A Hard Lesson Learned
I'm definitely new the cryptocurrency world. I got on board during one of Bitcoin's recent surges. Starting with Coinbase, I was excited about the new features offered by Kraken.
When the correction began, I moved to fiat and Litecoin. I was mostly holding Ethereum, which skyrocketed right after I sold my holdings. I wasn't worried, there's always another opportunity and Lightcoin was the safer long-term choice amidst the volatility of Bitcoin and Ethereum.
When all my funds were finally transferred over to Kraken, I decided to add a stop-loss rule to my Lightcoin at the recommended 24.50.
The next day my heart sunk when I saw that Lightcoin had bounced down to around 23.00 and then quickly back up to around 28.00. By the time I knew what had happened, I had already lost about $1000.
I'm sharing this story for educational purposes. Be careful out there! As I read all over the forum and website, don't invest what you can't afford to lose. And read the full instruction manual before using advanced trading features on Kraken or any other trading platform. Trade smart!
What kind of trading rules (stop-loss, take profit, etc.) do you use to maximize your profit?
Does anyone have any rules in place to avoid the plight I found myself in when my stop-loss level was hit, but the price quickly rebounded?
I'd love to hear your strategies or stories!