How To Protect Yourself In This Situation

[elisabetheva]

Well, I think you can't protect yourself in this situation. BTC price volatility is jumping through thousands. Maybe you will have more grains if you will make bigger interval between buy/sell orders but no one can guarantee you that price will go down and down instead of up and vice versa.

with an uncontrollable increase because it is indeed a fast movement, one must be prepared that what is going to be done is full of high risk. if you don't know and want to take a high risk, it's better not to continue.

in fact, if you can anticipate the fast up and down movement, even though the difference may be quite large and it can be done with careful consideration, it will be profitable, but it can also be detrimental. the important thing is if it is decreasing as long as you want to be patient and not panic, then you have to be patient to wait for it to increase again so that it is time for execution, then it works well.

[Ziskinberg]

Well, I think you can't protect yourself in this situation. BTC price volatility is jumping through thousands. Maybe you will have more grains if you will make bigger interval between buy/sell orders but no one can guarantee you that price will go down and down instead of up and vice versa.

with an uncontrollable increase because it is indeed a fast movement, one must be prepared that what is going to be done is full of high risk. if you don't know and want to take a high risk, it's better not to continue.

in fact, if you can anticipate the fast up and down movement, even though the difference may be quite large and it can be done with careful consideration, it will be profitable, but it can also be detrimental. the important thing is if it is decreasing as long as you want to be patient and not panic, then you have to be patient to wait for it to increase again so that it is time for execution, then it works well.

Market anticipations have always been our practice since before but sad to say is that we mostly think of the negative side rather than the positive one. People are selling their Bitcoin is because they have worries and they are anticipating the market it falls.  Panic selling is commonly what we heard and everyone is talking negatives then as the market shows just a few declines. Sometimes they are right but somehow, their action could also bring them losses instead of profit.

Buying at $50k and then sell it at $48k because they saw the downtrend? That what will happen to impatient and doubtful investors.

[kramchers]

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?

At the moment the price of Bitcoin was in between 51k$ up to 52, 000$ plus. Implementing scalping into Bitcoin is not applicable for \the newbies but if you think you are fully knowledgeable in doing the actual trade in the exchange platform you can apply it, but if not, never try to do it. So, if you want to earn via Bitcoin trading it is much better to hold it in the long term, this is one of the best thing you can do
now actually.

[Xinarae*]

It is easy to deal with any situation if you have a good knowledge of the market and can analyze it properly. Bitcoin investments have a long wait if the price of the currency goes down wait patiently without any worries the price will go up again crypto market means rise and fall. You have to control the situation yourself and you need to know the trading techniques before buying and selling will have to wait until prices go up.

[ivankoh]

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?

In my opinion, you were right to cut your loss in this situation.  Some new traders have a panic along with leverage + margin.  it caused an utter panic to my friend.  Usually I cut my loss with a smaller slip.  In this case of you I would extend my stop loss range and buy back at $ 34.5k. 
But if the stop loss was out of the right range and didn't get the right price back, It was really detrimental.

[boyptc]

Holding is not a variant if you find out that you made a wrong order. If a trader always plays on shorts then it's better to buy/sell immediately again and then to wait for appropriate moment. In such case you'll have a minimum of loses. It's not me saying that, it's mathematics.

Shorts will always be like that.

You need immediate action if you're strategy is to play shorts. You don't see people shorting if they've planned to be long term. But there's still risk on it.

You can't dictate the market and lucky you are if you have minimized your losses doing it.

[RealMalatesta]

Holding is not a variant if you find out that you made a wrong order. If a trader always plays on shorts then it's better to buy/sell immediately again and then to wait for appropriate moment. In such case you'll have a minimum of loses. It's not me saying that, it's mathematics.

Holding is usually used for "buying and holding" and not shorters, if you short that means you are betting on bitcoin to fall which is very wrong because in the long term it always goes up, if you ever buy a long future that doesn't have date, after a while you are making profit on top of profit non-stop since it never reaches that point again, thinking about buying at 7k, you would be basically wealthy by now, but this is not used for that neither, it is used for regular buying bitcoin and storing it aside and waiting for it go up, that is what "hodl" means most of the time.

It is a good way to protect yourself as well, if you want to make sure that you do not lose money in the long term, you just end up with buying bitcoins and holding it and you would be protecting yourself in that situation, which is why I think it is quite obvious that "hodl" is a good suggestion.

[lixer]

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?

Well, it happened and what you can do is to just look for other opportunities to buy in again and then start looking ways and hoping that you’re going to be able to recover what you have lost. It is just how this market is, it is volatile and the risk is too much that you an be losing even when you least expected it, so it’s best to just be trying till you get what is right for you.

Stop loss, good thing about it is that you’re not going to be losing so much of your money, you’re going to be able to break the losses from going really further, and then you’re left with the chance of going for the hit again

[Yatsan]

Good capital allocation through proper bankroll management; basically, not going full YOLO and setting offers using 50%+ of your total bank roll. Just so if you lose the trade, you'll have enough funds to potentially bounce back in your subsequent trades. There's just so much you can do to control your risk through your exchange offers.

This is indeed right. Proper allocation of funds or having your capital management is one of the best key to sustain your needs if ever you have put into a tough situation and you seems to get cornered into a trade that you have done. Managing your funds is a basic yet and effective way on how you can still make use of your own funds to circulate in manner that will be favorable to you and serve as a back up plan for unexpected situations that you have not got prepared with. Manage stop-loss among your trades to control how your funds is working into your trades to be able to lessen the burden you are having in every loss that you are gaining from the trades you are conducting.

[Rasel5209]

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 want to day trade you need to small profit some satoshi. I face this many day and this situation i don't worried. Because first i analyses market then set plane buy and sell rate.

[DoublerHunter]

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?

At the moment the price of Bitcoin was in between 51k$ up to 52, 000$ plus. Implementing scalping into Bitcoin is not applicable for \the newbies but if you think you are fully knowledgeable in doing the actual trade in the exchange platform you can apply it, but if not, never try to do it. So, if you want to earn via Bitcoin trading it is much better to hold it in the long term, this is one of the best thing you can do
now actually.

^ That is definitely right, don't monitor your investment daily or weekly, it makes you become frustrating seeing the price in the market has an up and down moving in the market. Probably the best thing to do is invest now and forgot something a year and never come back after hearing again that the price of your investment was double. There is only one way to protect yourself, be wise and smart in every decision you have to be made. Because there is no trial and errors in trading and it could not be revoked.

[trigger1975]

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?

Sounds like revenge trading: you want to force the market to give back to you what you've lost.

The best way to protect yourself against this is to only enter the market with a sound plan. Don't trade if you are angry about a loss.  If you have to take a loss: accept it, it's part of the game.  Next trade is coming and it's your job to take it.  But forcing the market to give you back your loss isn't working: it'll bite you again and again.

[Scripture]

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 want to day trade you need to small profit some satoshi. I face this many day and this situation i don't worried. Because first i analyses market then set plane buy and sell rate.

Have a plan and do the proper implementation of your strategy, you might not be able to create such buy and sell price in day trading because of the volatility, you should stay focus and every time you buy always set your sell price right away. If its not on your buying price, then don’t buy just stay on your course and you’ll be good enough to make money on that day.

[LUCKMCFLY]

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?

Sounds like revenge trading: you want to force the market to give back to you what you've lost.

The best way to protect yourself against this is to only enter the market with a sound plan. Don't trade if you are angry about a loss.  If you have to take a loss: accept it, it's part of the game.  Next trade is coming and it's your job to take it.  But forcing the market to give you back your loss isn't working: it'll bite you again and again.

This reminds me of a book by Richard Wyckoff, where he advises that you should never enter the market looking for revenge, when you lose in trading it is because someone else wins your money, the Exchange will never lose, when a trader tries to beat the market, they play their emotions, it is as if the emotions make the decisions and at that moment is where you should be most careful because the psychological part begins to emerge, it is very likely that the plan that has been made will be totally changed and it would fall into a huge error.

The market always gives good entries and new opportunities, if there is a loss in trading, it is best to wait for the best opportunity to re-enter, and this occurs with patience.