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RE: Stormgain Crypto Trading Challenge Days 7-8: Steady Profits in Uncertain Markets

in #stormgain3 months ago

I would suggest using stop-loss always... It's important to take profits, but it's important to cut losses too!

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Hi @ph1102 - thanks for checking my progress and offering some feedback. I would have thought the same way before this experience. However, several of my losses came from triggered stop-losses and the asset later recovered.

I think the underlying bull market is a key factor to consider. I began to research traders opinions about stop losses, and some think it is a mistake to set a narrow stop-loss, others do not use them at all if they believe in the fundamental value of the asset. I'm sure there is a role for stop-losses, but in the present circumstances I prefer not to use them.

The key for me is not to bid too much and especially to keep the leverage low. It would take a massive downturn for a $100 trade with 10x leverage to chew through my $50,000 of play money - but I acknowledge it is possible, especially when I leave trades open while sleeping!

However, several of my losses came from triggered stop-losses and the asset later recovered.

I do understand this, and it is frustrating... but your final paragraph says it all... big leverage can eat all your balance if it goes in the wrong direction...

Heads up, and play it safe... Only what you can afford to lose! ;)

Cheers!