Bitcoin Forum

Trading is an art and those that mastered the art played better even when it's raining. Crypto trading is not different either, but when the market is down we tend to forget all the formula we know and quickly get absorbed into the situation, the same happens when the market is going up, we clap and forget to take actions and eventually see the opposite happening.

However, we can do better and survive even when the market is bad.

To take profits or cut out loses is very important strategy in crypto trading, and I will describe few ways you can achieve this without feeling the heat of the market.

Depending on your style of trading whether long term or short term but when situations present itself I would advice that you combine the two methods and get the best out of the market.

How to handle cutting out losses
Using Enigma (ENG) as a case study. At the time of writing this post, Enigma (ENG) is at 10600 sat on Bittrex and 10634 on Binance exchange, let's assume you have invested $1000 and bought it 3 days ago when it was at good buy around 12546 sat giving you a total coin of 1245 ENG. It has only went up only a few percent and its possible that you didn't sell before it reversed, as at now it has dropped 15.51% lower, but assuming you are close to your trade when it was dropping, you could place your stop loss at 5% below your buy order and cut out loss at around 11900 sat or abruptly sell out at 11400 sat when the EMA crossed the SMA curves and started with sharp move downward.

If you did any of these I described above, the next question is what should you do with the money you sold since you are still at loss if you just walk away like that. Then the best thing to do is to reinvest back into the same coin by taking a watch at the market and buying back at much lower position when the EMA curve crosses the SMA again, with this buying around 10600 sat or below can give you around 1340 ENG which is higher than 1245 ENG you initially had, and the good thing is you are still back in the market. You should be sure to sell when you are at profit around 10% upward is better than none since 100% is very hard to come by this days unless you want to wait a longer time which is why I said you should learn to combine short term and long term together for optimal profit.

Alternatively, you can have patience and wait for full recovery but whichever one it is, avoid selling your coin at the bottom or middle of red candle which is a possible place to even place a buy order. Always look at your indicators it can be helpful.

For Taking Profit when the market is up you can just determine how many percentage profit you want and set your sell order, still watch the market and assuming that first target is not realizable before downward move, you can sell at comfortable profit and buy again at lower position.

I hope this helps anyone because the market is really not very favorable as it used to be.

Please note it's better to wait for market full recovery than following this method unless you are willing to give it what it takes and most importantly do not use this method under pressure or with your emotions as it can be very destructive if it is not handled with care.

Happy trading guys ;D ;D

To be able to survive in the bear market, in my experience it can be seen that in order to successfully trade and reduce risk and loss, before any transaction you need to have a clear plan, You may find that bitcoin prices are constantly decreasing and this has made altcoin a very profound reduction. So let's just trade the bitcoin at this point.

I think it depends on the mentality and immediate needs of that particular investor. However, in my opinion, the best strategy is not to be too jumpy and if possible rely on long term HODL.

Very Well said, having a good plan is very important and should be the starting point but it does not override the occurrence of the beer market which is why I described the nature of the downtrend and a possible way to maneuver and still make profit within it, that's if you don't feel that waiting for full recovery would be good for you.

i dont wanna sell my holding just to cut the loses and re invest it to another posibility of loses. if i invested to something i make sure i gain for it. the market is volatile is why worry if time comes the coin you pick will rise again. i chose to wait even if how long it is. the most important thing in chosing coin is to done some research to make sure that the coin will survive in market chalenges.

everyone said and put forward the theory easily, crypto trading is a difficult mystery. no one can guess the price and movement, even with any analysis. I began to think there was a group that played monopoly managing prices by spreading negative issues. at the moment I do not have long-term and short-term trading all of which are not profitable.

Well, it would be nice to read and example how to earn by investing into ethereum while it is falling almost whole the year. Let us be honest it is impossible to earn money by investing on bearish market. Various speculations may be profitable but not investing because investing mostly means buying and holding. By the way I have noticed how hype around crypto currencies has been disappear since beginning the bearish trend because retail investors cannot earn on falling market. Bearish market is market for professionals so we need to wait an uptrend to begin earning again.

There are two best variants I mean either to be a bear or to be out of market. I consider that any other strategies are dangerous or useless. I am pretty sure that the best choice for investors is to wait new bullish market. All kinds of speculators can try to earn in the current market situation but it is quite risky.

Any strategies are useless now because of the price which is really unpredictable. Holding, patiently waiting and not to panic are only good if the market price will going to rise steadily or a bullish run but with this current market performance which is constantly fluctuating, i could say that the best strategy is to sell it high and buy low it again or stop investing while waiting for the market to become stable again. Anyway small earnings are better than losing.

We have reached to a point that low market took a long time to recover and reason for these situations is our wrong actions so we should resolve that first. The mistake is we sell in low market that is enabling the market price to go down again and besides this we expect a better market price. If you want to survive in this market you need to buy as much as you can because in future you will get much benefit and this is the only benefit we have in this current market.

When the whole market is falling down, we do not have any means to avoid the potential losses. It is an inevitable thing, no one could avoid by doing anything. If one market is falling and another one rising means, if your research helps, you may switch over. But currently entire crypto market is falling down, you may book loss or may wait by watching out the potential loss calculations.

But by holding coins, you are not losing any money, so why sold it anyways? I only see two possible ways to survived here, either do day trading and short your coins, or just continue to hold and buy it dips. We might be struggling for many months now and its really hard to see your portfolio going down 60%-70%. However, if you have the mentality of those early adopters, (didn't sell or panic), then if we get a change a bounce back and recover and see bull runs in the next coming years then its worth it to hold and purchased coins specially if they are in a dip and very cheap.

Right.I agree.Holding with this kind of market condition is still what most of us are doing.We may not get any profit for now but atleast we're not losing either.So i would still continue buying potential coins in this current dip and wait for longer time to finally see the market recovered and sell them in a higher price.

Bear markets now can only hold, but if we have the opportunity to invest in surfing, that would be better for us, but it is risky to make you lose. quite a lot of capital

So far, very informative replies from high ranking accounts. Yes totally agree with them, don't sell your coins when the market is down. Don't let emotions come in the way. Just like today bitcoin climbed down again below $6000. For some it would be a panic mode. But, for some that is an opportunity to do "buying in the dip."

With the market today, the best thing to do is have money to buy, the price of coins in the future I am sure they will grow again, there is no reason to fear you.

There are countless strategies. Each trader just have to stay groomed to one or two, depending on which suits better.

Swing trading is a strategy that takes advantage of the short-term price movements in a coin’s chart rather than looking at the large macro trend. Within a confirmed upward or downward channel of price movement, there will always be small peaks and valleys in the price as it moves in that general direction. Experienced traders can thus make money off of the micro trends, buying the lows and selling the highs during a bear market. In this scenario, market volatility during crashes is the ideal situation as it provides the most number of useful local optima in the chart. In order to swing trade, you must become familiar with the various forms of technical analysis such as pattern formation, and indicators such as RSI. This is only recommended for people with a high risk tolerance and significant experience using technical analysis to analyze short-term movements.

Just fix in your mind that we are in bear market which means we are going to lose our market value,so we now have two options to make benefits just hold and wait for the bearish trend to end and sell when the prices spikes or just sell at the beginning and buy later at the bottom line.

If you have a lower risk tolerance and do not want to use more advanced trading methods, the next best thing is to hold onto coins that generate passive income regardless of market activity. There are many coins that can generate passive income, but the two main types are staking coins and exchange coins. Staking coins, in exchange for governing the network, provide additional coins for each coin used in the staking process. Expect somewhere between a consistent 5% to 10% annual return for staking in most coins. Some proof-of-stake variants, such as Ark’s DPoS, provide higher returns than more decentralized versions of staking. Exchange coins provide various benefits on exchanges such as reduced fees, and some, such as KuCoin’s, provide a form of profit-sharing in which a percent of exchange fees are returned to coin holders. The percent return from these coins is directly tied to volume, which may fluctuate, so it is difficult to ballpark. Staking coins are much more consistent and similar to dividends, whereas exchange coins are still speculative in that you are betting on the success of a particular exchange.

As experts say: "Patience, discipline, and self-control are the requirements to be a successful investors."

These characteristics are very simple, and yet so effective during bear market when prices are down and continues to go down. Scary moments for some investors. To overcome fear, think of long-term investment and control your emotions. Uncontrolled emotions might bring you to bigger losses.

This is a quality piece; I like how you illustrate your method with an example as well as that last bold–sentence. However, in my experience, I found that cutting losses and recouping is usually harder than holding, and by the time you recover your losses, the market rebounds and you find out that you would have profited more if you had waited it out. Besides, trying to recoup puts a lot of pressure on you, and makes a feeling that always kicks in whenever you trade that it almost becomes like pathological gambling chasing behaviour.

I think the best way to survive the bearish market is to be patient and avoid panic sales,hodl so as when the market bulls you'll maximize huge profits

You can't survive in a bear market, you can only understand if you survived or not after bear market ends, this market is uncertain so any action is risk.

It's utmost crucial to have and follow your own strategy in trading. Whatever happens if there is a bull market or a bear market you buy and sell when you previously planned to.

To survive the bear market is just to hold. If you cut your loss on bear market then you have weak mind as the coins are on their downs or lesser price than the usual price you bought it. Cutting your loss is a sign of uninterested what the market can do over time onto your investment. First you need to understand what bear market is and what would be the next season after that.

Cool.
There is not much of an option.
Buying back is the best way, in the same coin which you already knew how it flows.
Switching will just take you a lot more time to look back at its history and how the movement of price works.

Best to figure out to stay than making errors again. You did once then be better later.

I agree. The mentality and readiness of a person plays a lot in how his investments would move out, especially in times of losses, or in those moments when the market is not doing good, which in these days, has been becoming quite common. Therefore, I think one should really be patient and know what are the proper strategies to make sure that an investment would not go down south. It's easy to be blinded these days and go down the easy path to avoid losses; however, at the end of the days, all those strategies won't really be a good thing to do because it would not amount to anything good.

That is not surviving, that is just you not having a choice any longer. If you already know what you are doing, you could have sold when the market was overbought, and look forward to how the market is going to be playing out during the bearish trend before even deciding to hop in without forgetting how much stop loss is a necessity in a bear market. All these things I have mentioned requires knowledge and if you do not have them, and you want to trade a bear market, you cannot survive it and a lot of people only use patience as a cover up for their ignorance.

Yes buying back is better than experimenting them too much,but it is impossible to survive from the losses completely unless we sold the holdings at the beginning of bear market.

You have written so well. But what you may be missing out from your analysis is how do u know when to cut your losses I.e how to avoid a bull or bear trap? Crypto these days is becoming too unpredictable due to manipulation.

Although I had taking a risk at times to cut my losses and re-entry the market and it favoured me.

Exactly! What makes you survive a bear market in the first place knows what to do and if you do not know what to do before the bear market even starts, you are just going to end up caught in the middle.

I have seen how some people emphasize so much on patience, but I believe that is just a term used so as to make them just stick with the idea that they have made the wrong choice right from the onset and they are just looking at how they will be able to switch to the long term and look forward to the value going back to where they started from.

Hello friend ,

Its very helpful for beginners like me . I had a lots of details from this post and thanks for everything.

And Hope you will upload more posts like this to help other people.

Good luck and Thanks again.

You have some valid point. What you are saying now is that, if any trader monitors his or her trades, it would be a good thing as the investor can place his or her stop loss and lose just a little than losing a huge percentage sum.

In the bear market if you know how to trade then you would have already cut your losses by applying the stop losses. But if you have been a true hodler and stuck with your favorite coins then I think averaging it down by buying back at lower prices is the ideal strategy provided that coin is not on the verge of dying.

Follow your trading strategy without letting emotions get the best of you. Get our of losing trades at 1-2% loss, it hurts but it's alot better than -50% loss. That's catastrophic.

Traders must learn to let go of their emotions totally else making good trading decisions could be impossible. Also, the use of stop-loss can never be overemphasized, even with good trading knowledge, trade can still go south. Stop-loss is the way forward.

I would just go with whatever you stated in your conclusion and thats going with the market recovery and doesnt matter how much time it takes because most of the time it can very huge. For example someone who invested back in January might be in the state of shock as they invested at the prices which were ATH of this year. We have not found that ATH again since then and thus its really hard to wait for such long period of time. I guess its better to wait and look for an opportunity whichever is close to the entry of our trade and make things better.

I'm not doing day trading because I'm afraid of the super volatility of the market. For me to survive on the bear market and also to cut my losses, I added additional cssh flow. I always join airdrops and bounty campaigns. Through that, I will get other source of income.

If its bear market then stay away from alts and keep you Bitcoin bottom line stop trading for a moment. Why risk your coins for a few profits in exchange for a high risk of loosing more. There are day traders out there who still trade and expects only small profits like 1-2% but for me its better than nothing.

Day traders are always survive in the bear market because currently sudden fluctuation is happening in anytime but day traders are earn some profit in this situation. So they know the sudden hype of market and how to choose the right platform. My suggestion is experienced traders are continue the day trading and new traders are investing in long term investment.

Exactly, the moment you still make good profit during the bear market is great but you will just know if you really did good is when the bear market ends. Cutting loss doesn't mean you succeed but maybe because you make a bad decision to buy that coin without any study and the result is negative. Always invest with good coins so you will not be force to sold your token even at a lower price.

This say patience is a virtue therefore if you believe in this then better have patience and continue to wait until bullish run will start just be sure that you are holding the right coins and you just invested what you can afford to lose so that possible losses is bearable.

History price of crypto will help to know support and resistance level, so when we think the price on the support area we can decide to buy and dont forget to use stop loss because no one can make prediction by accurate 100%. Use stop loss on everyday trade is apart of risk management that we should use to avoide huge loss.

There are so many things you can do to survive a bear market. Bear has been persistent for some months now and it has rendered so many traders to zero percent. To cope with bear market, one must be fast in learning. Don't be greedy when in profit

I feel you bro, this is well experienced in BTC

seems its a different behavior with alts

We should have a different approach in BTC tradings, normally setting cutloss to a higher thresholds compared to trading in alts

However if I've got twice or thrice hit on cutlosses, time to Pause and reset the plan, proving I am on an opposite directions

I don't believe in cutting losses with your open trade or saved coin.  Cutting losses is very injurious to your funds and more importantly to the future profit that would be made.  It is therefore important to get into good project from the start to avoid a situation where you are unsure and losing money!

Yes, it's make we loss some but prevent us to more.
As we know, we hardly predict when market will recover.

With doing cut loss technique, we can buy back more coin.
if bear market continues, cut loss again, buy back again. That our coin increase.
then, we can hold waiting bull market come

Thank you for sharing, it gives me a nice perspective to apply when the market starts to signal the trend change. Maybe in the future I also apply your method in taking a loss. But in my opinion the most needed transaction is still psychological. Investing in market psychology and investors is the hardest thing to do to help us avoid FOMO or FUD. However, in this market is not absolutely sure 100% completely, so everyone wishes to have the best profit in each transaction.

In this condition you must sell as first as you can. Later on you can keep trading by your half amount of coins or Dollar. When market goes up then this half can make you profit as much as it can recover your loses or at least cut out your loses. If the market really bears I mean if the market goes up and down very continuously then buy when it goes more down. When it goes up again then if it make you sure about 25% to 40% profit then sell immediately.   

Personally I prefer margin trading on 2-3% of the whole money which I have in one trade. Also I always use stop loss and leverage not more than 5x. I like to open short positions in such way.

Patience is a virtue in this industry and that is the reason why you should hold your coins today since the market will always drop depending on the demand and supply.

Bottom line is if you have patience you don`t cut loses, you wait price to go high up again. Price do depends from demand and supply, demand will rise if word continue with adoption, supply will be cut in half in 2020 after halving occur. When you know this facts you need to stay cool headed and keep with holding, cutting loses will just cut your money, nothing more or less, give it a thought.

If we want to survive the current bear market, we shouldn't sell the remaining assets we had but instead prefer to hold those potential coins. Don't let it be sold to bearish price buyers, because they'll acquire the possibility to have the opportunity during bull run happens. Just stay calm and don't lose hope for the coins we had, and typically I didn't apply that stop loss and leverage because I based my trades at the current market trend. The preference of quick selling is my virtue and as long as the asset has low price I buy for it and sell at high after I hold for longer terms.

Simply to survive in a bear market you need to hold to those coins until it recovers. Or take an opportunity to buy more coins you think will rise as quickly as possible like ethereum or whatever coin you bet is more likely to jump in the near future once market price recovers. And talking of cutting losses, I think you don't need to sell them off just to cut losses because as long as you are holding it, you are not in the losing end yet.

Cutting losses is in a way admitting the loss, taking it. Just a quick example. You decide that whenever price hits your entry point you'll sell. You set a stop loss at that level. There's a huge crash and the price lands 10% below your entry point. You admit the loss, sell, and the price recovers above your entry point within a day. Now if you want to enter you're going to have much less coins than 2 days ago. Now rinse and repeat and in the end instead of making money you'll be losing it. Irresponsible trading is a great path to ruin.

This is just a simple tutorial on how to recover some of your invested money to any crypto in the market but it is not really advisable for any long-term trader. It's just a waste of your effort and time of waiting for the right moment which this will make you a weak-handed trader. If you are able to manage to hold for a long time to your crypto then have patience but if it seems that the market is nowhere to recover to their previous prices then you can then apply this method.

I hope i didn't read the sarcasm here. ;D

If all went to the bottom can only wait and buy more at the bottom of the coin no more )

To survive the bear market, all you have to do is just hold your coins and avoid trading or selling in order to preserve the amount of tokens you are holding.

"Never ever cut out losses if you do like to survive"

This is my main rule when i do hold of some assets but there are some exception circumstances on where you do really need to get out because the coin is going to down to the bottom unless if
its a good coin you can still hold and accumulate even more on the bottom price.These would always vary on how you analyze and somehow a mixed of intuition.

if for myself to avoid losses when the market is experiencing a very bad situation then the way that I will use it lasts until the market gets better, because there are so many people who have suffered losses because they panicked selling their coins at low prices

Agreed.I also prefer to hold all my coins particularly when the market is down.It's very hard to make profit during a bloody market so to cut out losses,never ever make a decision that will make you regret in the end.And i'm sure you won't get losses if you never resort into panic selling.

The first thing we have to do when the bear market is holding a coin. There is nothing we can do unless patiently waiting for the bull market. Or you can also join the bounty program, airdrop and ICO projects.

best thing i think is to take your eyes off the chat and wait for the market to recover, because you might be caught unawares if you try to go with scalping

Very educative write up. I am guilty of not taking actions at the right time, in bull market I do forget to take profits, thinking that coins will continue going up forever and in bear, I always think it can't get any worse. Thanks for this eye opening article, I promise to be more proactive next bull.  Thanks

Simple, Just hold while the crypto market still suffering and Instead of panic selling much buy more reliable altcoins , especially In bitcoin while Its still In a high supply which means lesser value. And don't be ever be affected by a fraud news because Ita make you confuse by making Investment here In cryptos.

There is only one solution to stay away of losses and to stick with profit by buying coins more coins if it is a bear market so you will not waste your time till bull market but this is also benefit to get coins of high potential those generates huge profit for you. Now start buying more coins so that you may make a large collection or hold coins in large quantity so a time is coming when you sell for huge profit.

Because you are wrong in your approach. Sometimes its best to take profit at bullish trend because the price can't go on a parabolic rise. Just to remind you that this is a speculative market, so most of the time price jumps so quickly that you will miss profits if you are slow. In bear though, its a different approach, short and then take profits, look for another coins to be bump and they repeat. At least this is a good lessons or a test for everyone, how to survived in a bear season and be mentality tough as well.

Not actually the only solution

There are still a lot approach depending on what a persons right way of doing it like what OP's approach

the downside of buying large quantity at bear market is that you wont really know its floor and might tempt you on selling when the price goes down deeper and deeper

Just remember that unless you aren't selling it, your coins doesn't lost at all

If we are survive in a bear market and cut out of losses I think now can only hold there is only one solution to stay away of losses.it seems that the market is now here to recover to their former value then you can then utilise this system.I assurance to be more defensive coming bull. 

In bear market we can sit silently in bear market conditions we can't sell we will be in loss we can't open positions market may come down

That is a totally different case for someone who is into trading as that idea of just holding won't work. Every trader should be trading with a strategy which is the only way you can have a trading plan. More like, how far will the market go with your strategy if you buy in at certain position based on your strategy? Also, if the market falls back and end up invalidating your strategy, what should you be doing? It is the latter part where the stop loss comes in and that is why it is usually hard for people with no knowledge as they simply do not include stop loss plan in their trade.

Taking your eyes off the chart as a trader is not a smart thing to do. One thing you should always do as a trader is to have a strategy and then get to see how the strategy is going to work out for you based on position to buy, when to sell, and where you should be applying your stop loss.

It is a normal thing that is done if you know certainly what you are doing. A lot of people certainly do not know what they do, and that is why surviving the bear market will always be difficult for them.

Bear market is even better for us and making things easy for us in order to get Bitcoin on low price you will get it in bear market on low price. Using less money for something of high potential is better and Bitcoin gives you this opportunity so never miss this opportunity and try to utilize it. If you have some coins then do not sell it in bear market but wait for bull market is the only solution.