Mitigating Risk, the One Thing You Need to Know!

[alpha492]

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

[1715250481]

1715250481

[1715250481]

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[1715250481]

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[empoweoqwj]

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!

[kelsey]

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.

[sofuca]

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....

[empoweoqwj]

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

[sofuca]

I just found this, http://www.wallstreetcrypto.com/2013/12/how-to-short-btc-or-ltc.html

Time for some studying!

[empoweoqwj]

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!

[alpha492]

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.

[danyy]

Always put a stop loss sonner than the take profit action.

[odolvlobo]

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.

[alpha492]

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.

[empoweoqwj]

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