The market is not your friend: Don't trade selfishly

[palle11]

This is a little help I can offer to you beginners here based on my trading experience. The market is never your friend, it can burn you really hard

These factors to be listed below, I group them into the fold of selfish trading.

Avoid trading with lots size that your account can't withstand a longtime wave against your position: Apply money management in your trade strategy. Measure at least one percent or lesser risk per trade, don't be greedy

Avoid martingale pattern of trading without stop loss: Don't wish to take up all the profit in one day. If you wish that, you will be in tempt to use martingale and you are opening your account to risk of closure.

Always activate your stop loss: Very important. The good part of stop loss is that you can have more opportunity to make the profit back because you have just lost only little percentage of your account and you can get in back.

Stop loss is more important than take profit: Meaning that you need to use stoploss. You have the opportunity to keep growing your profit if the market is in your favour. You can adjust your stoploss into your entry price and hit your profit harder.... Good feeling, smiles 

Don't over trade: There are good and bad days but whichever you meet, be moderate in how many times you are in the market or how long you stay there. Very risky if you don't apply stoploss.

Don't stay in the market beyond necessary: Yes again it is important. Trade with caution.

I wish you all good and profitable trading year.

[Oshosondy]

Well! This few information can help newbies, trading can look simple to new traders until they are losing a lot of money, trading should be taking easy and patiently with no greed. Trading should be done in a way the liquidity will not be too high, this is the point of failure for many traders but mostly new traders. But to be sincere I do not make use of stop lose, I like to be on the screen when I am trading, and anytime I want to do something, I will make sure I close the trade especially if I want to sleep but on some occasion if I see the market will be bullish overnight, I may leave the trade open. There are many times I do use stop lose that will be against me. Even recently, bitcoin was at $38600, I set stop loss at $38300, the market decreased below $38300 to $38230 but before I woke up, bitcoin was already at $38800 and rallied up to over $40000. Stop lose has its own disadvantages too.

[cryptoaddictchie]

Nice guide. In trading stop-loss is the most useful tool for me. It always lessen the impact of possible losses. Unless there is a crash that happened prior to your set up that will easily make your funds liquidated.

I set stop loss at $38300, the market decreased below $38300 to $38230 but before I woke up, bitcoin was already at $38800 and rallied up to over $40000. Stop lose has its own disadvantages too.

Well you can't possibly know the possible closing price, you should increase your margin and don't do high leverage that have close liquidation call. This is highly risky since bitcoin moves very volatile at 1000 range. Dont sleep on your set if it still have an unsure set up of SL. But that's how risk works. Maybe that is only unfortunate event.

[Oshosondy]

Well you can't possibly know the possible closing price, you should increase your margin and don't do high leverage that have close liquidation call. This is highly risky since bitcoin moves very volatile at 1000 range. Dont sleep on your set if it still have an unsure set up of SL. But that's how risk works. Maybe that is only unfortunate event.

The example I used was a future trading though which makes your comment to be correct but there are some times I used stop loss for spot trading too which requires no margin at all, but only knowing the market price of the coin I trade decreased and the stop loss price initiated but upon waking up the next day or after a long day the market price has risen. The stop loss can be helpful though, especially during abrupt price drop like when bitcoin recently drop from $34,000 to $28000 before the bull trend continues.

[palle11]

Well! This few information can help newbies, trading can look simple to new traders until they are losing a lot of money, trading should be taking easy and patiently with no greed. Trading should be done in a way the liquidity will not be too high, this is the point of failure for many traders but mostly new traders. But to be sincere I do not make use of stop lose, I like to be on the screen when I am trading, and anytime I want to do something, I will make sure I close the trade especially if I want to sleep but on some occasion if I see the market will be bullish overnight, I may leave the trade open.

Thank you for appreciating the information on the thread.

And such way of trading is called scalping trade. Is also a way to trade depending on your strategy. It is a short time frame trade, like minutes and few hours.

There are many times I do use stop lose that will be against me. Even recently, bitcoin was at $38600, I set stop loss at $38300, the market decreased below $38300 to $38230 but before I woke up, bitcoin was already at $38800 and rallied up to over $40000. Stop lose has its own disadvantages too.

Yes true you said because it is painful to see you have lost a trade order slightly while price start going your initial direction but you won't understand the advantage and benefit of stoploss as it pulled you out and you still have your balance .

Do you know that price can also keep going down after taken you off. In such time what do you think will happen to your account that wasn't protected by stoploss. If you keep trading without stoploss, you will have an experience that you won't like. Trading with stoploss is the professional way to trade.

[odolvlobo]

Avoid trading with lots size that your account can't withstand a longtime wave against your position:...
Avoid martingale pattern of trading without stop loss:...

Those sound like gambling tips. Gambling with BTC trades is ok as long as you realize that you are gambling and you are likely to lose in the long run.

Always activate your stop loss: ...

There are certain reasons for using a stop-loss. They should not be used in normal trading. There are several reasons for avoiding the use of a stop-loss, but basically using a stop-loss is a buy-high-sell-low strategy, by definition.

[OcTradism]

On the market, the only friend is a market trend. Follow the trend and you will win. It is true only if you follow a trend, and don't use leverages as with leverages, your isolated or cross margin balance can be liquidated with some weak-downs along the way. Even the trend is upwards, you and yours can be liquidated.

The market does not mind about your appearance on the market as you are only very minor element, as a sand in a desert.

[tranthidung]

Always activate your stop loss: Very important. The good part of stop loss is that you can have more opportunity to make the profit back because you have just lost only little percentage of your account and you can get in back.

Stop loss is more important than take profit: Meaning that you need to use stoploss. You have the opportunity to keep growing your profit if the market is in your favour. You can adjust your stoploss into your entry price and hit your profit harder.... Good feeling, smiles  

Stop loss order can be failed if you don't set up trigger for it. Let's read the Stop limit order. You need to choose a good price gap between your stop loss price and your stop limit price. Sometimes price crashes too quickly and a narrow price gap between 2 orders won't help you.

Stop loss orders can be used as Positive Stop loss orders. In this approach, it will help you to manage to earn some sort of profits before the price drops further and before it touches the lost price.

[qwertyup23]

I read an article posted on reddit that most of the day-traders nowadays lose 97% of their capital. These numbers are outrageous considering the fact that only 3% of the day traders profit and 0.04% earn above the wage of a bank teller.¹

As I was reading that article, the problem lies on people who quit before they actually learn about the basics and the fundamentals. Trading can be extremely unforgiving especially if you do not have the patience and the determination to learn. My advice would be to always check the market and to forecast possible price drops to at least avoid this situation.

¹https://www.informedfinancials.com/2020/12/29/is-day-trading-for-a-living-your-dream-job-get-another-one-study-says-97-of-day-traders-lose-money/

[libert19]

'Stop loss is more important than take profit' — This! Your losing trades will get significantly lower if you just follow this.

[palle11]

'Stop loss is more important than take profit'

More important because you have more opportunity to put up an order again rather than allowing your loss to take your balance off.

— This! Your losing trades will get significantly lower if you just follow this.

If you keep losing after you put in fresh order, then you have to pack up and go learn more about trading or change your strategy.