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Title: Mitigating Risk, the One Thing You Need to Know! Post by: alpha492 on January 17, 2014, 04:22:16 PM I cringe every time a new trader asks me in our live Q&A channel whether or not that should exit some horrible position at ~10%, ~15%, or even ~20% losses. Stop-loss is everything for a trader and if you don't have some grasp on how to mitigate risk your just gambling.
The moment you can mitigate risk effectively is the moment you become a consistently profitable trader! http://www.wallstreetcrypto.net/2014/01/mitigating-risk-only-thing-you-need-to.html Title: Re: Mitigating Risk, the One Thing You Need to Know! Post by: empoweoqwj on January 18, 2014, 10:35:55 AM I cringe every time a new trader asks me in our live Q&A channel whether or not that should exit some horrible position at ~10%, ~15%, or even ~20% losses. Stop-loss is everything for a trader and if you don't have some grasp on how to mitigate risk your just gambling. The moment you can mitigate risk effectively is the moment you become a consistently profitable trader! http://www.wallstreetcrypto.com/2014/01/mitigating-risk-one-thing-you-need-to.html If you don't know about stop losses, you shouldn't be trading, period. Doesn't guarantee a profit though! Title: Re: Mitigating Risk, the One Thing You Need to Know! Post by: kelsey on January 18, 2014, 11:27:07 AM I cringe every time a new trader asks me in our live Q&A channel whether or not that should exit some horrible position at ~10%, ~15%, or even ~20% losses. Stop-loss is everything for a trader and if you don't have some grasp on how to mitigate risk your just gambling. The moment you can mitigate risk effectively is the moment you become a consistently profitable trader! http://www.wallstreetcrypto.com/2014/01/mitigating-risk-one-thing-you-need-to.html Read that link and rather interesting. I cringe everytime I hear a newbie/or try-hard expert trader using stoploss' (or charts for that matter). The moment you use charts as your primary entry/exit points tis the moment you are just gambling and will never be a longterm profitable trader. Been in the trading game awhile, yet to meet a wealthy chartist, and yet myself to use a % stop loss strategy. Title: Re: Mitigating Risk, the One Thing You Need to Know! Post by: sofuca on January 18, 2014, 11:56:50 AM how can this be automated? say with bitstamp?
I'd throw a lot more money into bitcoin if I could be rest assured I could go to bed and not wake up in the morning having lost all my money because China has caused a massive crash.... Title: Re: Mitigating Risk, the One Thing You Need to Know! Post by: empoweoqwj on January 18, 2014, 12:13:51 PM how can this be automated? say with bitstamp? I'd throw a lot more money into bitcoin if I could be rest assured I could go to bed and not wake up in the morning having lost all my money because China has caused a massive crash.... Bitstamp does not provide stoplosses. Its amateur in that respect. You need to look at something like coinsetters Title: Re: Mitigating Risk, the One Thing You Need to Know! Post by: sofuca on January 18, 2014, 12:19:57 PM I just found this, http://www.wallstreetcrypto.com/2013/12/how-to-short-btc-or-ltc.html
Time for some studying! Title: Re: Mitigating Risk, the One Thing You Need to Know! Post by: empoweoqwj on January 18, 2014, 12:21:35 PM I just found this, http://www.wallstreetcrypto.com/2013/12/how-to-short-btc-or-ltc.html Time for some studying! bitfinex is awful is many respects. Tread carefully! Title: Re: Mitigating Risk, the One Thing You Need to Know! Post by: alpha492 on January 18, 2014, 02:17:36 PM I just found this, http://www.wallstreetcrypto.com/2013/12/how-to-short-btc-or-ltc.html Time for some studying! bitfinex is awful is many respects. Tread carefully! They have upsides and downsides, leverage is nice but low volume allows for very strange market behavior. Title: Re: Mitigating Risk, the One Thing You Need to Know! Post by: danyy on January 18, 2014, 06:43:28 PM Always put a stop loss sonner than the take profit action.
Title: Re: Mitigating Risk, the One Thing You Need to Know! Post by: odolvlobo on January 18, 2014, 08:06:02 PM I cringe every time a new trader asks me in our live Q&A channel whether or not that should exit some horrible position at ~10%, ~15%, or even ~20% losses. Stop-loss is everything for a trader and if you don't have some grasp on how to mitigate risk your just gambling. The moment you can mitigate risk effectively is the moment you become a consistently profitable trader! http://www.wallstreetcrypto.com/2014/01/mitigating-risk-one-thing-you-need-to.html Read that link and rather interesting. I cringe everytime I hear a newbie/or try-hard expert trader using stoploss' (or charts for that matter). The moment you use charts as your primary entry/exit points tis the moment you are just gambling and will never be a longterm profitable trader. Been in the trading game awhile, yet to meet a wealthy chartist, and yet myself to use a % stop loss strategy. +1 Traders typically use stop loss to lock in losses, automatically. Think about it. Title: Re: Mitigating Risk, the One Thing You Need to Know! Post by: alpha492 on January 18, 2014, 08:14:13 PM I cringe every time a new trader asks me in our live Q&A channel whether or not that should exit some horrible position at ~10%, ~15%, or even ~20% losses. Stop-loss is everything for a trader and if you don't have some grasp on how to mitigate risk your just gambling. The moment you can mitigate risk effectively is the moment you become a consistently profitable trader! http://www.wallstreetcrypto.com/2014/01/mitigating-risk-one-thing-you-need-to.html Read that link and rather interesting. I cringe everytime I hear a newbie/or try-hard expert trader using stoploss' (or charts for that matter). The moment you use charts as your primary entry/exit points tis the moment you are just gambling and will never be a longterm profitable trader. Been in the trading game awhile, yet to meet a wealthy chartist, and yet myself to use a % stop loss strategy. The % stop-loss example was used here in order to cater to a more general audience, more advanced stop-loss techniques will be coming to the site soon. But I was afraid mentioning more advanced stop-loss techniques may convolute the point of the article which is that stop-loss is the one and only means to becoming a profitable trader. As mentioned in the article, even the most primitive stop-loss techniques can be used very successfully. Unfortunately, as mentioned in previous comments many exchanges in the 'crypto-biz' don't offer a platform that allows for reasonably seamless management of more advanced stop-loss techniques. So if you have found a way to execute something in an effective way more power to you, but for your average reader, % stop-loss is still effective. Title: Re: Mitigating Risk, the One Thing You Need to Know! Post by: empoweoqwj on January 19, 2014, 03:30:43 AM I cringe every time a new trader asks me in our live Q&A channel whether or not that should exit some horrible position at ~10%, ~15%, or even ~20% losses. Stop-loss is everything for a trader and if you don't have some grasp on how to mitigate risk your just gambling. The moment you can mitigate risk effectively is the moment you become a consistently profitable trader! http://www.wallstreetcrypto.com/2014/01/mitigating-risk-one-thing-you-need-to.html Read that link and rather interesting. I cringe everytime I hear a newbie/or try-hard expert trader using stoploss' (or charts for that matter). The moment you use charts as your primary entry/exit points tis the moment you are just gambling and will never be a longterm profitable trader. Been in the trading game awhile, yet to meet a wealthy chartist, and yet myself to use a % stop loss strategy. The % stop-loss example was used here in order to cater to a more general audience, more advanced stop-loss techniques will be coming to the site soon. But I was afraid mentioning more advanced stop-loss techniques may convolute the point of the article which is that stop-loss is the one and only means to becoming a profitable trader. As mentioned in the article, even the most primitive stop-loss techniques can be used very successfully. Unfortunately, as mentioned in previous comments many exchanges in the 'crypto-biz' don't offer a platform that allows for reasonably seamless management of more advanced stop-loss techniques. So if you have found a way to execute something in an effective way more power to you, but for your average reader, % stop-loss is still effective. There are many varieties of stop-loss. A % stop-loss is the most basic, but better than nothing. The hard part most people find with stop losses is actually sticking to them - they instead often cancel the stop-loss and turn to "hope" that the trade will turn round into a winner ;) |