How can you manage potential losses during a crash

[indrakusumaindra]

The most common answer to this question will be to hoard and to wait for the correction to reduce or elimate your potential losses. <You only lose money, when you sell at a lower price than what you bought it at, right>

My suggestion to reduce potential losses, might sound a bit controversial, but it might just work in the current environment.

What I have noticed lately, is that the price is dropping within a $500 margin daily and then recovers. <lots of mini crashes and mini corrections>

So in theory, If you were one of the people who bought coins at say $18 000, and IF you sold now at say $9000, you would have lost more or less $9000. <Some people panic and sell at a loss>

My suggestion : Use these daily crashes to your advantage. Buy more coins when the price falls with $500 and sell when the price goes up with $500 again. After trading fees, your profit will be anywhere between $450 to $490 per coin/day.

Take the profit, put it aside and repeat this strategy until you have chipped away at the potential loss that you would have made.

Day 1   - $9000
Day 2   - $8550
Day 3   - $8100
Day 4   - $7650
Day 5   - $7200
Day 6   - $6750
Day 7   - $6300
Day 8   - $5850
Day 9   - $5400
Day 10 - $4950
Day 11 - $4500
Day 12 - $4050
Day 13 - $3600
Day 14 - $3150
Day 15 - $2700
Day 16 - $2250
Day 17 - $1800
Day 18 - $1350
Day 19 - $ 900
Day 20 - $ 450
Day 21 - $ 0

In 3 weeks, you can eliminate any possible losses, if you follow this example. This is definately not a guaranteed recipe for success, but given the current situation, this might just work.  

well i dont think this will works, trading and buying coins is really do need a sharp instinct to predict the movement. Its hard to do and sometimes you doubting yourself and when you see sharp grow you would afraid to sell your coins and when its down you regret your decisions, the points is its really hard to do what you say cause there is limitation and its different for each traders and this condition that makes traders have a different point of view. I still think hold or trying to trading to get more coins is the best way to manage lost.

[Fujiati]

for me to reduce the potential loss that is by adding to invest when the market price decreases. I will continue to hold back the bitcoin and altcoin that I have until the market price rises again.

[Rnd2012]

It's very hard hard to find getaway when your investment go down only one option you have to wait up market increases so the stratigic plan requires here.

[pandanaran]

This is easy to say and I appreciate it, what matters here is how can we know when the lowest and highest prices between collisions and correction, we may actually lose when doing that. Some users suffered losses due to unfavorable market possibilities and the possibility of buying at random, so my advice is to hold on first while learning more about trading with minimal capital if you experience losses due to your carelessness when buying.

[developer101dev]

This is easy to say and I appreciate it, what matters here is how can we know when the lowest and highest prices between collisions and correction, we may actually lose when doing that. Some users suffered losses due to unfavorable market possibilities and the possibility of buying at random, so my advice is to hold on first while learning more about trading with minimal capital if you experience losses due to your carelessness when buying.

The best thing to do in order to take back your losses is to still continue on trading because in this way you will still have a chance to earn profit  depending on the situation in the market.

[CHENIEN]

Based on my own experienced that not all the time we can gain always a profit on this business, most especially when we are not a good and strategic person without using good timing on every price situation. Like for example investing on a very low quality cryptocurrency tokens that price are more on dumping without furthermore recovering of price value, so it is already a form of capital losses, but unlike investing on high quality coins like bitcoin, the risks are quite different because bitcoin price will surely growing up again, all we need to do are on a long holding until price back to the higher level.