Whatsup people, it’s ya boi Shill Nye. I’m out in NYC but I’m still cranking out mad content while I’m out here. Here’s an article about how I manage stop losses in crypto. Enjoy.
Day Trades
I don’t really day trade ever. I used to, but for the inexperienced it is a recipe for disaster. If you are day trading, I would imagine that stop losses play an important roll in saving money. Again, I don’t do it so I can’t speak about it.
Swing Trades (Weeks to Months)
Personally, I never use stop losses when I’m swing trading in a market like his. So many coins are VERY far away from their ATH and it makes no sense for me to use a stop loss. If you found a good entry, why give it up?
If you are swing trading in a market that is further along in its cycle, then yes it can be important to set stop losses. If you are unsure of your entry or you know it’s not the bet, it could help.
Personally, I find stop losses risky. A lot of whales could manipulate the price of the coin to a certain point where your stop loss gets triggered. This might happen while you are away or while sleep and the price could shoot up afterwards. I’ve seen it happen before.
Gems/Low Caps
I never use stop losses on low caps, partly because those exchanges don’t support them, but mostly because whales might cause a big dump (happens often) and you could get stopped out. Not much else to say about this one.
When In Profit
Sometimes I will set a stop loss on a coin I am already in major profit on.
For example, if ICX is up 80% and near the top of a candle, but it has the potential to go higher, I could use a stop loss 10% lower (at 70% profit) to secure profits, just in case it dips.
This is personally the only way I really use stop losses.
Finally,
I very rarely use stop losses when buying a coin because I am usually very confident in my entry before I buy a coin.
Sometimes I will use stop losses to secure profits if I am already up on a coin in case of a BitcoIn run or a dump. This is where I see them being useful.
“If you can’t handle a 10–20% loss, you don’t deserve a 200% gain.” — Unknown
Bio:
I’m ya boi, Shill Nye. I trade/investigate cryptocurrency full time. Follow me on Twitter.
Join my free Telegram group here: https://t.me/netflixandshillann
Subscribe to my YouTube here: https://www.youtube.com/channel/UCspcykxjIbHo0C9ZOCM9YnA
Watch my livestreams here: https://www.pscp.tv/cryptoshillnye/
Watch the Netflix and Shill Podcast I co-host here: https://www.youtube.com/channel/UCqgVDmWx5gHi7Cc273QMJuQ
Disclaimer:
I do not give financial advice. I am not a financial advisor. If you are looking for financial advice, then you should go to google and look for a financial advisor in your area. The shit I write is simply for entertainment purposes. You should never blindly trust anyone on the internet who tells you where or how to invest your money.
Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
https://www.coinmarkets.net/stories/38878/cryptocurrency-investments-managing-stop-losses/
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit