Know When to Stop. Lesson for Everyone, Particularly Investors

[TimeTeller]

Knowing when to stop is also like knowing yourself more. Greedy people often do not achieve success but failure and that is a lesson learned that we must know how to deal with our emotions and much more about controlling our greed. Well, for newbies it seems not easy to know about it but for experienced traders or investors, we probably know when to stop.

 - stop if we already exceed our limits
 - stop if we feel uncomfortable and out of the plan
 - stop if we never understand that market situation

It's not about being a newbie or an experienced trader, it's all about the knowledge that you have and the basic understanding of how a financial market works. I might be a newbie in the cryptocurrency market but maybe I have a lot of experience in another financial market that has a lot of similarities with it and if that is the case, I would understand and know when I need to act and when I should simply keep my hands out of the dirt because it's only going to make them dirty.

A lot of people make the mistake of not acquiring enough knowledge about the market and how things work around, and the disadvantage for them is that they don't have any experience with any other financial market and this is the first time they decided to earn some money through trading because they've been seeing it all around.

Just like any trading market, you do need to equip yourself with enough knowledge on every project you want to explore with.
That is true, you may be new to crypto market but you've been doing the forex trading or other financial markets.
It means, you already have the basic knowledge what to look out or consider and you won't jump on a simple hype or anything.

[BitcoinTurk]

Definitely, it is necessary to know where to stop loss when trading because there is a risk of losing the entire balance used especially when leveraged transactions are made. In addition, manually monitoring the price to stop losses in leveraged transactions may lead to a high risk of loss due to leverage or to loss of the balance used in the entire position due to a sudden price movement.

In addition, knowing where to stop the loss will help to save the balance used for the transaction with minimum loss and to use it in the same transaction parity in case of a potential different price movement. For this reason, it is absolutely logical to know where to stop the loss while opening a trade and to act accordingly.

[Learn Bitcoin]

It's essential to understand when to stop and when to take profit while you are in a good position. Exiting the market at the right time is most important. I had the opportunity to exit the market with a $2K profit when BTC touched its ATH. I had several alt coins at that moment and some BTC as well. But I did not understand the market will turn around and it will never go up for a long time. I ended up losing almost $4K at some point. I needed some urgent cash and I ended up selling them at a loss.

When it comes to trading profit, over-trading won't make you rich in one night. Set a target for every session. If you reach your trading target for today, you should take a break and end the session to take your profit. Most people make this mistake as well. They continue trading.

[ancafe]

There's a good wisdom from how you describe things here, trading is more difficult as a single mistake can lead you to lose all your investment, unlike with investing as long as you are holding your asset the chance that it may pump back will allow you to recover and make money with your investment, though similar in both side, you need to have that knowledge to anticipate what value you are aiming to collect your profits.

That knowledge can lead you to make money from this venue of investment, and you need to keep learning from each trading or investing that you are involved with.

The level of difficulty in trading and investing is much different because it requires experience and knowledge for anyone who wants to get involved in it. The slightest mistake can make the trades we make result in big losses because we don't have a plan and strategy when market conditions experience a sharp decline in the trades we carry out. Investing is much easier and as long as we hold fundamental assets like bitcoin there will always be a way to recover to the price we want.

Trading requires experience in addition to basic knowledge related to trading itself. We will gain this experience as long as we are involved in the practice. A combination of knowledge and experience is very important so that someone can look for patterns for their trading, If this difficulty can be overcome then it can be said that we understand the method

[Sebas.tian]

Just because the market is moving rapidly doesn't mean you have to follow the crowd blindly. The same holds true for the Dollar Cost Averaging (DCA) method.

Carry out your personal research before trading, it will help you to avoid so many things in the market, because many new traders has lost a lot of coins because they failed to know the type of coins they are holding, and what it will bring out in the future. Don't be in a hurry to trade your coins no matter what is happening in the crypto market than to wait and watch the green light and red light very well to know if the bullish market will last long or is not yet bullish market before making up your mind to trade. The most important thing in the crypto trade, is to know your target because your target can be $40,000 before you can trade in the market but other traders target can be $60,000 or above before they can trade in the market.

[justdimin]

I think we all know the problem you describe here. The less concentrated or the more pressure behind the trade ("this must work now!!") the worse the result usually is.

As a small tip: A bot is never unfocused. It has helped me a lot to have my strategies executed by a bot, the only lack of concentration can happen here when setting up the bot, but this error is usually noticed very quickly - and is also very easily corrected.
I used an open source bot that just ran on my Raspberry Pi, but now there are plenty of free online hosted bots that work even better.

Yeah, as it is a common one. You mentioned " less concentrated and more pressure " but if one of them is present, the other will also be experienced. So, we need to combat at least one them to be able to improve our trading performances. You drop a nice tip there. Not only that bot can focus on their craft, they also don't have an emotion. So, whatever movement they see in the market (up and down) they can always carry on.

It only boils down to the strategy that we inject on them and like you said if how focused we are on setting it up. It's important because one mistake can mess up with all of the capital that we allocate on them. I usually prefer my own configuration but if we think someone else is better then why not use them instead?

[LogitechMouse]

So, what you're getting at is, don't let your emotions run the show. We've got a strategy or game plan to stick to, and we can't allow our feelings to take the wheel. That's why we have these popular terms like FOMO and FUD - they're all about investors and traders making decisions based on their emotions.

Emotions become the worst enemy in trading even investing as well, the reason why if we can’t control or stop it, it’s much better not to trade or invest. Otherwise, we will certainly lost our focus why we need to trade or invest in the first place, and won’t stick to the original plan or purpose since emotions run the show. If we know that’s already happening, take a break and just come back again when you know already how to control or lessen the involvement of emotions.

Emotions can ruin everything.

Imagine you are already up x3, but you are thinking that there might be a chance that it might go even higher, and in the end, it went the opposite way. Another one is, imagine if you want to invest into a particular project that's considered established already, but because you are afraid to lose money, you ended up losing that opportunity.

Learning how to be emotionless in investing, and in trading is very hard especially in trading. It took me a long time to be emotionless in investing, and in trading, I ended up stopping it because my emotions is always getting me. I guess it's good that I successfully learned how to be emotionless in investing up to the point that I'm not making impulsive decisions that might make me lose my capital.

Being emotionless is achievable, but it will take some time to learn. You need to be disciplined enough first to learn it.

[irhact]

Knowing when to stop is also like knowing yourself more. Greedy people often do not achieve success but failure and that is a lesson learned that we must know how to deal with our emotions and much more about controlling our greed. Well, for newbies it seems not easy to know about it but for experienced traders or investors, we probably know when to stop.

Greed is the reason why many individual lose when they try to trade, greed is not good for you to have as a trader. Greed will make you to exceed your trading limit and it can make you to lose when you would have made profit if you followed your trading strategy and sold when you hit the traget you had before greed made you to increase it. Whales know that there's greed in the market so they manipulate the market to make it look like the price is rising and you'll fall for this trick since you have greed in you. Be satisfied with the profits you have made and trade again after analyzing the market.

Knowing when to stop can be done automatically by setting your take profits on the exchange that you're using to trade, don't say you'll end the trade manually if you noticed you're having greediness problems. When the take profits is set, you'll be forced to sell your coins and end your trade and not be tempted to start adding other higher targets. Cryptocurency market is the most volatile market that I have traded in and if you're not careful your profits can turn to losses in seconds.

[Questat]

We can assess the results of our trade and think if we still need to continue or not. Everything we do is in our hands and our decisions. Lack of Knowledge is usually the reason why people/investors suffer losses. That is why before we enter into crypto investment, we must take a prior to learning before investing, or else, we are also one of those people who lose their money in just the blink of an eye.

That is how important to know what we have been doing and of course, we also know our capabilities because we can't compare ourselves to others. If they succeed in investing in Bitcoin, might be possible that we can't.

[synchronym]

The cryptocurrency market is known for its swift movements, which can often lead to impulsive reactions. When you wake up to a sea of red in the market, the instinct might be to either rush in to buy or hastily sell. However, the best response often involves taking a step back. It's essential to learn to recognize warning signs that indicate you should pause and reflect before making decisions.

Investing in Bitcoin or cryptocurrency in general is more of a marathon than a sprint. You'll likely be part of this market for many years, and during that time, you'll witness significant fluctuations.

If you ever catch yourself hurrying to make a trade – Pause.

If you become irritable when someone interrupts you as you analyze your investments – Pause.

If you're consumed by doubts about whether buying or selling is the right move – Pause.

If emotions start to dominate your decision-making – Pause.


Your decisions should be made thoughtfully. You should have clear reasons for buying or selling a specific cryptocurrency and how it aligns with your overall strategy. Make choices based on your strategy's principles.

Whenever you feel rushed and find yourself making decisions without considering your strategy, step back and take a break. Return when you can approach your decisions in a deliberate manner.

Perhaps all you need is a short coffee break, or maybe you should step away for a day or even a week. Your portfolio will still be there when you return. Remember, you're not a day trader. You don't have to react to every minor market swing. Not a single day in the market should make you feel like you're racing against time.

One of the advantages of the Dual Investment Strategy, which I've discussed before, is that it doesn't demand constant attention. You can set up your portfolio, step back, and live your life, checking on your investments when it's convenient for you. Let your life schedule when you review your portfolio, rather than letting the market dictate your life. There's nothing in this strategy that necessitates an immediate reaction to market movements. Just because the market is moving rapidly doesn't mean you have to follow the crowd blindly. The same holds true for the Dollar Cost Averaging (DCA) method.

If you decide to trade you must first understand it yourself without listening to anyone and then you have to trade. While trading, you have to keep a cool head and take time.  You have to keep up with the market and keep an eye on when things are gaining or losing. You have to have an idea of what you will be good at trading and what you will be bad at, then you will be a successful trader.

[AicecreaME]

When you wake up to a sea of red in the market, the instinct might be to either rush in to buy or hastily sell. However, the best response often involves taking a step back. It's essential to learn to recognize warning signs that indicate you should pause and reflect before making decisions.

Buying for investment or buying for trading is different. The first one will be more calm and the latter one will be more emotional.

If you are an investor and applying Dollar Cost Averaging, dips are great chances for you to accumulate bitcoin and surely good for DCA. This is not applied for altcoins because altcoins are shitcoins. They can be minted during a dead spiral like Terra $LUNA and must note, many altcoin tokens have a Mint function to do the same thing did by Do Kwon in May 2022.

Buying means entering a long trade and selling means entering short in trading, correct me if I'm wrong though.

DCA could be use either in trading in futures or in spot trading, so it's either me or you who misunderstood what OP meant with his terms. Anyways, I agree with OP with the pause whenever something's bad happen in your trade, or whenever your mind is clouded with a lot of things that could lead you to making bad decisions in your trade. Always remember to rest and clear your mind before continuing your trade to avoid confusion and bad trades.

[milewilda]

So, what you're getting at is, don't let your emotions run the show. We've got a strategy or game plan to stick to, and we can't allow our feelings to take the wheel. That's why we have these popular terms like FOMO and FUD - they're all about investors and traders making decisions based on their emotions.

Emotions become the worst enemy in trading even investing as well, the reason why if we can’t control or stop it, it’s much better not to trade or invest. Otherwise, we will certainly lost our focus why we need to trade or invest in the first place, and won’t stick to the original plan or purpose since emotions run the show. If we know that’s already happening, take a break and just come back again when you know already how to control or lessen the involvement of emotions.

Emotions can ruin everything.

Imagine you are already up x3, but you are thinking that there might be a chance that it might go even higher, and in the end, it went the opposite way. Another one is, imagine if you want to invest into a particular project that's considered established already, but because you are afraid to lose money, you ended up losing that opportunity.

Learning how to be emotionless in investing, and in trading is very hard especially in trading. It took me a long time to be emotionless in investing, and in trading, I ended up stopping it because my emotions is always getting me. I guess it's good that I successfully learned how to be emotionless in investing up to the point that I'm not making impulsive decisions that might make me lose my capital.

Being emotionless is achievable, but it will take some time to learn. You need to be disciplined enough first to learn it.

And this is something that you do really need to developed on which you would really be needing that kind of control on which you would really be that needing to enhance it up because dealing up with this market or whatever business will really be that making you that impulsive when it comes to emotion since no one really likes on losing money or with their investment on which as a human being then it would really be just that a common approach or reaciton to have. Learning up lesson would come along the way on which via with those mistakes that you do able to encounter on which it is inevitable.So therefore, it would really be just that so normal that you would really be needing to adjust and make learn with those things so that on next time encounter then you do already have the idea on what are the things that you should gonna do. There are really moments or times on which losses is really that on severe manner or something that do talks about huge damage or effect towards your capital on which it would really be causing up some breakdown if you arent really that emotionally and mentally prepared about those risks which it tends out to be normal but this is something that should be controlled or not really be that tollerated.

There are really indeed moments or times on which you would really be knowing on when to stop or having a break rather than on making yourself that trying to force up on dealing with trading
even if you do see that things becomes worst yet the market did really make out those too severe unpredictable movements on which you havent been anticipated that it could
really be able to happen on such extent but well there are indeed moments such as this.

[taufik123]

-snip-
There are really indeed moments or times on which you would really be knowing on when to stop or having a break rather than on making yourself that trying to force up on dealing with trading
even if you do see that things becomes worst yet the market did really make out those too severe unpredictable movements on which you havent been anticipated that it could
really be able to happen on such extent but well there are indeed moments such as this.

it's reaching the limit of what we can afford in dealing with trading.
I myself also sometimes need to take a break and reflect on what is going on, why the trade is not going well.
Psychology seems to be getting worse and worse with some of the losses that occur.

It is necessary to do a self-evaluation, evaluation in trading to find out what is wrong and to fix it.
It is necessary to do so that we ourselves know what is an obstacle.

Learning from mistakes is a good thing, but learning from other people's mistakes helps us to improve without feeling the mistakes.

[Traderbtcc]

When you wake up to a sea of red in the market, the instinct might be to either rush in to buy or hastily sell. However, the best response often involves taking a step back. It's essential to learn to recognize warning signs that indicate you should pause and reflect before making decisions.

Buying for investment or buying for trading is different. The first one will be more calm and the latter one will be more emotional.

If you are an investor and applying Dollar Cost Averaging, dips are great chances for you to accumulate bitcoin and surely good for DCA. This is not applied for altcoins because altcoins are shitcoins. They can be minted during a dead spiral like Terra $LUNA and must note, many altcoin tokens have a Mint function to do the same thing did by Do Kwon in May 2022.

Yeah, you're spot on! I think he was referring more to buying for investment, but some people mistake it for trading. Although it's technically trading (spot), it's quite different from futures trading.
Some investors act like traders and let their emotions guide their decisions. They invest a large amount, which can cause panic if things don't go as planned. That's where Dollar Cost Averaging (DCA) comes in handy. It helps reduce risk and keeps them calm while trading. Following the rules carefully makes trading much simpler. Emotional trading is never a good idea, my friend. Stay cool and collected!

[Silberman]

We can assess the results of our trade and think if we still need to continue or not. Everything we do is in our hands and our decisions. Lack of Knowledge is usually the reason why people/investors suffer losses. That is why before we enter into crypto investment, we must take a prior to learning before investing, or else, we are also one of those people who lose their money in just the blink of an eye.

That is how important to know what we have been doing and of course, we also know our capabilities because we can't compare ourselves to others. If they succeed in investing in Bitcoin, might be possible that we can't.

While people spend a great deal of time trying to learn how to trade, a very important lesson which will save them a lot of money and frustrations is to learn when not to trade, trading is a very taxing activity, both physically and mentally, so if a person is not in an optimal state then they should not trade, however many traders believe themselves to be above such simple rule and decide to trade anyway, and most of the time that is when their biggest mistakes will be made and from which it could take them quite a while to recover from.

[bettercrypto]

It's essential to understand when to stop and when to take profit while you are in a good position. Exiting the market at the right time is most important. I had the opportunity to exit the market with a $2K profit when BTC touched its ATH. I had several alt coins at that moment and some BTC as well. But I did not understand the market will turn around and it will never go up for a long time. I ended up losing almost $4K at some point. I needed some urgent cash and I ended up selling them at a loss.

When it comes to trading profit, over-trading won't make you rich in one night. Set a target for every session. If you reach your trading target for today, you should take a break and end the session to take your profit. Most people make this mistake as well. They continue trading.

That's why it's important that you have knowledge of trading, because if you don't know anything, you probably won't be able to do what is said to be a stop loss because you just depend on your opinion or thought in trading without any basis. You get what I mean?

However, if you are familiar with trading, you will know where to place a stop loss and where to enter a position, as well as how to read and use tool indicators to predict the price.

[goinmerry]

Actually, if newbies will read that, they will just be confused as they don't know and understand what they are reading.

To fully understand that lesson, investors, newbies or not should try the actual pressure, stress, and challenge of trading.

I know for sure that after they build experience in trading, they will know the thing about when to stop as soon as they move forward.

[TelolettOm]

One of the things that must be considered when investing in crypto or trading is to do it wisely. Be wise here in any case, in terms of making decisions, determining amounts, determining the most appropriate strategy at that time, including understanding when to start and when to stop.

Sometimes, we are too curious about the next results even though we have experienced failure or lost money several times in trading. And this is where we begin to unknowingly lose a lot of money. So financial management, especially funds used for trading, is very necessary. So that we understand when to stop, either after losing or after winning. Stopping or taking a break can have quite a good effect. At least give ourselves time to be calmer, deepen the lessons from our experience, and have more time to evaluate trading.

[Aanuoluwatofunmi]

When it comes to trading profit, over-trading won't make you rich in one night. Set a target for every session. If you reach your trading target for today, you should take a break and end the session to take your profit. Most people make this mistake as well. They continue trading.

It's not about knowing when to stop alone, we also have to know the exact and safe period which we should buy and hodl, being a bitcoiner and a trader, we just don't assume doing things anyhow without having targets or good intentions that can increase the performances of our investment, overtrading will only make us weak and vulnerable the more because we are doing the same thing repeatedly over time again.

[tbct_mt2]

It's not about knowing when to stop alone, we also have to know the exact and safe period which we should buy and hodl, being a bitcoiner and a trader, we just don't assume doing things anyhow without having targets or good intentions that can increase the performances of our investment, overtrading will only make us weak and vulnerable the more because we are doing the same thing repeatedly over time again.

Making a stop is a good step as many people are unable to stop before they lose all capital, everything. They only stop when it is too late because with a trader or investor, capital is their blood. Without blood, human die and without capital, a trader or investor has nothing to do.

Though it is a good start, it is not enough with next steps. What you will do after a stop is important. Will you stop to analyze your mistakes, learn something, and build a better strategy before returning to the market. If so, you are doing great to improve yourself.

If not, you will return to the market without any change and you will get same mistakes, same losses.