose before doing any operation Accordingly, that's what we risk and that's what we do. Why? To avoid losing money that isn't in our budget, that's what we should do. It's also very modest and a very intelligent strategy; it avoids all kinds of addiction.
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You are right as a day trader must set a stop loss because of the volatile nature of the crypto market and as I said before sometimes I do not have time to monitor the market with the consideration that rather than us losing too much when the market drops sharply, the stop loss feature is very necessary.
Maybe for other day traders who can always monitor the market do not really need this, but I really need it.
Yeap for the day trader it is a really good solution to handle up the losses in trading but who were not time to regular monitoring the market or who have others job so that sometime he forgot to checking monitoring for these this is also good strategy but it need even check and analysis to make profit from stop loss. Although it is stop loss features not he stop profit nor the increase profit it is for decreasing the loss amount.
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1. **Diversification:**Dividing your investment between multiple cryptocurrencies, so that losses in one currency are balanced by gains in others.
This is the key factor I don't miss in my crypto investment. I always tell people around me not to fail to diversify their investment in 70% Bitcoin and 30 altcoins. This way you can escape encountering crypto loses because you are not putting all eggs in one basket. If one or two coins fails, Bitcoin and some other potential coins you have in your portfolio can give back the profit returns
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There are other trading strategies that help traders besides the use of Stop-Loss on an exchanges, the following guidelines can be necessary to reduce or eliminate trading losses.
1.Risk management, this goes to help in huge ways especially those on the future/margin options. It is appropriate to trade with a low leverages.
2. Carrie out a good research about the coins/tokens to trade
3.Set effective goals.
4.Diversify investments, if the coins in your trading portfolio are facing low demands, there is need diversify on other coins
5.Always staying informed about market trends.
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*Avoiding Emotional Decisions:**
When im losing then this will really be that my primary concern on which dont let yourself that being that controlled by your emotions because at the time or moment that it will happen the you will be that potentially be having that verge on acquiring even more loses on which this is really a bad situation.
Take a control of your emotion and mindset, because on the time or moment that you do lose your cool then you will be that not be able to follow into your plans that you had set earlier. There are people who are that good on self control but there are ones who do really failed up miserably because of having no control.
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You are right as a day trader must set a stop loss because of the volatile nature of the crypto market and as I said before sometimes I do not have time to monitor the market with the consideration that rather than us losing too much when the market drops sharply, the stop loss feature is very necessary.
Maybe for other day traders who can always monitor the market do not really need this, but I really need it.
Most of he traders that do futures avoid stop loss because of the high volatility of crypto market. One minute the market is trading below $93k and the next day it's trading above $96k, such range are mostly liquidation hunting, if you use stop loss you will be liquidated and since the overall sentiment remain bullish, it will gives you hope.
As much as I like the things OP stated, think that doing fundamental analysis helps you achieve much more as pre before the things he mentioned on the list. The analysis helps to make good decisions in the things he mentioned.
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You are right as a day trader must set a stop loss because of the volatile nature of the crypto market and as I said before sometimes I do not have time to monitor the market with the consideration that rather than us losing too much when the market drops sharply, the stop loss feature is very necessary.
Maybe for other day traders who can always monitor the market do not really need this, but I really need it.
Most of he traders that do futures avoid stop loss because of the high volatility of crypto market. One minute the market is trading below $93k and the next day it's trading above $96k, such range are mostly liquidation hunting, if you use stop loss you will be liquidated and since the overall sentiment remain bullish, it will gives you hope.
As much as I like the things OP stated, think that doing fundamental analysis helps you achieve much more as pre before the things he mentioned on the list. The analysis helps to make good decisions in the things he mentioned.
I don't do futures trading because I don't have much experience there, I prefer spot trading. that's why I use stop loss because I think it's the safest.
The crypto market is very volatile, that's why I sometimes make mistakes in predicting and can't determine the right strategy.
We must learn fundamental analysis before we invest and trade, because this is very important because it is needed in making a strategy in trading.