Trading BTC can beat HODL

[deaddog]

Bitcoin is more volatile than traditional markets, therefore having a stop loss can be expensive and falsely set off by manipulators, so it's better to have a phone alert system. Exchanges also know where everyone's stop is at, and I also believe they are the ones responsible for falsely executing the stops. When I trade all I use is phone alert, you will spend more money from having false stops than 1 big loss. The only time I use a stop is when I'm getting ready to profit

To state the obvious we have different strategies for taking money out of the market.

The more volatile an asset the tighter I place my stops. If/when I'm wrong I want to keep my losses to a minimum. When it's volitile my wins will be much greater than my losses. 80/20 rule; I make 80% of my money on 20% of my trades.

I have found that the trades that work take off from the get-go and rarely look back. If I enter a trade and it moves against me I bail. Doesn't cost me much and I have capital available for the next set-up. There is no law that says I can't buy back in, even at a higher price.

Every huge loss starts with a small loss that could have been taken.

 

[Tokenz]

To state the obvious we have different strategies for taking money out of the market.

The more volatile an asset the tighter I place my stops. If/when I'm wrong I want to keep my losses to a minimum. When it's volitile my wins will be much greater than my losses. 80/20 rule; I make 80% of my money on 20% of my trades.

I have found that the trades that work take off from the get-go and rarely look back. If I enter a trade and it moves against me I bail. Doesn't cost me much and I have capital available for the next set-up. There is no law that says I can't buy back in, even at a higher price.

Every huge loss starts with a small loss that could have been taken.

That's actually a good strategy. But you will be making smaller profits. I'm assuming you're trading minute charts? Maybe an hourly chart? I'm prefer the daily chart or even weekly. You absolutely cannot use a tight stop without getting stopped out multiple times. A wider stop is more ideal. And the losses can be bigger but the profits higher, and all the info in the higher time frames hold more weight.

One day I was feeling very ballsy and tried trading every little dip and pump on the 5 minute. And actually did pretty well (1k profit) I wouldn't mind trying it again with what I know now.

 

[deaddog]

That's actually a good strategy. But you will be making smaller profits. I'm assuming you're trading minute charts? Maybe an hourly chart? I'm prefer the daily chart or even weekly. You absolutely cannot use a tight stop without getting stopped out multiple times. A wider stop is more ideal. And the losses can be bigger but the profits higher, and all the info in the higher time frames hold more weight.

One day I was feeling very ballsy and tried trading every little dip and pump on the 5 minute. And actually did pretty well (1k profit) I wouldn't mind trying it again with what I know now.

No I trade the daily/weekly charts. I control risk with position size and scale into trades that work. Start with a small position in case you need to get out. Tight stop on initial entry then add to position so that you keep the risk small. After the second entry the trade should be risk free. (If you get stopped out you make a small profit).

If you find you are getting stopped out a lot and the position takes off right after you get stopped out, move your entry to where you would normally place your stop with a tighter stop.