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Lesson 5: Stop-Loss Strategy | A must needed for tradersHello Traders, I am back with yet another helpful lesson for y'all. This one is a must needed for any trader, and it is extremely important to get this right. A lot of people face a situation when they buy a coin at a higher price, and it just starts going down, and you just hold it in the hopes that it will go up soon. But instead, it just keeps going down more and more. Believe it or not there are many people out there who are still holding that coin because of just one mistake. They did not had a stop-loss order opened after they bought a coin. If they had a stop-loss order opened up, they would have been out at a minimal loss rather than waiting few months for the coin to come back up. If they had set up a stop-loss order, they could've bought the coin at its lowest, and then earned all those profits in lesser time. Don't you worry. I will go over this in a simple way so you can understand this topic really well. Keep in mind this is extremely important to cut your losses especially when we are not sure about the direction that BTC is heading in. Below are the topics we will go over today: What is a Stop-Loss Order? Strategize your Stop-Loss order price Advantages of Stop-Loss Disadvantages of Stop-Loss Note: For the above topic, please refer to the BTC chart above. Lets go over the topics now. What is a Stop-Loss order? A Stop-Loss order is an order set by a trader which will sell the coin if its price reaches below a set price (Stop Price) in this case. Basically if we buy a coin at $10, and you set a stop price at $8. Now, if the coin goes below $8, and if you have a Stop-Loss order up, it will open a Limit Order at the limit price you gave once the price reaches below your set Stop-Loss price. In simple terms, lets look at an example below: i0.wp.com Coin Buy price: 23000 Coin Stop: 20000 Coin Limit: 19000 Refer to the link above to see a image of how stop-loss looks like on Binance. Now lets say you buy a coin at 23000, and after you buy it, you set a stop-limit sell order with a Stop price of 20000, and sell (limit) price of 19000. So now once your coin goes below 20000, the system will automatically open a sell order at your set limit price which in this case is 19000. The benefit of this is that it cuts your losses if the coin keeps going down from that level. I know what you might be thinking right now. What if the coin doesn't keep going down from that level. This would go against you then. You are correct, but it is extremely important at what price you set your stop loss order at. We will discuss that strategy in the next topic below. I hope it is clear to you so far. That was just the intro on what Stop-Loss actually is. Now we can look at what sort of strategy we can use around it. Continue reading below....
COINBASE:BTCUSDEducation
by MoneyChartz
3
GDOW: Global Dow Limit Down all over the WorldGlobal Dow: GDOW Limit Down Across the World The pattern here is similar to GOOG (without the double tops) and shows how all major market indices have fallen under the spell of the high-tech mantra. What's good for Google is good for the world, well, world markets anyway. Critical support for this index lies at 2967. The low so far is 2276 today. Come what may later today, this index has to hold closing values at 2967. It's probing the lower parallel and whilst it holds up the Global Dow (and therefore all major markets too) has a good chance of rallying from here, the perfect spot. But the 2967 level is effectively limit down for the Global Dow. A close below here will tip this index back into bear territory again, forcing back down to 2920 to begin with and then after a small counter-rally back down to 2887 at least and then most likely back to 2802.
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by sumastardon
My Limit buy triggered right before the recent upswing.Was able to ride the upward bounce off of the fib after it wicked below jsut enough to trigger my limit buy...I don't anticipate the bears are done yet though...especially since the upcoming 1day chart death cross is still seeming like an inevitability in the coming days. Now that I ahd a successful limit buy triggered I qwill likely put another top loss a few pips below where I originally limit bought back in ensuring that I only sshort again if it goes noticeably and reasonably lower than where wI just bought back in but not too much lower just enough to where a long wick wont cause me to miss the trend reversal. You all do as you see fit as this is not financial advice but as you can see on my chart my limit buy triggered precisely...however this bounce needs a ton of bull momentum to see any real sustainability. If not, and the death cross on the 1 day occurs we could plummet all the way as far down as the ascending grey trendline which I still am confident would provide serious support...however for now I think the biggest downside could be the grey trendline most likely somewhere around the $7200 region my new stop loss will probably be triggered $153 under where I triggered my limit buy. Do as you choose as this is not financial advice! Thanks for reading.
BITFINEX:BTCUSDShort
by DrDovetail
The Trend: EP7 -- Stop-Limit saves ThousandsHowdy Yall! I know its been several days! I finally was able (with some help) to get back onto the recording video train. There for awhile The Trend was shut down because I couldn't get videos to load. Once I had shot them, clicking on the publish bar would make them disappear into the great beyond. We're over that now, and we're back to work! Today we have to throw out some bad analysis and take a look at the new stuff, and open our minds a bit. The most important thing we cover is protecting ourselves from bad ideas! Use your stop-limits, and if you're privy to it, use stop-buy's as well! Until Next time! Nuke
COINBASE:BTCUSD
by blessmywork
3
The Trend: EP2 -- Managing OurselvesWelcome back yall! Today on The Trend we talk about the unknown direction of BTC. It's a challenge to call a move upward, or downward with long term trends crashing one another. What usually gives it away? VOLUME . There is no volume in sight. We have to wait untill we see some volume to have conviction in the next move. Later today - or possibly tomorrow we're going to create one of the most important pivots we've had since the 15-17k retests. These are the times we have to manage ourselves. These are the times we have to have the discipline to set stop-limit's and protect ourselves from price-action that could empty our wallets. This is not the time to get hopped up on a new indicator, and think we know whats going to happen in a market which is running so cold, for so long, with little volume. Lets take some solace in what we DO know : There is a giant sum of money on the sideline There is a ton of capital in Alts which left BTC earlier this month - ripe to come back The mining difficulty has not gone down, indicating sentiment that BTC is not dying Talk, chatter, and new analysts are picking up BTC daily! This is not a market losing favor! Now some last minute things. Last night I had a moderator who was nice enough to point out that I don't need to create a second idea for you to "Make it mine" on my chart! Apparently that works on the video too! So if you want to steal the chart from this video and muck it up yourself, simply click the "share" button on the bottom right of the video, and choose "Make it Mine" on the window which pulls up afterwards. If you have questions, challenges, or ideas you want to show off relating to this episode of The Trend I would like to encourage you use that feature. I appreciate everyones support, and thank you for all the kind reviews so far!
COINBASE:BTCUSD
by blessmywork
15