Quote from: automail on March 01, 2018, 01:02:10 AM

Quote from: Canis Majoris on February 20, 2018, 09:50:28 AM

An active day trader myself (sort of), I often think about common mistakes people make in trading. And it seems that I have traced back most if not all such mistakes to their root cause. In a nutshell, it all comes down to being unable to back out if something goes wrong. For example, you buy a few bitcoins at a December high and expect the price to continue rising, which is kind of obvious. Instead, the price starts crashing down and you find yourself in a situation that you didn't envisage or consider beforehand. So your best option would be to bring things back where they were as fast as possible even if it means some loss.

It is not so much about placing dumb stop-loss orders or other trading techniques aimed at minimizing losses as about your mental disposition or general attitude to immediately get out of what can be loosely called a decision limbo when you basically don't know what to do. In other words, search for the exit where the entrance is and do that fast.

I agree. The rules of the game is simple, if the price is at its peak, don't even think of buying it. In my case, I always buy a coin when its at least 50% below of its price below (it depends, not usually the case). I found 3 coins who has then I sold it after 3 months. I gained some and I never regret my decision because I hold it long enough and I needed the money. The price went down on the 4th month but it recovered plus 10% on the 5th month. Always trust your instinct but be close to reality. You know what it is.

Actually, I like your trading strategy as long as you keep decent coins in your investment portfolio. As history has shown, expecting a ~50% major price retreat is not unfounded since such fallbacks are quite common these days and they can be used as a staple of a long-term trading strategy. As long as the cryptoverse expands, any correction will sooner or later be followed by a major bull rally, so it is kind of sure bet. But be warned, crypto won't expand infinitely.