Quote from: ladner on August 13, 2018, 09:03:04 PM

Quote from: deonyx on August 13, 2018, 07:58:09 PM

Trading is an art and those that mastered the art played better even when it's raining. Crypto trading is not different either, but when the market is down we tend to forget all the formula we know and quickly get absorbed into the situation, the same happens when the market is going up, we clap and forget to take actions and eventually see the opposite happening.

However, we can do better and survive even when the market is bad.

To take profits or cut out loses is very important strategy in crypto trading, and I will describe few ways you can achieve this without feeling the heat of the market.

Depending on your style of trading whether long term or short term but when situations present itself I would advice that you combine the two methods and get the best out of the market.

How to handle cutting out losses
Using Enigma (ENG) as a case study. At the time of writing this post, Enigma (ENG) is at 10600 sat on Bittrex and 10634 on Binance exchange, let's assume you have invested $1000 and bought it 3 days ago when it was at good buy around 12546 sat giving you a total coin of 1245 ENG. It has only went up only a few percent and its possible that you didn't sell before it reversed, as at now it has dropped 15.51% lower, but assuming you are close to your trade when it was dropping, you could place your stop loss at 5% below your buy order and cut out loss at around 11900 sat or abruptly sell out at 11400 sat when the EMA crossed the SMA curves and started with sharp move downward.

If you did any of these I described above, the next question is what should you do with the money you sold since you are still at loss if you just walk away like that. Then the best thing to do is to reinvest back into the same coin by taking a watch at the market and buying back at much lower position when the EMA curve crosses the SMA again, with this buying around 10600 sat or below can give you around 1340 ENG which is higher than 1245 ENG you initially had, and the good thing is you are still back in the market. You should be sure to sell when you are at profit around 10% upward is better than none since 100% is very hard to come by this days unless you want to wait a longer time which is why I said you should learn to combine short term and long term together for optimal profit.

Alternatively, you can have patience and wait for full recovery but whichever one it is, avoid selling your coin at the bottom or middle of red candle which is a possible place to even place a buy order. Always look at your indicators it can be helpful.

For Taking Profit when the market is up you can just determine how many percentage profit you want and set your sell order, still watch the market and assuming that first target is not realizable before downward move, you can sell at comfortable profit and buy again at lower position.

I hope this helps anyone because the market is really not very favorable as it used to be.

Please note it's better to wait for market full recovery than following this method unless you are willing to give it what it takes and most importantly do not use this method under pressure or with your emotions as it can be very destructive if it is not handled with care.

Happy trading guys Grin

To be able to survive in the bear market, in my experience it can be seen that in order to successfully trade and reduce risk and loss, before any transaction you need to have a clear plan, You may find that bitcoin prices are constantly decreasing and this has made altcoin a very profound reduction. So let's just trade the bitcoin at this point.

Very Well said, having a good plan is very important and should be the starting point but it does not override the occurrence of the beer market which is why I described the nature of the downtrend and a possible way to maneuver and still make profit within it, that's if you don't feel that waiting for full recovery would be good for you.