Hello traders. In this video, I want to talk about losses in cryptocurrencies. Indeed, in any kind of trade, most people lose, even professionals. It’s important to know what to do when the price goes wrong and you start losing money. There are many techniques and ways to avoid or reduce losses. Getting started!
How to fix a loss in crypto?
The first way is to find the best entry points in advance. You need to plan your deals, study graphical and technical analysis, and follow the news. You must in advance minimize the possibility of your error. If you do not know how best to trade, you should use the 3commas platform, which offers special signals for opening trades. 3commas has a custom, TradingView, free, and paid signals.
The second way is to use Stop Loss to reduce your losses. Unfortunately, Stop Loss is often triggered in vain and the price then reverses and you are no longer in the trade. Therefore, you need to learn how to set Stop Loss. I usually put a Stop Loss under or above the support and resistance lines, or I put a fixed Stop Loss: 3-5%. Another option is Stop Loss in mind when you yourself close the trade when you reach a certain percentage of loss.
How to get out of a drawdown/investment in crypto?
The third method is averaging, that is, to buy additional coins if they fall in order to shift your Take Profit lower. To do this, it is better to use the 3commas service with a convenient “Add Funds” function in SmartTrade or automatic Safety Orders in bots. This will reduce risk, eliminate the need to use Stop Loss, and reduce the likelihood of losing money. But you must have a large margin of the deposit to be enough for average.
The fourth way is to open a Short Trade on Binance Futures or a Short Trade on Margin on the Binance Spot Market to recoup losses on a Long Trade. Another option is to simply Buyback your coins cheaper on a dip using the 3commas platform using Smart Cover or Smart Buy functions in SmartTrade. It is also recommended to use Short Bots in the spot market to automatically sell and buy coins at a lower price.
What if the deal/bot is in the red?
The fifth way is to use the 3commas Grid Bot. In this case, you will need to use your dropped in price tokens for trading, for example, to USDT. The grid bot will sell and buy your cryptocurrency within the established grid. When the price leaves the grid, you can reconfigure it and continue using the Grid Bot, or configure the Smart Sell function in SmartTrade and sell your existing coins at a profit.
The sixth way is to accept and wait, to become an investor. A dangerous method does not always work. But if you no longer have funds for Averaging, you did not set Stop Loss, and you don’t want to close in a big minus, then there is no other option. You just have to wait for the deal to come out on top and close automatically. If the coin is new, then the likelihood of its early pump increases. If the token is old and has been traded for a long time, this probability decreases.
The video about fixing losses in cryptocurrencies is coming to the end. I have told you 6 ways to solve the problem of trading losses. I myself use 3commas Averaging in the spot market (SmartTrade and bots), and in the futures market, I use a fixed Stop Loss is always. If all my Safety Orders (Averaging) finished on the spot market, I wait in the investment for some time to gain profit. That’s all until new videos on botcryptotrade.com