Why take crypto profits when you can just set a stop order? Announcing the arrival of Valued Associate #679: Cesar Manara Planned maintenance scheduled April 23, 2019 at 00:00UTC (8:00pm US/Eastern) Frequently Answered Questions (by topic) Can we remove “Strategies for earning more money” from the on-topic list?
If Windows 7 doesn't support WSL, then what does Linux subsystem option mean?
How do I use the new nonlinear finite element in Mathematica 12 for this equation?
Why weren't discrete x86 CPUs ever used in game hardware?
Selecting user stories during sprint planning
What does it mean that physics no longer uses mechanical models to describe phenomena?
A term for a woman complaining about things/begging in a cute/childish way
How to write the following sign?
As a beginner, should I get a Squier Strat with a SSS config or a HSS?
Why wasn't DOSKEY integrated with COMMAND.COM?
Should I use a zero-interest credit card for a large one-time purchase?
How fail-safe is nr as stop bytes?
Disembodied hand growing fangs
Do I really need to have a message in a novel to appeal to readers?
What's the meaning of "fortified infraction restraint"?
How much damage would a cupful of neutron star matter do to the Earth?
Is it fair for a professor to grade us on the possession of past papers?
Drawing without replacement: why is the order of draw irrelevant?
What is the font for "b" letter?
Project Euler #1 in C++
How to install press fit bottom bracket into new frame
Why aren't air breathing engines used as small first stages?
An adverb for when you're not exaggerating
What do you call the main part of a joke?
How come Sam didn't become Lord of Horn Hill?
Why take crypto profits when you can just set a stop order?
Announcing the arrival of Valued Associate #679: Cesar Manara
Planned maintenance scheduled April 23, 2019 at 00:00UTC (8:00pm US/Eastern)
Frequently Answered Questions (by topic)
Can we remove “Strategies for earning more money” from the on-topic list?
.everyoneloves__top-leaderboard:empty,.everyoneloves__mid-leaderboard:empty,.everyoneloves__bot-mid-leaderboard:empty margin-bottom:0;
In such a volatile market as cryptocurrency, I have heard many people stress the importance of taking profits. For example, when a coin doubles in value, they sell 50% of their holding. This ensures profitability (if a coin goes up) but results in the investor missing the peak. I was wondering, could stop orders be better?
For example, if each time a coin goes up 10%, an investor sets a stop order at 90-95% of the present value. That way, there is no sale if it keeps going up, and if it plummets, it ensures that you sell it close to the peak (90-95% of it). I never read about something like this online. What are some flaws with this strategy / thinking?
cryptocurrency profitability
asked 5 hours ago
Nick SolonkoNick Solonko
111
New contributor
Nick Solonko is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
add a comment |
In such a volatile market as cryptocurrency, I have heard many people stress the importance of taking profits. For example, when a coin doubles in value, they sell 50% of their holding. This ensures profitability (if a coin goes up) but results in the investor missing the peak. I was wondering, could stop orders be better?
For example, if each time a coin goes up 10%, an investor sets a stop order at 90-95% of the present value. That way, there is no sale if it keeps going up, and if it plummets, it ensures that you sell it close to the peak (90-95% of it). I never read about something like this online. What are some flaws with this strategy / thinking?
cryptocurrency profitability
asked 5 hours ago
Nick SolonkoNick Solonko
111
New contributor
Nick Solonko is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
1
Use a trailing stop order though there's no guarantee that you'll get a fill at that price if it's a very volatile issue.
– Bob Baerker
5 hours ago
1
Why ever take any profit?
– quid
4 hours ago
add a comment |
In such a volatile market as cryptocurrency, I have heard many people stress the importance of taking profits. For example, when a coin doubles in value, they sell 50% of their holding. This ensures profitability (if a coin goes up) but results in the investor missing the peak. I was wondering, could stop orders be better?
For example, if each time a coin goes up 10%, an investor sets a stop order at 90-95% of the present value. That way, there is no sale if it keeps going up, and if it plummets, it ensures that you sell it close to the peak (90-95% of it). I never read about something like this online. What are some flaws with this strategy / thinking?
cryptocurrency profitability
asked 5 hours ago
Nick SolonkoNick Solonko
111
New contributor
Nick Solonko is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
In such a volatile market as cryptocurrency, I have heard many people stress the importance of taking profits. For example, when a coin doubles in value, they sell 50% of their holding. This ensures profitability (if a coin goes up) but results in the investor missing the peak. I was wondering, could stop orders be better?
For example, if each time a coin goes up 10%, an investor sets a stop order at 90-95% of the present value. That way, there is no sale if it keeps going up, and if it plummets, it ensures that you sell it close to the peak (90-95% of it). I never read about something like this online. What are some flaws with this strategy / thinking?
cryptocurrency profitability
cryptocurrency profitability
asked 5 hours ago
Nick SolonkoNick Solonko
111
New contributor
Nick Solonko is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 5 hours ago
Nick SolonkoNick Solonko
111
New contributor
Nick Solonko is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 5 hours ago
Nick SolonkoNick Solonko
111
New contributor
Nick Solonko is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 5 hours ago
Nick SolonkoNick Solonko
111
asked 5 hours ago
Nick SolonkoNick Solonko
111
111
New contributor
Nick Solonko is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
New contributor
Nick Solonko is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
Nick Solonko is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
1
Use a trailing stop order though there's no guarantee that you'll get a fill at that price if it's a very volatile issue.
– Bob Baerker
5 hours ago
1
Why ever take any profit?
– quid
4 hours ago
add a comment |
1
Use a trailing stop order though there's no guarantee that you'll get a fill at that price if it's a very volatile issue.
– Bob Baerker
5 hours ago
1
Why ever take any profit?
– quid
4 hours ago
1
1
Use a trailing stop order though there's no guarantee that you'll get a fill at that price if it's a very volatile issue.
– Bob Baerker
5 hours ago
Use a trailing stop order though there's no guarantee that you'll get a fill at that price if it's a very volatile issue.
– Bob Baerker
5 hours ago
1
1
Why ever take any profit?
– quid
4 hours ago
Why ever take any profit?
– quid
4 hours ago
add a comment |
1 Answer
1
active
oldest
votes
The big issue is that there has to be a buyer. If BTC (or whatever you trade in) drops 20% very suddenly, your order might not be filled. There has to be someone willing to buy at that price, so a sudden decrease can leave orders unfilled. Your stop-orders can and many times will work to protect your gains, but they are not guarantees.
answered 4 hours ago
Hart COHart CO
36k686103
add a comment |
Your Answer
StackExchange.ready(function()
var channelOptions =
tags: "".split(" "),
id: "93"
;
initTagRenderer("".split(" "), "".split(" "), channelOptions);
StackExchange.using("externalEditor", function()
// Have to fire editor after snippets, if snippets enabled
if (StackExchange.settings.snippets.snippetsEnabled)
StackExchange.using("snippets", function()
createEditor();
);
else
createEditor();
);
function createEditor()
StackExchange.prepareEditor(
heartbeatType: 'answer',
autoActivateHeartbeat: false,
convertImagesToLinks: true,
noModals: true,
showLowRepImageUploadWarning: true,
reputationToPostImages: 10,
bindNavPrevention: true,
postfix: "",
imageUploader:
brandingHtml: "Powered by u003ca class="icon-imgur-white" href="https://imgur.com/"u003eu003c/au003e",
contentPolicyHtml: "User contributions licensed under u003ca href="https://creativecommons.org/licenses/by-sa/3.0/"u003ecc by-sa 3.0 with attribution requiredu003c/au003e u003ca href="https://stackoverflow.com/legal/content-policy"u003e(content policy)u003c/au003e",
allowUrls: true
,
noCode: true, onDemand: true,
discardSelector: ".discard-answer"
,immediatelyShowMarkdownHelp:true
);
);
Nick Solonko is a new contributor. Be nice, and check out our Code of Conduct.
Sign up or log in
StackExchange.ready(function ()
StackExchange.helpers.onClickDraftSave('#login-link');
);
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
StackExchange.ready(
function ()
StackExchange.openid.initPostLogin('.new-post-login', 'https%3a%2f%2fmoney.stackexchange.com%2fquestions%2f108002%2fwhy-take-crypto-profits-when-you-can-just-set-a-stop-order%23new-answer', 'question_page');
);
Post as a guest
Required, but never shown
1 Answer
1
active
oldest
votes
1 Answer
1
active
oldest
votes
active
oldest
votes
active
oldest
votes
The big issue is that there has to be a buyer. If BTC (or whatever you trade in) drops 20% very suddenly, your order might not be filled. There has to be someone willing to buy at that price, so a sudden decrease can leave orders unfilled. Your stop-orders can and many times will work to protect your gains, but they are not guarantees.
answered 4 hours ago
Hart COHart CO
36k686103
add a comment |
The big issue is that there has to be a buyer. If BTC (or whatever you trade in) drops 20% very suddenly, your order might not be filled. There has to be someone willing to buy at that price, so a sudden decrease can leave orders unfilled. Your stop-orders can and many times will work to protect your gains, but they are not guarantees.
answered 4 hours ago
Hart COHart CO
36k686103
add a comment |
The big issue is that there has to be a buyer. If BTC (or whatever you trade in) drops 20% very suddenly, your order might not be filled. There has to be someone willing to buy at that price, so a sudden decrease can leave orders unfilled. Your stop-orders can and many times will work to protect your gains, but they are not guarantees.
answered 4 hours ago
Hart COHart CO
36k686103
The big issue is that there has to be a buyer. If BTC (or whatever you trade in) drops 20% very suddenly, your order might not be filled. There has to be someone willing to buy at that price, so a sudden decrease can leave orders unfilled. Your stop-orders can and many times will work to protect your gains, but they are not guarantees.
answered 4 hours ago
Hart COHart CO
36k686103
edited 4 hours ago
answered 4 hours ago
Hart COHart CO
36k686103
answered 4 hours ago
Hart COHart CO
36k686103
answered 4 hours ago
Hart COHart CO
36k686103
36k686103
add a comment |
add a comment |
Nick Solonko is a new contributor. Be nice, and check out our Code of Conduct.
Nick Solonko is a new contributor. Be nice, and check out our Code of Conduct.
Nick Solonko is a new contributor. Be nice, and check out our Code of Conduct.
Nick Solonko is a new contributor. Be nice, and check out our Code of Conduct.
Thanks for contributing an answer to Personal Finance & Money Stack Exchange!
- Please be sure to answer the question. Provide details and share your research!
But avoid …
- Asking for help, clarification, or responding to other answers.
- Making statements based on opinion; back them up with references or personal experience.
To learn more, see our tips on writing great answers.
Sign up or log in
StackExchange.ready(function ()
StackExchange.helpers.onClickDraftSave('#login-link');
);
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
StackExchange.ready(
function ()
StackExchange.openid.initPostLogin('.new-post-login', 'https%3a%2f%2fmoney.stackexchange.com%2fquestions%2f108002%2fwhy-take-crypto-profits-when-you-can-just-set-a-stop-order%23new-answer', 'question_page');
);
Post as a guest
Required, but never shown
Sign up or log in
StackExchange.ready(function ()
StackExchange.helpers.onClickDraftSave('#login-link');
);
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
Sign up or log in
StackExchange.ready(function ()
StackExchange.helpers.onClickDraftSave('#login-link');
);
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
Sign up or log in
StackExchange.ready(function ()
StackExchange.helpers.onClickDraftSave('#login-link');
);
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
1
Use a trailing stop order though there's no guarantee that you'll get a fill at that price if it's a very volatile issue.
– Bob Baerker
5 hours ago
1
Why ever take any profit?
– quid
4 hours ago