When 💩 hits the fan...

[Mr_Akbar]

When 💩 hits the fan...

I woke up this morning to find the ceiling in my bathroom raining. Happy Monday, world. 💦

It turns out that when property management installed new toilets 🚽 in all the apartments this weekend, they screwed up installing one in the apartment above mine. Hence the water coming out of the ceiling and the vents.

While I waited for the plumber to come repair 🔧 things, I made a couple trades and it had me thinking about what a trader needs to do when shit hits the fan.

Not every trade goes the way you expect it to, and sometimes it goes sour in a spectacular way. 🎇

When stop losses get blown and people are market selling left and right, what do you do?

Don't panic! ‼️

Panicking leads to poor decisions based on emotion, not on logic. 🤖

Instead, take a breath and evaluate the situation. The goal is to get out of the position as quickly as possible, with as little slippage as possible, while minimizing any further risk.

Depending on your strategy and the trade, sometimes the best decision is to simply market sell and get out ASAP, while sometimes you can get away with sneaking out slowly.

Whether in trading or in plumbing, when shit hits the fan it does no good to panic. Deal with the situation quickly and efficiently, even though it stinks. 💩

[exstasie]

Don't panic! ‼️

Panicking leads to poor decisions based on emotion, not on logic. 🤖

Instead, take a breath and evaluate the situation. The goal is to get out of the position as quickly as possible, with as little slippage as possible, while minimizing any further risk.

Depending on your strategy and the trade, sometimes the best decision is to simply market sell and get out ASAP, while sometimes you can get away with sneaking out slowly.

Whether in trading or in plumbing, when shit hits the fan it does no good to panic. Deal with the situation quickly and efficiently, even though it stinks. 💩

I once had a trader friend who lived by this mantra, "he who panics first, panics best." To him, your biggest enemy as a trader is indecision, the inability to make a decision at crucial times.

So while "sneaking out slowly" can work sometimes, be very careful not to let losses run. It's tempting to wait and wait, trying to get out near break-even. But perpetually "waiting for the bounce" that never comes is an easy way to destroy an account. The problem is, as the losses get deeper and deeper, it becomes harder and harder to lock them in. Hope takes over.

One should always have a "line in the sand" stop loss level where you sell everything immediately without question or emotion to prevent this psychology. Having an automatic stop loss cuts out any possibility of letting emotions take over.

[Lakai01]

One should always have a "line in the sand" stop loss level where you sell everything immediately without question or emotion to prevent this psychology. Having an automatic stop loss cuts out any possibility of letting emotions take over.

Exactly. If you use stopp losses properly you dont need to worry that shit ever hits the fan The hard part is to know at what level you should set the stopp loss, especially for crpyto trades which are way more volatile than traditional stocks. A too tight stopp loss may shake you out of the roller coaster too soon, often right before the upward movement.

[FanEagle]

I will always do this and it is an incredible advice to any new traders out there. When there is big movements going on try to stop trading if you can, it doesn't matter if its going up or down. If it is going down then selling and taking a hit could result with two things, either the price will continue going down and you will be saved from a big loss which is good but it could result with price stopping and going back up with you losing money, plus when you sell it triggers more sells too.

When its going up you may buy and the movement could stop and you may end up losing money or it could continue to go up and keep making a profit but you don't know which one will happen neither however you selling (and many people like you) could stop it going up too. Basically, when small movements happen you can trade but the big movements should be done only if you have to.

[stomachgrowls]

Not bad on giving out a plumbing problem into referring it to trading.Shit scenarios can happen anytime
and this isnt only applicable on some few situation but in all sorts of situation in life that do need some
decision can really have this shit situation if you have wrongly chosen.

Get out and pull out the position?Sounds very easy but i doubt that it wont really be done so easily.
Panic is inevitable no matter how clear up is your mind yet you know that your funds is already at risk.

[butka]

Don't panic! ‼️

I don't quite get it. What is there to panic? Even before you have entered your trade you should have put your stop loss. You know up front how much you are willing to lose. And you are totally fine with the possible loss.

If there is slippage, yes, you may lose a little bit more than planned. But what's the alternative?

How can "sneaking out slowly" be a better option? Say there is a violent move that continues in the opposite direction with respect to your trade for days seemingly without end.

Setting a stop lose immediately is the only option.

Some people say, having a stop loss in your mind (an idea where you are going to exit), enough. No it isn't if you ask me. Precisely because shit scenarios happen.

[exstasie]

I don't quite get it. What is there to panic? Even before you have entered your trade you should have put your stop loss. You know up front how much you are willing to lose. And you are totally fine with the possible loss.

If there is slippage, yes, you may lose a little bit more than planned. But what's the alternative?

How can "sneaking out slowly" be a better option? Say there is a violent move that continues in the opposite direction with respect to your trade for days seemingly without end.

Setting a stop lose immediately is the only option.

Some people say, having a stop loss in your mind (an idea where you are going to exit), enough. No it isn't if you ask me. Precisely because shit scenarios happen.

This has always been a debate among traders. I tend to agree with you.

I know people who operate with "mental stop losses" and I have employed this strategy myself at times. I've found that it makes it much easier to fall into a "bagholder mentality" where you begin rationalizing letting your losses run. You think, "I'll just sell the bounce..." but then, the bounce happens 30% further than you expected! And then you've just broken all your rules and destroyed your account.

Most people are better off using market order stop losses (or limit order stop losses with wide triggers if those aren't available). Just cut the emotions out entirely! If slippage is an issue, you should be spreading your positions across multiple exchanges or brokers, not depending on being able to scale in and out over long periods of time.

[agatha90]

Indeed, if the price of a coin begins to decline, most people begin to panic, whether it will decrease or some time and the day will begin to rise, trading is indeed difficult if our predictions begin to error and panic begins to appear. I have never stopped losing, because I am investing for the long term.

[Slow death]

funny, you noticed a lot of things about trade while you were having water infiltration problems in your apartment, it shows how bad we are in the crypto world. What makes me more curious is:

How long have you trade?

Indeed, if the price of a coin begins to decline, most people begin to panic...

- because they do not have strategies

- because they use money that they can not afford to lose

[butka]

I don't quite get it. What is there to panic? Even before you have entered your trade you should have put your stop loss. You know up front how much you are willing to lose. And you are totally fine with the possible loss.

If there is slippage, yes, you may lose a little bit more than planned. But what's the alternative?

How can "sneaking out slowly" be a better option? Say there is a violent move that continues in the opposite direction with respect to your trade for days seemingly without end.

Setting a stop lose immediately is the only option.

Some people say, having a stop loss in your mind (an idea where you are going to exit), enough. No it isn't if you ask me. Precisely because shit scenarios happen.

This has always been a debate among traders. I tend to agree with you.

I know people who operate with "mental stop losses" and I have employed this strategy myself at times. I've found that it makes it much easier to fall into a "bagholder mentality" where you begin rationalizing letting your losses run. You think, "I'll just sell the bounce..." but then, the bounce happens 30% further than you expected! And then you've just broken all your rules and destroyed your account.

Most people are better off using market order stop losses (or limit order stop losses with wide triggers if those aren't available). Just cut the emotions out entirely! If slippage is an issue, you should be spreading your positions across multiple exchanges or brokers, not depending on being able to scale in and out over long periods of time.

I agree with ever word you said. I think it was ICT trader who once said something like this: "Having mental stop losses is a sure way to go mental". And yes, cutting emotions entirely is essential. People who can't do that, have no business being in trading at all.

[slaman29]

Good to hear you woke up and smelled the shit but I guess it's tough not to smell it when the fan is also blowing it at you;)

My question is this, If you are a trader, don't you already have stop losses to even prevent you from taking the decision to pull out? Don't you already have a maximum "this is the most shit I can handle" level to get out?

Why stress yourself more with deciding when as needed? Let automation take care for you right?

[Hypnosis00]

I agree with ever word you said. I think it was ICT trader who once said something like this: "Having mental stop losses is a sure way to go mental". And yes, cutting emotions entirely is essential. People who can't do that, have no business being in trading at all.

Its a big challenge for us as a gambler, we know losing will come to us at any moment. Anticipation into such thing will be the best solution we can do before it becomes worst. If we still have a presence in our mind, we can make it right. Losing our emotions will be our enemy all the time especially when stress goes out. Tried to stay calm and wisely think what we have to do next.

[BlackFor3st]

Having a peace on mind while making your decision is the best way to do a better decision making. Panic will only cause you some trouble in the end, if you are trader then you need to avoid or if possible erase this kind of attitude.

Though most of the newbies and less knowledge will likely to panic but what they need to do in order to erase it, is to widen their research in order to decide better even in a short period of time.

[Rufsilf]

Whether in trading or in plumbing, when shit hits the fan it does no good to panic. Deal with the situation quickly and efficiently, even though it stinks. 💩

Exactly, panic can only result to bad decisions or actions whereas if your calm then you can focus on the things that needs to address and at the same time you can come up with better solution to bounce back. In trading its not always what we expect will happen so trader's should be prepared to whatever shit that will happen and knows how handle it accordingly.

[traderethereum]

Indeed, if the price of a coin begins to decline, most people begin to panic, whether it will decrease or some time and the day will begin to rise, trading is indeed difficult if our predictions begin to error and panic begins to appear. I have never stopped losing, because I am investing for the long term.

Then they need to learn about controlling their emotion in trading because if they still do that, I don't think that they can make the profit.
Some people can hold their breath while they see the price is down, and they will think about what they need to do.
My advice is when you can see your profit, it is better to sell some part of your coin so you can take your money back while you still save the other part for the next increase.

[Kemarit]

We heard this mantra before, "don't panic", but unless you experienced it before, you really don't know how it feels when all shits are going against you. So yeah, stop losses, having a entry and exit strategy is a good thing to mitigate. But you can't blame those who panic, and let them had a first hand experience on what it is like to wake up, see the on-going dumps and let your 'logic' dictates you want you needed to do on that instances. If you panic sells, and then the market instantly recovers, then good for you, at least you know better what to do next if such cases presents itself again.

[armarsterling7]

But sometimes we can't avoid it. In order to get rid of panic, we should make a plan to avoid risks and follow them. Please keep yourself a disciplined lifestyle and never make a mistake.
maybe the first deal you anticipate is unsuccessful, the second deal is 10% instead of 30%, but discipline will help you keep your profit forever and you will be rich soon day not far away.

[pixie85]

But sometimes we can't avoid it. In order to get rid of panic, we should make a plan to avoid risks and follow them. Please keep yourself a disciplined lifestyle and never make a mistake.
maybe the first deal you anticipate is unsuccessful, the second deal is 10% instead of 30%, but discipline will help you keep your profit forever and you will be rich soon day not far away.

You can't avoid shit hitting the fan but you can avoid panicking that's a sure thing. Panic is your response to STHF situation. How you respond is up to you.
You can't say that you couldn't avoid hitting someone in the face. It's always up to you you are in control.

You can panic all you want but going to the exchange and selling everything at the bottom will always be your fault and you can always avoid it by THINKING BEFORE ACTING.

[Furious 7]

Panic is an emotion that must be controlled, and don't let your emotions break your healthy logic.
the purpose of trading is to get profit and you have to focus on it.

[leowonderful]

If you ever find yourself trading on a leveraged trading site, especially Bitmex, it's extremely important you employ market stops and not limit stop losses. Prices can slip right past a limit stop and not execute, whereas the market stop will at least execute and you'll close somewhere near where the market stop is located. You don't get a rebate on Bitmex with a market order, but it's better than a stoploss not executing.

You should also always enter a trade with a stoploss. It's just as important as your exit and entry, and it's also important you use TA to determine where your SL is located so you don't get hit in a stop run.

[sana54210]

When 💩 hits the fan...

I woke up this morning to find the ceiling in my bathroom raining. Happy Monday, world. 💦

It turns out that when property management installed new toilets 🚽 in all the apartments this weekend, they screwed up installing one in the apartment above mine. Hence the water coming out of the ceiling and the vents.

While I waited for the plumber to come repair 🔧 things, I made a couple trades and it had me thinking about what a trader needs to do when shit hits the fan.

Not every trade goes the way you expect it to, and sometimes it goes sour in a spectacular way. 🎇

When stop losses get blown and people are market selling left and right, what do you do?

Don't panic! ‼️

Panicking leads to poor decisions based on emotion, not on logic. 🤖

Instead, take a breath and evaluate the situation. The goal is to get out of the position as quickly as possible, with as little slippage as possible, while minimizing any further risk.

Depending on your strategy and the trade, sometimes the best decision is to simply market sell and get out ASAP, while sometimes you can get away with sneaking out slowly.

Whether in trading or in plumbing, when shit hits the fan it does no good to panic. Deal with the situation quickly and efficiently, even though it stinks. 💩

The best way to really avoid panic selling first is to trade reliable coins that can still give you a little bit peace of mind even when the trades are going against you, provided you are not into all these margin trading of a thing. The good thing about trading reliable coin is because whatever dip you get when the market goes down, there will always be a rise that will get your investment back to normal level if patience is applied to it.

If you trade shitcoin, there is no way people will not panic sell, yes I understand we have to take things very calm and not jump into conclusion without being sure of the decision we make, but there are some coins we mistakenly trade out of greed that will be good for us to panic sell on time in order to minimize the big loss.

[XCANA]

The major challenge in trading or life in general is risk(knowing how to control risk or how to manage risk), without risk there will be no reward, so, if a trader need fortune, he must undergo risk. Whenever i get into trade, the first thing i think is, how to manage my risk to get out with something tangible.

[butka]

If you ever find yourself trading on a leveraged trading site, especially Bitmex, it's extremely important you employ market stops and not limit stop losses. Prices can slip right past a limit stop and not execute, whereas the market stop will at least execute and you'll close somewhere near where the market stop is located. You don't get a rebate on Bitmex with a market order, but it's better than a stoploss not executing.

This is a very good advice and is essential to implement for everyone trading on Bitmex. I myself always use "market stop losses". Luckily it is the default value. The difference between paying maker fees vs collecting taker fees is negligible in situations where your exit has to happen to prevent unnecessary losses and save your skin.

[Eildosa]

You're right. Situations are different and trading can also go in different ways. Sometimes there are bad days and sometimes good days. You have to get used to it and not panic.

[Kiefner]

You have to be very focused not to react to any external stimuli. It's good that you can keep a sober mind even in spite of what situations you have in life. Emotions really interfere with trading.

[dothebeats]

A very basic yet very useful advice. I myself have been into situations where panic never really do any good to me or to my trading ventures. I remember that one time in Mintpal (yep, 2015) where a certain coin was being pumped at ridiculously high rates. I have already profited a lot from my initial buy in but I have never thought of putting a stop-loss on my trades because I thought that it's still going higher. Fast forward just an hour after, I see the charts painting red everywhere and my profits have then disappeared. The panic in me immediately sold at an extreme loss, only to see that the price climbs back again to a range where I could have profited still.

From then on, I learned how to use stop-loss and accept a small profit than to have no profit at all.

[miropp]

Yes, your story makes a lot of sense. Emotions really interfere with trading. Therefore, if you learn to control yourself, you will become a successful trader. I fully agree with you.

[Shenzou]

Probably one of the biggest reason why people usually panic and start selling left and right when shit hits the fan, is because they haven't done enough research and just do trades based on other people's decisions and ideas, i get it sometimes you don't have the time to make research and look up what coins are goo and what are ones that are not going to do that well so you turn to those who are experts but you will never get anywhere if you just stay a follower, you have to believe in the trade that you are about to make and the coin that you are about to invest in in order to know what to do, and not do things because someone else said to do it. 

[creeps]

Yes, your story makes a lot of sense. Emotions really interfere with trading. Therefore, if you learn to control yourself, you will become a successful trader. I fully agree with you.

Thinking too much about trading makes trader panic, especially if they still affected by their emotion. We have to understand that trading doesn’t always about going up because it can also on a dumped position and yet trading will become more active on the ground. This only make sense if we do it, or else we failed in trading. Emotion is something hard to remove from us, but we have to try and be a good trader.