Quote from: drlukacs on Today at 02:00:15 AM

Quote from: whatever61 on December 03, 2020, 08:49:24 AM

Hey guys,

I am new in the crypto trading and i was analyzing the biggest currencies and I had the following strategy:

Buy 5 coins for 1000EUR each => wait till each of them grows 10% => sell.
If it went down, I still wait until it will go back up +10%. It's ok if it will take weeks.

From my analysis (correct me if I am wrong) it almost always does after a while.
If one of them didn't after a long time, the other 4 should compensate for the loss.

This is a strategy that has never been overestimated. It's too rudimentary and has no security for your portfolio.
Try for example applying your strategy to the Sushiswap token, otherwise luckily you buy at $ 7 and now its price has dropped to $ 2.28. So your assets have been divided 3 times and your capital is still buried for 3 months up to the present time.
Obviously this is a very bad strategy because without a stop loss the market can be very volatile and we will never be sure where its price will be tomorrow. So before a good trade, risk management is very important, spend more time learning it bro Wink

Using stop loss will be better to anticipate the drops of the price that can happen at any time. But that will need more lessons to learn when we should use the stop loss, so we don't get too big a trading loss. We can't predict what will happen to the coins, whether it will bounce up or go down after we bought. But if the price is down and the down is more than the price you bought, perhaps, you need to prepare to use that stop loss to anticipate another drop.

Yes, I agree that risk management will be necessary at that time to anticipate the drops. Besides that, you need to know how much money you can use to buy the coins to see what you need to do if the price is down.