Never sell for a loss - is a Myth !!

[pawanjain]

I have heard many people say that never sell for a loss but what does it actually mean ?

Assuming you have bought a coin at $10 and the price goes down to $9 but you don't sell.
You could have placed a stop loss at $9 but you take "Never sell at a loss" so seriously that you decide to not put a stop loss.
The price goes down to $8 but you are too good at HODL. Suddenly the market crashes and the price goes down to $5.
You could have limited your losses at $9 but now your portfolio is down by 50%.
Now the price has to go 100% so that you breakeven with no loss no profit whereas you could have bought back at $5 and gained potential profits using a stop loss.

This is why I think "Never sell for a loss" is a myth and we should always use a stop loss and play safe with a good risk to reward strategy.

[1715480344]

1715480344

[Bttzed03]

I guess it depends on who is saying it.

It works for people who see the long term potential of a project and they could DCA every time it dips. They also understand the market's big picture and not bothered by small movements.

There are also people who would say that but are actually pretending to be diamond hands. They were caught buying at the top (or near it) and refused to sell until the price keeps crashing down on them.

[stompix]

I have heard many people say that never sell for a loss but what does it actually mean ?

Assuming you have bought a coin at $10 and the price goes down to $9 but you don't sell.
You could have placed a stop loss at $9 but you take "Never sell at a loss" so seriously that you decide to not put a stop loss.
The price goes down to $8 but you are too good at HODL. Suddenly the market crashes and the price goes down to $5.

You see, you have created your perfect scenario for your action to make you a profit.
What would have happened if you would have bought at $10, the coin dropped, you sold at 9, then it skyrockets to 20?
The guy who didn't sell has a profit of 100% you have a loss.

Your scenario works perfectly if you anticipate a larger drop, this indeed happens and you manage to sell near the top, if it's just a small dip just enough to trigger your stop loss then you lose money. In middle September the price was 44k, it dropped to 40k, enough for your 10% sell, then it went all up and up till $66k.

[pawanjain]

I have heard many people say that never sell for a loss but what does it actually mean ?

Assuming you have bought a coin at $10 and the price goes down to $9 but you don't sell.
You could have placed a stop loss at $9 but you take "Never sell at a loss" so seriously that you decide to not put a stop loss.
The price goes down to $8 but you are too good at HODL. Suddenly the market crashes and the price goes down to $5.

You see, you have created your perfect scenario for your action to make you a profit.
What would have happened if you would have bought at $10, the coin dropped, you sold at 9, then it skyrockets to 20?
The guy who didn't sell has a profit of 100% you have a loss.

Your scenario works perfectly if you anticipate a larger drop, this indeed happens and you manage to sell near the top, if it's just a small dip just enough to trigger your stop loss then you lose money. In middle September the price was 44k, it dropped to 40k, enough for your 10% sell, then it went all up and up till $66k.

Thats the catch here. If such a scenario occurs we do make a minor loss and lose the gaining opportunity.
But if we keep repeating this then we could at least gain profits in few of the trades.
Lets say if we keep a stop loss of 5% then we could execute 10 trades out of which at least 2-3 trades would lead in profits.
So eventually we will be in profits compared to one shot loss of 50%.

What do you think ? Am I getting something wrong ?

Always open to learn new stuff.

[cabron]

I have heard many people say that never sell for a loss but what does it actually mean ?

Assuming you have bought a coin at $10 and the price goes down to $9 but you don't sell.
You could have placed a stop loss at $9 but you take "Never sell at a loss" so seriously that you decide to not put a stop loss.
The price goes down to $8 but you are too good at HODL. Suddenly the market crashes and the price goes down to $5.
You could have limited your losses at $9 but now your portfolio is down by 50%.
Now the price has to go 100% so that you breakeven with no loss no profit whereas you could have bought back at $5 and gained potential profits using a stop loss.

This is why I think "Never sell for a loss" is a myth and we should always use a stop loss and play safe with a good risk to reward strategy.

The ones who could read the chart I guess will decide what's best to do when the prices go downwards. If they see the price could go further below $8, maybe he will sell and then buy back at $5. He would prefer to do it that way by taking advantage of the bear trend. Having more coins worth $5 each will make the trader profit still after it if the price pushes up again. But If it's an altcoin, it might not be about the myth which somehow only applies to BTC.

[cheezcarls]

I have heard many people say that never sell for a loss but what does it actually mean ?

Assuming you have bought a coin at $10 and the price goes down to $9 but you don't sell.
You could have placed a stop loss at $9 but you take "Never sell at a loss" so seriously that you decide to not put a stop loss.
The price goes down to $8 but you are too good at HODL. Suddenly the market crashes and the price goes down to $5.
You could have limited your losses at $9 but now your portfolio is down by 50%.
Now the price has to go 100% so that you breakeven with no loss no profit whereas you could have bought back at $5 and gained potential profits using a stop loss.

This is why I think "Never sell for a loss" is a myth and we should always use a stop loss and play safe with a good risk to reward strategy.

Stop loss is the key. It has always been when it comes to trading coins and tokens. I remember the time that I was still into copy trading. Although that most of my copy trading campaigns are at a loss, I always make sure to set stop loss. Same thing with futures trading.

[Taskford]

I have heard many people say that never sell for a loss but what does it actually mean ?

Assuming you have bought a coin at $10 and the price goes down to $9 but you don't sell.
You could have placed a stop loss at $9 but you take "Never sell at a loss" so seriously that you decide to not put a stop loss.
The price goes down to $8 but you are too good at HODL. Suddenly the market crashes and the price goes down to $5.
You could have limited your losses at $9 but now your portfolio is down by 50%.
Now the price has to go 100% so that you breakeven with no loss no profit whereas you could have bought back at $5 and gained potential profits using a stop loss.

This is why I think "Never sell for a loss" is a myth and we should always use a stop loss and play safe with a good risk to reward strategy.

It depends on situation since there are short dumps which one of best example that we shouldn't sell for a loss since it will recover anytime once many people stop to dump their coins, But if we see something huge just the same these days then its good to sell then execute a buy back since from this we can recover for what amount we supposed to lose already. But this is hard to do for newbies since mostly the one they do is sell and leave then regret once bitcoin pump again.

[AicecreaME]

It depends on what coin we are talking here. Buying at $10 even though it dipped to $2 doesn't mean that it won't rise up again, it could even surpass the $10, if you bought a very good coin then not putting a stop loss won't hurt. However, if you bought a meme coin, then it's really pretty alarming not putting a stop loss and getting always updated.

But it's all about how you will manage the risk you'll take when you bought a certain coin. High risk high reward is worth it.

[JunkieMiner]

Fundamentally in case your stock is down 15% since you gotten it doesn't selling it imply that you haven't lost cash?
I used to think YES to this, however presently acknowledge I was off-base, extremely off-base I understood that I ought to rather pose the inquiry contrasted with other stock freedoms does this position offer more potential gain? The way that it's dropped in esteem doesn't imply that it will return more or quicker than some other stock - this was the psycological botch I was making Obviously in case I actually have confidence in the organization, then, at that point, there isn't motivation to sell however the main explanation I ought to choose to or choose not to sell a stock depends on the expected potential gain from that position assuming I bought it at the current cost

[passwordnow]

Selling at loss is normal for those day traders and short term holders. They don't want to see their portfolios at loss and that's why they result in cutting it.
I do agree that never sell at loss but if you think that the coin you're holding is bound to do more dump then that's the time you need to act on for you to mitigate your losses.

[Ararbermas]

I have heard many people say that never sell for a loss but what does it actually mean ?

Assuming you have bought a coin at $10 and the price goes down to $9 but you don't sell.
You could have placed a stop loss at $9 but you take "Never sell at a loss" so seriously that you decide to not put a stop loss.
The price goes down to $8 but you are too good at HODL. Suddenly the market crashes and the price goes down to $5.
You could have limited your losses at $9 but now your portfolio is down by 50%.
Now the price has to go 100% so that you breakeven with no loss no profit whereas you could have bought back at $5 and gained potential profits using a stop loss.

This is why I think "Never sell for a loss" is a myth and we should always use a stop loss and play safe with a good risk to reward strategy.

never ever trade without stop loss especially if you're in a very new coin that making hypes in the market because it has a chance to make a rug pull without knowing.. And also don't assume too much when you're trading wherein must follow your strategies always and dont move your stop loss to prevent regrets, because to be honest that's the common mistakes of every new traders nowadays, so be smart enough mate..

[palle11]

This is why I think "Never sell for a loss" is a myth and we should always use a stop loss and play safe with a good risk to reward strategy.

I do understand that point you made on the thread but I think really that any trader who can have the mystical powers to see the next market direction won't hodl a falling knife. Yesterday barely two hours that I chart btc price and checking later to see price crashing to $46k from $ $55k +, such is good and easy profit. Now why many hodl is not to lose the big bull because sometimes after dumping, you see price increase. Whichever way is part of the trade of cryptocurrency, it can profit you or you lose. It is uncertain market that is highly driven by news and sentiment.

[stompix]

Thats the catch here. If such a scenario occurs we do make a minor loss and lose the gaining opportunity.
But if we keep repeating this then we could at least gain profits in few of the trades.

And from trading your on to gambling, you hope that you make more winning calls than losing ones so in the end even if you've incurred losses your profits are larger than that.

Now, the big question, for this to happen constantly and for you to make gain this way, the coin would need to always end in the positive territory, with a gain higher than your initial purchase price so the profit from buying at low would cover the loss from the dip, meaning holding would still be profitable, so...what the point of gambling when you could just hold?

[michellee]

That will happen to bitcoin but it could happen to altcoin but only with the altcoin that can increase back.

Let say you bought a coin at $10 and the price goes down as you say. You will not lose the money because you are not selling the coin and your money is in the coin form, which you can sell it back once the price is higher.

If the price suddenly drops to $5 and that coin does not have a bright future, you lose your money without seeing the price can increase. But if you hold the right coin such as bitcoin, ethereum or other, you will have a chance to see the highest price and I guess you already saw what happened to bitcoin, ethereum, and other potential coins that can hit the new ATH.

"Never sell for a loss" will depend on your strategy because for me, as long as I can hold bitcoin or other potential altcoins, I can make a profit back in the future, plus I can get my initial money. So it is normal if we have different opinions about "Never sell for a loss."

[Quidat]

This is why I think "Never sell for a loss" is a myth and we should always use a stop loss and play safe with a good risk to reward strategy.

We know that we could still able to recover our losses if we do tend to held those coins off in our wallet which is definitely possible but would have that indefinite time on when it would happen and its up to someone if they do cut lose or had make out some panic sell.
This is situation somehow which it isnt a surprising condition or situation because decisions will vary on each persons
decision whether which one they would choose up.

[Lucius]

It's hard for me to understand that people think they can get rich by trading, or at least make some significant profit - and we know statistically that there are about 5% of them, or maybe even less. Daily trading is something that many prefer and try to make a living from, but it is just one type of gambling in which most still lose in the end.

Long-term investing is much safer and more profitable, and it is definitely less stressful. When I saw that today the price of BTC dropped by as much as 20%, I was not happy about it - but if you invested around the last halving when it was the perfect time for it, then this has no effect on you.

[ven7net]

I have heard many people say that never sell for a loss but what does it actually mean ?

Assuming you have bought a coin at $10 and the price goes down to $9 but you don't sell.
You could have placed a stop loss at $9 but you take "Never sell at a loss" so seriously that you decide to not put a stop loss.
The price goes down to $8 but you are too good at HODL. Suddenly the market crashes and the price goes down to $5.
You could have limited your losses at $9 but now your portfolio is down by 50%.
Now the price has to go 100% so that you breakeven with no loss no profit whereas you could have bought back at $5 and gained potential profits using a stop loss.

This is why I think "Never sell for a loss" is a myth and we should always use a stop loss and play safe with a good risk to reward strategy.

I don't think this phrase is a myth. On the contrary, there are people who just bought a crypto asset and are waiting for its price to double or more, for example. I think they do not need to worry about what is happening on the market, they have a goal and they are waiting for its implementation. But your words also make sense, because I use the stop-loss function, there is probably an opportunity to earn faster, but this category of people includes traders, and those who are just waiting are investors or hodlers. So there are simply several options for achieving this goal, that is, making a profit, only different groups of people go to this goal in different ways.

[Zilon]

This where good capital becomes too intensive. With good capital and a long term hold fluctuation in price wouldn't be too much of an issue. Applying stop loss is only adviced for small capital investors so the market doesn't crash and wipe off your capital but with good capital stop losses might not matter much especially for good projects where a correction move is certain after a deep crash

[hugeblack]

Trading is a strategy that requires a precise and dynamic plan that gives a good view of all variables and therefore "Never sell for a loss" is considered a general term. After calculating the taxes, the profits may be useless, and the absence of a plan ( I bought at 10 and will never sell under than it) may end up losing your entire capital "especially in altcoins"

A stop-loss is designed to limit an investor's loss on a security position that makes an unfavorable move. One key advantage of using a stop-loss order is you don't need to monitor your holdings daily.

Read more ---> https://www.investopedia.com/articles/stocks/09/use-stop-loss.asp#:~:text=A%20stop%2Dloss%20is%20designed,and%20trigger%20an%20unnecessary%20sale.

If you don't want to get bogged down in too many details, buy bitcoin and hold it for more than 5 years.

[wajik-tempe]

The problem is we don't know when the market is gonna be bearish and when it's just a bear trap.
Sometimes when we already placed a stoploss and wait for more dip the price bounce back and we lose a chance, so i think it depends on the type of the trader itself. If the traders are planned to hold for 5 years, i think it's okay if they hold it even it's in bearish time. But for daytrader it's really important to place a stop loss.