How can you manage potential losses during a crash

[Destnhel]

Losses shouldn't be take heartfully. We should use it as a lesson and also a weapon so it wouldn't happen again. We must learn ahead. Losses is part of trading, but it doesn't mean to make you quit.

[Barbarian]

Losses shouldn't be take heartfully. We should use it as a lesson and also a weapon so it wouldn't happen again. We must learn ahead. Losses is part of trading, but it doesn't mean to make you quit.

This is the correct mindset when trading, when you lose you must try to learn from the experience but you must try to avoid to make that the focus of your next trades, each trade needs to be done because the market tells you there is an opportunity to make money if you try instead to try to be smarter than the market then you will lose even more money as a result.

[jaysabi]

Losses shouldn't be take heartfully. We should use it as a lesson and also a weapon so it wouldn't happen again. We must learn ahead. Losses is part of trading, but it doesn't mean to make you quit.

This is the correct mindset when trading, when you lose you must try to learn from the experience but you must try to avoid to make that the focus of your next trades, each trade needs to be done because the market tells you there is an opportunity to make money if you try instead to try to be smarter than the market then you will lose even more money as a result.

There is no science to trading crypto. People use technical analysis or momentum trading as if these are tangible, reliable things that can be counted on to perform in patterns. They're not. For the most part, patterns self-correct because any pattern can be exploited, and the first to exploit it lessen the impact of the pattern until it doesn't exist anymore. At that point, any "pattern" that persists is just a coincidence.

[jamids]

The strategy of OP is not easy to pull off because the price of bitcoin doesn't easily recover by $500 or crash by $500 every day. Imo it could work but not all the time.

That is why you should do the daily trading and be active, I believe if you have that huge bankroll it is still possible for you to make that happens because their volume on 24 hours is really much far than you can imagine. You can see big exchanges that having like billions of dollars traded on each coin, conpare to your $500 profit is really easy to do. You just need to be active on trading and thats all, no need anything more

The reason why I like to do day trading as oppose to just holding my coins is because of this reason. There is a possibility of being able to profit even if I had lost in my previous trade and the market is bearish. The small price swings are opportunities to make small profit. My intention is to earn small profit because once accumulated it would become bigger and every time I trade, I learn so it would be a great help to my next trades. I will be versatile then because I can profit in whatever market condition.

[4U]

I set my failure or loss by waiting for the price to go down and after that buy it again at the right moment or the right moment because the price will definitely go back up, and preferably trading do not use all the money there, you put money to overcome this loss.

Putting the whole money in one investment is not a suitable idea. Before practically starting some investments, there must be an analysis of the market, the trust factor and much more credentials for the coin or source that you are going to invest into. Only then the decision should be taken with deep concern. Losses are not strange, just follow up them with good rehabilitative skill.

Yes you are right it is not good to get mad about something you are not familiar with, if you have more option try them all as bitcoin as many as investing, trading and gambling but the best one is investing as it is risk free and you will be confidence about your profit, but try to start with small if you find it well and good then go for more investment but keep it in mind that price use to increase and decrease never sell because of low price. Patience is the only thing that will give you profit at the time to crashes in price.

[BillCoin]

Losses shouldn't be take heartfully. We should use it as a lesson and also a weapon so it wouldn't happen again. We must learn ahead. Losses is part of trading, but it doesn't mean to make you quit.

Loses shouldn't be taking heartfully, that's true, and that's  the reason you have to risk management because if you won't, you may find yourself losing more then you could afford to lose and then you will have to take it heartfully.
As said above, the best way to manage loses would be through stop loses orders, when you enter a trade, make sure you know at what point you exit the trade even if you are in a deep lose.
Always take into consideration that stop loses orders may trigger lower then expected as when the market falls it's hard to sell.

[Suslura]

Losses shouldn't be take heartfully. We should use it as a lesson and also a weapon so it wouldn't happen again. We must learn ahead. Losses is part of trading, but it doesn't mean to make you quit.

Loses shouldn't be taking heartfully, that's true, and that's  the reason you have to risk management because if you won't, you may find yourself losing more then you could afford to lose and then you will have to take it heartfully.
As said above, the best way to manage loses would be through stop loses orders, when you enter a trade, make sure you know at what point you exit the trade even if you are in a deep lose.
Always take into consideration that stop loses orders may trigger lower then expected as when the market falls it's hard to sell.

determined at that time, some coins are falling, while others are rising in their price. Then you need to make it and switch to other investments, if there are of course more means to reduce these losses.

[lienfaye]

There's no guarantee in this strategy but it might help somehow if you are looking for other ways to take advantage the current situation. This is also risky and needs enough time to be able to do it but I cant manage to do this as I also have other things to attend to.

What I do during crash is I buy more coins as much as possible. I treat it as a sale dates, but more coins for a lesser value, HOLD and wait for its value to go up again, so once you sell, you already have a greater profit. Key is be patient and don't let FUD get into you.

Well thats the rule that we should follow to earn in crytpos, dont let the dip affect your decision to be firm to wait for the right time to sell and not become a weak investor.

[surix]

Any trading patterns work under certain conditions and assumptions.

Your method suggest that the price will one day go back up after the drop (so your decision of purchase is based on it).

Then ask yourself a question, if you know for sure that price will go up in the future, why you don't already put everything now?

If you assume that future price is completely unknown, your strategy will be very different from the one you stated.

[icecream sandwich]

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.  

I just stay calm and just think positively because if you just stay calm your ego will not affect your overall permormance in you r work because i consider this thing a job yes because i gain money and at the same time i do thing to it. Being pessimistic is just gonna ruined all of your strategy. Because i always think that every after crash or even if i just lose money i always think and keeps on my mind that i will win that bacl again.

[Barbarian]

Losses shouldn't be take heartfully. We should use it as a lesson and also a weapon so it wouldn't happen again. We must learn ahead. Losses is part of trading, but it doesn't mean to make you quit.

Loses shouldn't be taking heartfully, that's true, and that's  the reason you have to risk management because if you won't, you may find yourself losing more then you could afford to lose and then you will have to take it heartfully.
As said above, the best way to manage loses would be through stop loses orders, when you enter a trade, make sure you know at what point you exit the trade even if you are in a deep lose.
Always take into consideration that stop loses orders may trigger lower then expected as when the market falls it's hard to sell.

But that is easier said than done, this is a very known problem in gambling, when a person makes a  big bet and losses that person will have the tendency to try to recover his losses immediately but most of the time this leads to your judgment being clouded and instead leads you to more losses.

[jaysabi]

Losses shouldn't be take heartfully. We should use it as a lesson and also a weapon so it wouldn't happen again. We must learn ahead. Losses is part of trading, but it doesn't mean to make you quit.

Loses shouldn't be taking heartfully, that's true, and that's  the reason you have to risk management because if you won't, you may find yourself losing more then you could afford to lose and then you will have to take it heartfully.
As said above, the best way to manage loses would be through stop loses orders, when you enter a trade, make sure you know at what point you exit the trade even if you are in a deep lose.
Always take into consideration that stop loses orders may trigger lower then expected as when the market falls it's hard to sell.

But that is easier said than done, this is a very known problem in gambling, when a person makes a  big bet and losses that person will have the tendency to try to recover his losses immediately but most of the time this leads to your judgment being clouded and instead leads you to more losses.

That's called the Martingale System, when someone doubles every losing bet on the assumption that because the previous result was X the next result is more likely to by Y. That's not true, each result has the exact same odds of happening because future events are not linked to previous events. Applying Martingale to trading is just as faulty. What goes down is not guaranteed to go back up.

[Qartersa]

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.  

I see you are banking on small wins on a daily basis. Well, good idea! Thank you for sharing your strategy!

I have once made a huge mistake wherein I keep banking on huge wins, yet very momentarily I get dismayed because there is always a 50% chance that I lose a big amount as well. Hence, I am all for making small wins but on a more regular basis.

Nonetheless, I do not think it is good to apply the aforesaid strategy every so often because of Bitcoin market's volatility. It will always be case-to-case basis. That being said, there is always a need to assess the current market before embarking onto any strategies.

[Onews1990]

Waiting is better then just nothing or panic selling in cryptos, So I think we need to do this. If you don't want wait you must be prepared that will be very hard to trade on so bearish market

[ArteMixer]

If you are really smart, you are also able to set up a bot to monitor the status and buy/sell when needed. But the bot won't recognize a crash from a graduate and final fall.

[teleskopta]

Well, in every failure that I made, I'd rather choose to start all over again than stop and accept the fact that I've failed. It is better to try again because it is just one opportunity that have been lost, and there are millions of opportunities out there that is waiting for all of us.

[Maestro75]

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.

I am not sure many people would agree that holding is the best thing to do during a crash. I have read on many blogs that it is better to use a tether technique during a time like that. Rather than holding and waiting for the coin to recover again. Whatever way that is done is not clear to me however.

[Sarastiche]

Your approach is quite okay but with High risk, as there are time when the crash is  always tragic, My rule is to always take part of my capital ones my  stake is at 2X and strategically observe the roadmap of the project or crypto news to determine what I do per time.

[bib24]

Forget panic selling during crash because your losses will be too high, take the risk of holding and be patient.

[trickyriky]

Forget panic selling during crash because your losses will be too high, take the risk of holding and be patient.

Sometimes it is not your fault that you lost something. do not take these losses close to your heart. Go somewhere to rest and relax, and after that return to work.