Who knew that Blockfolio is useful for anything else but constantly refreshing to see how much STEEM went up in the last second?!
We'll find out today that it is possible to - at least - feign that you are doing something useful when your stream of alarms and notifications make any conversation impossible or annoying ( for your partner not yourself, come on, we love our notifications :D ).
In the last post I've talked about STOP-LOSS. Very useful little tool to not lose your shirt.
But what do you do when you STOP-LOSS hits? And what if you want to sell?
These are important questions that you start asking once you notice something kind of annoying:
You can not put STOP-LOSS and "take profit" condition in the same time on exchanges.
What I mean by that is that if you have a certain amount of coins you can either "block" them by setting a stop loss ( sell if price under "x") or "block" them on profit taking ( sell if price is at "x" value). So that means that you need to make a choice but you still want to be there if the market swings the other way.
Here's where Blockfolio comes in!
Blockfolio is nice for telling you something hit a certain price but it's very bad at telling the price unless you open it so the info you get must be useful at a glance. Price over "1000$" can mean 3000$ or 1010$ but you don't care, cause you know you need to go and place a sell order.
The most important thing here is that you need to set alarms with a purpose. I hate it when people set random alarms. Maybe I'm a bit too obsessed with this? :D
Don't set a STOP-LOSS but set a sell point. This is great because something you catch it on the way up but it might be already a little lower when you notice. However, you still need to put an alarm for the STOP LOSS!
So what I'd do is set an alarm on Blockfolio and check back if it hits. I'd always set it a little higher than my stop loss just because I want to see what happens near it.
Once you are on the exchange you can chose to sell or wait out a bit more.
You can also chose to buy more and do the good old "Averaging down" thingy.
This still doesn't mean you should set an alarm for when your sell hits cause you might want to go in and see what happens, maybe re-buy if it's going down or set a new sell at a higher point if you still have coins.
The disadvantage of this method is that it's a bit riskier, you can forget to set an alarm or it can go down faster than you can act on it and lose money. There is also a disadvantage that you sell too early if a pump is happening.
Advantages: honestly I do not see any but if you do, please share!
For me: BIG NO!
If you read the Stop-loss post and felt inspired then you might become a little addicted to setting stop-losses. I know I love a good stop-loss. You sleep like a baby!!
Until...a coin of yours is hitting the stop-loss then it goes back UP! just afterwards. DAMN IT! <-- happens often.
So, here's a solution. Set an alarm for your stop-loss and jump on the exchange as soon as it hits. You need to be there fast to see what is going on. If the coins is in freefall you just averted some disaster. However if this is just a silly fall, you might decide to get back right in. That's true freedom.
But what about my profits!?
Well, same thing: Alarms on your first sell order. When it hits, go sell whatever you want and...
SET A NEW STOP LOSS!!
If the coin goes up 20% then down under your initial buy and you did not sell somewhere, that's a tragedy to me!
So after a coin hits a sell point ( say 30% over the initial buy), you set a new STOP LOSS above your initial buy so if ti goes down you never lose on it.
I think that's a very elegant way to do things.
Be careful though, if you do this with too many shitcoins you will have alarms non stop and it gets confusing tiring and honestly, not fun!
Ok, that's it from me on this topic and as always I welcome your comments and questions!
