To all the traders out there, how do you select where to put your stop loss? I've gotten good with buying low and selling higher but I've never had a losing trade in crypto (been doing this less than 2 months) so I've never had a stop loss hit. How do you decide where to place it?
>inb4 just hold because it'll go back up eventually
that's dumb; you should ALWAYS have a stop in place. Otherwise one bad trade where you're left holding the bag can destroy days and weeks of profit
>user sets stop loss
>It triggers
>sell ETH at .10 a pop
>it immediately rebounds back to $300
>hear screeching frog noises in the distance
>you should ALWAYS have a stop in place
lol tell that to the people who got burned in that ETH flash crash
whales will mess your shit up for fun
stop loss with that volatility? good luck.
stop-limit*
Predictions for the next week?
This.
OP what you're forgetting is that whales ALWAYS go
>Ok, hmmm where is everybody's stop losses? I know, it's probably right below the support here. Ok...aaaand triggered.
Now you've got a crash down 10% below people's stop losses, the whale then scoops it all back up, and it rises again.
>Now I'll just pump this coin back up, people will see it and start buying the rally, and it'll go higher and I'm all set
That is what the whales are doing. They are PURPOSELY guessing where your stop losses are and triggering them. ON PURPOSE.
TRUST ME on this. The people with big money KNOW you are setting stop losses and they are triggering them to buy cheap ON PURPOSE.
well then an alert set at a stop loss price so you can then limit sell yourself.
I meant to protect yourself from holding a very heavy bag thats in a permanent downtrend
what about the times that a bounce back doesnt happen? what if I want to avoid a DGB type scenario where I bought a "dip" from the ATH but it just forever heads lower?
If you cut losses quickly then 1 good trade can eliminate 2 or 3 bad ones that you got stopped out at. But if you never sell then 1 bad trade can eliminate many many good ones
Stoplimit brah, and depends on the timeframe you work
You're right, I know. Thats probably why I havent had a losing trade yet because I keep buying on support and selling at resistance. But what if it doesnt come back and downtrends forever?
Again, I'm telling you, I used to think the stop losses are like free insurance against a crash/permanent downtrend.
They aren't. This game is 100% psychological manipulation. The people who bought in years ago drive the entire market and purposely fuck with you to make you think it's going down so they can buy it cheap and pump it up just when everyone has given up hope for it.
Stop losses are NOT a good idea in this game. This isn't the stop market. It's unregulated psychological manipulation and that's all it is.
If you haven't had a losing trade yet, I think you just started trading crypto this year. You have seen nothing.
it never just goes to hell, even dgb didn't
I bought what I thought was the dip at 1700 since it looked like a double bottom, it went to hell at 1400~ and bounced back up to my buy in
that's when you sell that shit and peace the fuck out
if it goes below your projected, wait for the bounce back up to around your buy and then leave it
>hear screeching frog noises in the distance
Kek
yep, I said in OP that Ive only been doing this for 2 months. So I want to protect against a loss because I know when the bull run stops, there will be losses.
hmm thats a good idea, a bounce back. Support usually becomes resistance so theres a good chance I can exit out with no money lost. Thanks user.
>well then an alert set at a stop loss price so you can then limit sell yourself.
you asked about stop loss. not about alerts. stop changing the goalpost, you degenerate sjw faggot. go and cut off your dick already.
>I want to protect against a loss
You can't. Stop losses/limits will not protect you unless you are well into profit AND comfortable not making any more, because 90% of the time it's whale triggering stop losses on purpose to buy up more.
If you really want to know how to make profit, trade against the big walls. They are almost always fake, obviously so, and they appear like twice a minute for ETH, at least Gdax with its dynamic depth chart.
Big and steep sell wall = buy. It's a whale buying up cheap and building up pressure so it will explode upwards as soon as he takes down his wall.
Huge and steep buy wall = sell. It's a whale selling off above his buy wall price because he expects price to go lower.
A very gradual/smooth but still high wall means nothing. Those are real walls. I'm talking about the cliffs. Always buy/sell against them.
There. I just told you how to successfully day-trade ETH.
In case you didn't understand, read the filename of this image. And remember, a bunch of anons were screaming "SELL" at this time when it was so obviously a signal to buy.
lol
so then what would you suggest when I buy a coin and have profit, and then thhat coin slowly starts losing value? Do I buy more on another dip? Or just hold forever?
I bought DBG RDD and XVG well before their ATHs, but I never sold and now have significantly less profit. Still well in the green though.
I kind of know how to daytrade ETH, Ive been buying dips and selling the rips. Just last night I bought ETH around 286 and sold at 304 this morning.
Then I rebought this morning at 286 again thinking I could sell at around 300 but Im in the red now and not sure what to do. Dont really want to hold it because I know ETH is starting another big dip.
But thanks for the tips, I understand perfectly
always buy high and sell low
Take a look at the charts for BAY, a coin I don't even own any of, around March 19-25th. Look how it rallied and then went back to where it started. Everyone here said it was absolutely dead.
>What do you suggest I do when faced with short term losses?
Buy when coins have big, promising updates in the near future, buy more when it dips, sell the news ALWAYS, and look at the fucking chart for BAY like I said for reason to always hold if you want more.
>But if you'd bought POSW, you'd have lost everything
Buy on fundamentals and be smart about it by looking for repetitive stages of accumulation and distribution for each coin. You should know when it's time to hold/sell.
I'm glad you at least understood how to day-trade some ETH.
I see.
Well thanks for all your help user. I dont think i have any more questions
This doesn't just happen in crypto. It happens in forex and commodities every day. In forex/commodities the market makers are trying to make the market so they need to facilitate liquidity required by the huge institutional traders so they take quotes to where there are willing buyers and sellers an where are willing buyers and sellers? it's where the stop orders are resting those are market orders of willing buyers/sellers.
So if they need to find a bunch of buyers they take quotes to where the buy stops are which people always place above previous highs as either a buy to cover a short or buy on a breakout, or if they need to find a lot of sellers the sell stops are going to be under the previous lows as either sell out of a long or sell to go short on a breakout below the lows. And by doing that they have facilitated market liquidity by pairing those willing buyers' and sellers' orders. and of course the market makers and exchange makes their cut on the spreads and commissions.
Sorry noob here trying to wrap my head around this; so the walls are basically bait put up by whales?
Can you give an example of what would happen if you buy when you see a sell wall?
Upward price momentum will peak and the trend will reverse, lowering the price. Weak hands sell their positions, and the downward momentum accelerates until the whale(s) hit their price target, and then they buy in, generally halting the downstairs momentum and starting a new bull run.
Because the markets are still extremely small, a few whales have incredibly disproportionate market power.
I determine an acceptable profit, then after evaluating the market, set a stop at about 92.5% of my acceptable profit.
Set your stop losses arbitrarily high or low depending on your position so that you go to the top of the bid/ask book. Your order will immediately be executed at the prevailing market price, plus or minus whatever the spread is.
I-I'm pretty sure I get it now, thanks user.