Why take crypto profits when you can just set a stop order?





.everyoneloves__top-leaderboard:empty,.everyoneloves__mid-leaderboard:empty,.everyoneloves__bot-mid-leaderboard:empty{ margin-bottom:0;
}







2















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?










share|improve this question







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


















2















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?










share|improve this question







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














2












2








2








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?










share|improve this question







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






share|improve this question







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.











share|improve this question







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.









share|improve this question




share|improve this question






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




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














  • 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










1 Answer
1






active

oldest

votes


















4














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.






share|improve this answer


























    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.










    draft saved

    draft discarded


















    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









    4














    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.






    share|improve this answer






























      4














      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.






      share|improve this answer




























        4












        4








        4







        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.






        share|improve this answer















        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.







        share|improve this answer














        share|improve this answer



        share|improve this answer








        edited 4 hours ago

























        answered 4 hours ago









        Hart COHart CO

        36k686103




        36k686103






















            Nick Solonko is a new contributor. Be nice, and check out our Code of Conduct.










            draft saved

            draft discarded


















            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.




            draft saved


            draft discarded














            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





















































            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







            Popular posts from this blog

            How to label and detect the document text images

            Vallis Paradisi

            Tabula Rosettana