How can you manage potential losses during a crash

[Kakmakr]

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.  

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[odolvlobo]

There is no reason to believe that this pattern that you claim to see will continue. It is a bad idea to base an investment strategy on it.

[kevoh]

 A lot can happen in 20 days that will mess up your theoretical strategy! What if a huge negative news comes in and the price drops $1500 or more, and then instead of recovering the following day, it drops $500 more! How does one use your suggestion to counter the loss especially when fear leading to panic selling is stronger than most strategies in a bearish market?

[nlcars]

What you do and suggest is the best way to cover up your losses, this is the system how they work in wall street too. They are buying and selling in blocks and do this while the stocks are in  accumulation mode each time they rise or fall.

[Tanaudi04]

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.  

Not good idea though! But this strategy was really a thing to others but it is so risky you know. Why not do this strategy when the altcoins is uptrend. This will give you positive results rather risk of losing money during downtrend. Imagine your Day 1 is 9000 and day 2 is 9450 and so on. The best strategy today is Hold and wait for the green day.

[o_e_l_e_o]

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>

There is no reason to believe that this pattern that you claim to see will continue. It is a bad idea to base an investment strategy on it.

Hindsight is 20/20. Anyone can look at what the market did last week and see how to profit from it. These is absolutely zero reassurance the market will continue to behave like you want it to.

[jjacob]

There is no reason to believe that this pattern that you claim to see will continue. It is a bad idea to base an investment strategy on it.

Not really. It is an established investment strategy to follow, in a highly volatile market with no real up/down trend. If your view is that the price is going to crash violently, or going to shoot up rapidly, it will not work. But in current volatile markets, this is a good strategy to follow. Most traders use it even in equity markets, while dealing with volatile stocks.

[torch2121]

During crash, best is to hold. Just be patient.

[Gibreil]

It is good to see the development per day and at first, I saw that in the end you have your profit then when I review again, I noticed that, you are loses again your money but it is minimal. The minimizing in a total loss is a helpful to back your capital again but I think that it is better to hold on your invesment when there is a great loss to the coin you hold. Hold until it came back.

[CHENIEN]

Many people are complaining about their capital losses. In bitcoin business, we cannot surely all the time that every investors are gaining, sometimes also comes into possible losses. We can only avoid losses if we are curiously monitored price movement of bitcoin.

[0t3p0t]

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.  

This pattern may possibly work if properly used but in my case as long as I don't need my coins, no matter what had happened to the market I will never cut my loss. It is better to wait and hold because chances are either you cannot easily recover that loss or the history of cutting your loss will just repeat itself in the future. I think the best way is to keep our coins and relax then wait it to bounce back or if you still have money to invest then buy more when the price still goes down. It will surely make you more profits than just looking at the market and doing nothing. But we all know that we all have our own or different strategies and methods on how to avoid or recover loss but it always depends on every situation.

[CryptoBry]

Good idea and I think one can indeed use the strategy to gain back what has been already lost due to the 'crashes' happening with Bitcoin for the past many weeks. The thing here is that not many of those who bought Bitcoin at $18K are actually interested in trading as they are mostly in the "hodlers" category. They will surely find it difficult to be watching Bitcoin everyday every hour waiting for those little surges and dips. I am still hoping though that within this quarter Bitcoin can make some grounds if not exceeding the $15K level.

[djangocoin]

Just a hunch, but am guessing most who bought at a ATH are probably not going to be particularly skilled traders, and are almost invariably going to lose even more if they attempt this convoluted and risky strategy (and that's assuming the patterns you pitch even hold true) lol

[lablab03]

During crash, best is to hold. Just be patient.

nice answer.  Lol honestly hodl is the best strategy and patience in doing trading .cause its not safe if you sell while the price is decreasing it will cost alot, so we need to ride the bear instead of selling 'cause there's no permanent situation, and indeed it will climb again after the bearish.

[Kprawn]

I like this, but unfortunately the recent price history tells another story. In the last 30 days the price has steadily gone down,

and we only saw 3 or 4 instances where there was a slight correction. Your timing will also have to be spot on, for this to

happen. If the price does not correct, then you just created another loss bracket for yourself. http://prntscr.com/i9x3ce

Your bots will have to be reliable, if you going to do this.... Day trading is even more complex that most people think. 

[Erza]

I do not think that this startegy is really work, may be if you have enough bankroll to support what you lose from before then it might do. But mostly people do not have this budget to start to invest again. Like for now if you start investing again how much do you think we need to make it back at $18,000 again? From your total loss untill this day?
And if I can suggest, may be let it be for a moment and then it will be start to raise again and you will get back what you loss before

[jseverson]

I don't know man. I mean, I did see the pattern you observed, but I honestly would not expect the trend to go on for three whole weeks. That's an eternity in Bitcoinland. Three weeks ago, we were at around 13k USD. We've had two or three massive price swings since then, and for the worse at that. I suppose they could just stop at any point, but they could be at a deeper hole than they were initially by then. Trading isn't for everyone.

If someone is upset about their losses and isn't patient enough to wait to at least break even (if that even happens lol), they should just cut their losses and move on. Bitcoin was never a guaranteed money maker, and no strategy will change that.

[mezzaluna]

Potential losses can be prevented because there are a lot of ways to invest cryptocurrency. We can invest in different kinds of cryptocurrency and hope that not all of those tokens crash. If that happens then all of your investments would go to waste. Some prices of other tokens increases significantly and this is one way to prevent losses. If crashes happen and you really cannot get back the money you have invested, then you can do something productive in order to gain what you have lost.

[Mometaskers]

Just a hunch, but am guessing most who bought at a ATH are probably not going to be particularly skilled traders, and are almost invariably going to lose even more if they attempt this convoluted and risky strategy (and that's assuming the patterns you pitch even hold true) lol

Those are probably who only heard about bitcoin in the news and decided to take a plunge expecting the price to far exceed $20,000. I can just imagine how they are feeling now at $8000. Worse is if they sell then they've really had a loss.

I don't know man. I mean, I did see the pattern you observed, but I honestly would not expect the trend to go on for three whole weeks. That's an eternity in Bitcoinland. Three weeks ago, we were at around 13k USD. We've had two or three massive price swings since then, and for the worse at that. I suppose they could just stop at any point, but they could be at a deeper hole than they were initially by then. Trading isn't for everyone.

If someone is upset about their losses and isn't patient enough to wait to at least break even (if that even happens lol), they should just cut their losses and move on. Bitcoin was never a guaranteed money maker, and no strategy will change that.

Well, that would depend on how bad they really want the money back. It has already hit $20,000 so there's a POSSIBILITY that it will again, which would be the right time to sell to at least get back the capital. So it's a choice between cutting losses now or PROBABLY making a profit later.

[grimesrhymes]

A lot of day traders try such a strategy but the danger is always that the market recovers rapidly and then you miss out on that because you've just sold looking to rebuy back at a dip. If the strategy pays off it's great but it's a big risk to take.