How to survive in a bear market and cut out losses

[deonyx]

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

[1715083541]

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[ladner]

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

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.

[akosipepot]

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.

[deonyx]

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

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.

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.

[katri]

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.

[asyakashi]

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.

[pobeditelvezde]

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.

[pobeditelvezde]

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.

[marcbitcoins]

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.

[wuvdoll]

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.

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.

[Kemarit]

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.

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.

[Finestream]

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.

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.

[JackdunR]

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

[bitgoldpanther1978]

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."

[aquaking]

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.

[Mjadon15]

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.

[St4yInTh3D4rk]

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.

[Mjadon15]

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.

[blackhawkeye1912]

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.

[FlamingFingers]

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.