How To Protect Yourself In This Situation

[Ridwan Fauzi]

Why we should buy at $34.500? Actually that is not mamy strategy. If my stop lose getting reached I'll take a break first, out from the market and I'll go back again later when I ready to trade again.

I always put the entry at they key level point, yeah that is something that I got from my experience. The key level is really important to know, because when the price touch the key level point then the price will go up, at this situation I'll pick 20x laverage and just hold 15 minutes time frame, so I'll get a huge profit in it.

I'll buy again when the candle give a really sign that the price will up again, such as there are three green candle then I should entry to the market. When you have analyzed the chart you may need to see the movement price first. Like me, I'm not a trader who make an analyst and trade directly, I'll separate the time for analyst and the entry.

[maydna]

Given these parameters:

Bitcoin is at 37,000 and you have a stop loss at 35,500 and then a buy at 34,900 to replenish what you sold and the market rebounds back to 35,000 before crashing again to 34,900 and taking with it your last buy.

What is the best approach to guard against this?

I will not try to buy in a rush at $34,900 if I see the price will go down for more because that will make me not purchase bitcoin at a lower price. I will wait for a while and see what will happen to the bitcoin price because sometimes, the price can go down below $34,900. And if we see this situation, the price goes down deeper, and if you buy at $31k-$32k, that will not be a problem even if the price is down below $30k because the price will go up again. The key in these situations is not to panic because you need to analyze more to find a good time to buy back bitcoin.

[maxreish]

Thats what I see it as a problem. Setting up your stop loss to the neareast price where in it can possibly triggered suddenly. I usually had bad entry of stop loss too. But I have read one thread here in forum wherein he explained the right stop loss entry level. He also showed some indicators and some lines drawn as to where we should put right stop loss when short or long entry.

However, this might be a good article for us as a trader so we can manage well our trading using stop loss;
- Determining where to set stop loss

[Imran232]

That is why we need to learn trading. In this situation we have to use long and short trading system. When we see that bitcoin price is dumping then start the short position for trading soo that we can still generate profit if it gose dump. That is why expert traders dose not worry about crypto price they just wait for that signal is it start to go down then my position will be short, or if it is start to go up then my position will be long. Well, if they seen a dangerous position like it is impossible to calculation then they select lowest leverage and also set stop loss what is badly need. So it is my opinion.

[Silberman]

The thing  you need is patience, let the market dictate what it want to do and don't force trade, this day crash has been on the horizon for sometime because the price will always come back to the mean, once a trend line is broken you need to change to get out of the market at the earliest possible time because there will always be another trade to profit from

This is the right way to think, traders think they can actually watch any chart and get profits from the trades they make, when in fact the only thing you should do is to grab the opportunities the markets gives to you, which means that it is important to keep a cool mind when something like this keeps happening with you as it is very common for traders to lose their patience and begin to see their losses accumulate and they make a bad trade and they lose most of their money because of it.

[death69]

Money management is the key to solve the problem, or as I say: a wise stop loss and fund allocation. Mostly, I trade 50% of my capital and set a stop loss so as to protect my funds. You can lose one or two trade, they are not big deals. If you are consistent enough, you can earn back everything on the next week or even the next day. Remember to learn how to control your emotion. Being destabilized in your mental can make your become more greedy and reckless. And in a blink of an eye, you will forget everything about money management and start throwing your money out of the window

Once you become more experience in trading, trust your gut. Nothing is better than your true instinct and intuition

[BuNga_cute]

I agree with using stop-losses to avoid bigger losses when trading. And what the opening post did was correct, so we can do the same for
the current price situation. Which is now at $ 32,000. So we can buy Bitcoin at its current price, and set a stop-loss at $ 28,000. Then just
waiting for the price to go up, I'll partially sell it when the Bitcoin price hits the price of $ 35,000. To be able to buy Bitcoin again, if it turns out
that the price of Bitcoin drops again to a price of $ 32,000.

[dunfida]

The thing  you need is patience, let the market dictate what it want to do and don't force trade, this day crash has been on the horizon for sometime because the price will always come back to the mean, once a trend line is broken you need to change to get out of the market at the earliest possible time because there will always be another trade to profit from

This is the right way to think, traders think they can actually watch any chart and get profits from the trades they make, when in fact the only thing you should do is to grab the opportunities the markets gives to you, which means that it is important to keep a cool mind when something like this keeps happening with you as it is very common for traders to lose their patience and begin to see their losses accumulate and they make a bad trade and they lose most of their money because of it.

Not only on having a cool mind but also you would literally needing on seeing those charts on active manner for you to able to pull off those profits once you do get or see some opportunities for you to do so.
This isnt something that you can just take it for granted and making money on this market is never been easy.Protecting yourself into this situation? This will be varying on good money management skills that you do had.
Playing prices in small margins neither putting up some stop loss or rebuying levels would really be needing good situational observation and making out actions according or basing up to that.
If it turns out badly then try to make another one, this will really be involving lots of trial and error which is normal that you can see into this market.

[palle11]

In protecting yourself and your account you simply need to avoid greed and also use a tight stoploss strategy. By this you can allocate a very minimal stoploss from your account maybe a small percentage like 1% to take your risk of trade to lose and great a larger profit margin. This is how to trade. You can also make adjustment of your profit bit leave your stoploss where you set it.

[Silberman]

In protecting yourself and your account you simply need to avoid greed and also use a tight stoploss strategy. By this you can allocate a very minimal stoploss from your account maybe a small percentage like 1% to take your risk of trade to lose and great a larger profit margin. This is how to trade. You can also make adjustment of your profit bit leave your stoploss where you set it.

That is the most important thing, once you have a profitable strategy the only thing that can derail you from making money in the markets is your inability of using money management skills to reduce your risk, the most important aspect of trading is to trade with an amount of money low enough that if you happen to lose many times in a row you can still recover your money with a few winning trades, this may seem counterintuitive but it is the only way to be profitable over the long term in any market.

[error08]

I agree with using stop-losses to avoid bigger losses when trading. And what the opening post did was correct, so we can do the same for the current price situation. Which is now at $ 32,000. So we can buy Bitcoin at its current price, and set a stop-loss at $ 28,000. Then just
waiting for the price to go up, I'll partially sell it when the Bitcoin price hits the price of $ 35,000. To be able to buy Bitcoin again, if it turns out
that the price of Bitcoin drops again to a price of $ 32,000.

It's not just using stop-loss to prevent bigger losses, how if after the buyback then the price continues to decline?
That's why you need some strategies referring to the technical analysis and probabilities that may happen in the future, in this case; risk management and money management are crucial. Simply don't spend all the money to buy back, only use some and keep some as a reserve fund to buy more if the bear trends take place.

[Issa56]

From the little experience am having after my stop limit have been triggered I won't just jump make another buy order I will definitely wait patiently and see where the coin is heading to or allow the coin to stable or balance first before placing your buy order and I will definitely allow my buy order to be lower than the price that my first stop loss trigger. And after felling my buy order I will definitely set stop lose again because is better to lose 5% of your funds than to lose lose 50%.

[Silberman]

I agree with using stop-losses to avoid bigger losses when trading. And what the opening post did was correct, so we can do the same for the current price situation. Which is now at $ 32,000. So we can buy Bitcoin at its current price, and set a stop-loss at $ 28,000. Then just
waiting for the price to go up, I'll partially sell it when the Bitcoin price hits the price of $ 35,000. To be able to buy Bitcoin again, if it turns out
that the price of Bitcoin drops again to a price of $ 32,000.

It's not just using stop-loss to prevent bigger losses, how if after the buyback then the price continues to decline?
That's why you need some strategies referring to the technical analysis and probabilities that may happen in the future, in this case; risk management and money management are crucial. Simply don't spend all the money to buy back, only use some and keep some as a reserve fund to buy more if the bear trends take place.

This is why money management strategies are so important, there are people that buyback into the market and use all their money to do so and this is risky as if the price keeps going against their prediction then it is really difficult for them to sell again their coins and lose money once again so they keep holding and they lose money as a result of this, but if they only use a fraction of their capital then they can always buy more bitcoin at the reduced price and reduce the average price at which they bought their coins allowing them to become profitable in a shorter amount of time once the price recovers.

[Inkdatar]

From the little experience am having after my stop limit have been triggered I won't just jump make another buy order I will definitely wait patiently and see where the coin is heading to or allow the coin to stable or balance first before placing your buy order and I will definitely allow my buy order to be lower than the price that my first stop loss trigger. And after felling my buy order I will definitely set stop lose again because is better to lose 5% of your funds than to lose lose 50%.

This is the right mindset when entering the market we should use a stop loss to avoid further loses. A better move to set stop lose than hitting a big lose of your funds. The market is unpredictable it might continue to rise or will experience a bearish trend. So this is why we should have a plan when to enter and when to exit with earning. Also, to protect yourself in any situation may encounter always buy at the bottom and take profit when happy.

[ipanks]

Given these parameters:

Bitcoin is at 37,000 and you have a stop loss at 35,500 and then a buy at 34,900 to replenish what you sold and the market rebounds back to 35,000 before crashing again to 34,900 and taking with it your last buy.

What is the best approach to guard against this?

If you can buy at $34,900, then you should hold it, even if the price still go down. But you have another option to cut lose your bitcoin at $34,000 if the price is drop until that price. But if you do that, you will confuse to decide to buy bitcoin at what price. Maybe after you cut lose your bitcoin, you need to wait for a while and hold your money in USDT. And if the price still continues drops, you can buy back again, but this time, you can buy it at a low price. After that you can hold it.

[raji1995naya]

Given these parameters:

Bitcoin is at 37,000 and you have a stop loss at 35,500 and then a buy at 34,900 to replenish what you sold and the market rebounds back to 35,000 before crashing again to 34,900 and taking with it your last buy.

What is the best approach to guard against this?

Absolutely in trading, there is no 100% trading strategy. Actually, trading is one of the high-risk ways to earn method. But if you were able to manage your risk level you will able to sit on profit always.
So according to my view in this kind of scenario, you have to place the buy order just above the next support level. Most of the time price will retest the support level or just turn around above that. So it's always safe and profitable to Keep the buy order above the next support level. And please note that you have to manage your risk at first.

[Maackayon1]

this question isnt so clear but i think when buying, you just need to set a buy price and then wait for it to be picked or rather pick buy at market price. using stop loss is mostly good when selling and you dont want the price to pass a particular price and if it happens you can cut the cut and convert to a stable coin.

[doomloop]

In protecting yourself and your account you simply need to avoid greed and also use a tight stoploss strategy. By this you can allocate a very minimal stoploss from your account maybe a small percentage like 1% to take your risk of trade to lose and great a larger profit margin. This is how to trade. You can also make adjustment of your profit bit leave your stoploss where you set it.

This is the reason I hate using stop-loss actually because I can understand if you are trading 50 assets and cannot keep a track of all of them but if you are only trading Bitcoins then better manually trade and avoid using these features like stop-loss and take profit because the market in crypto swings like crazy and people who have tight sell and buy orders are usually the ones who suffer.

From the little experience am having after my stop limit have been triggered I won't just jump make another buy order I will definitely wait patiently and see where the coin is heading to or allow the coin to stable or balance first before placing your buy order and I will definitely allow my buy order to be lower than the price that my first stop loss trigger.

Actually some traders use a common strategy where they would have sell orders for 2 units less like if the price is 40k then buy order at 38k and sell orders at 42k which is a good strategy and very common and some even trade with 1 unit difference but at times when the market is moving in one direction only, you will get in trouble.

[Distinctin]

Given these parameters:

Bitcoin is at 37,000 and you have a stop loss at 35,500 and then a buy at 34,900 to replenish what you sold and the market rebounds back to 35,000 before crashing again to 34,900 and taking with it your last buy.

What is the best approach to guard against this?

I may not say it was right coz the result still at loss on your side. You better not sell it but rather wait until the market recovers back to $37,000 or even higher.

That is why I don't have to buy when the market is on the hypes. We should have been thinking twice, not too quickly jump into it. We know the possible trend next to bullish and that it got to dump. And if you miss selling your cryptos at that moment, it's a long time to wait to recover or just accept the losses and sell it.

[SirLancelot]

Bitcoin is at 37,000 and you have a stop loss at 35,500 and then a buy at 34,900 to replenish what you sold and the market rebounds back to 35,000 before crashing again to 34,900 and taking with it your last buy.

Quite a situation actually because usually when a drop happen it drops a couple hundred bucks at least. I would say that if you have a stop loss at 35.5k and buy order at 34.9k and you see the stop loss being met then the market is raising again, then better put a buy order at higher value because yes you sold the coins to a cheaper value but it was just unlucky and now moving forward the best thing is to buy at the least possible value.

Another thing you can do is cancel those orders if you believe the market is dropping slowly because usually when the market is dropping but rather slowly it is a sign of a correction happening and you shouldn't worry too much.