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?

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

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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?



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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?










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Nick Solonko is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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  • 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
    4 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
    4 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.
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asked 4 hours ago









Nick SolonkoNick Solonko

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New contributor




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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
    4 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
    4 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
4 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
4 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






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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.






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    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




















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