Stop - Limit on your investment
Believe me, if you want to jump in to investment before that learn stop - limit. This is most important aspect to learn because of, lost money in investment without it you don’t know how much money that you are willing to lose. I know you don’t want to lose your one cent, but it might happen nobody knows the future. Let's say, if you are 99% right for you investment, but 1% might wipe out your investment. You may lose your all investment so what you will do if all your investment goes down. It’s hard, investor only think about profit at least most of them, but Wait you have to think how much money you might lose. Professional investment think about the Lose as well so that they can put a Stop - Limit on their investment.
How much % Should you Use for Stop - limit on your investment?
Whether you are investing on Stock or in cryptocurrency or everywhere, you must use stop - limit after you buy your Share. In most volatile market you can Put a stop loss less than 5% on your Capital in Most volatile market such as cryptocurrency, But before that you have to find a Right plan for you and you have to decide before jump into it.
These factors you should consider before put a Stop - Limit on your investment?
How much money are you willing to lose?:
The volatility of market?
You financial condition?
Different people have different financial conditions, so that everyone need to think about their financial condition before invest, before decide a stop - loss on their investment. Another things to consider is to think about the volatility of market. For example, if you are going to invest in Some Bank share, or Government bond then stop - Limit can be placed, and it is better to take 2 or 3% on capital but in cryptocurrency where volatility is very high sometimes coin price can Double, triple and might go down by same Percent so that in these volatile market stop - Limit can be put around 10%, 5% on total capital but this is too risky, in addition rewards is also high.
Again, you should consider your financial condition, do you have extra money to invest in market, do you have family and if you have child think at least 5 times, you need to feed then and you need to look after them so Consider you situation before jump into it.
What about me?
I jump into share investing after 2016, first i open Comsec Account, to invest in share market my one brother told me about this things. I am a person who is always looking for good opportunity. So that i thought that this is the good way to earn money. But later, what i get in news is Bitcoin price is surge by 1000% in one year. Then after that i jump in to cryptocurrency market, first i bought bitcoin on www.bitcoin.com.au but after that i realize that the fee is really high 5% fee it's so expensive to buy bitcoin, after that i jump in to the coinbase so that i can buy bitcoin in cheap price. Coinbase is really easy way to buy a Bitcoin, Litecoin, Ethereum and Bitcoin cash , you can use your debit and credit card, but it is recommend that buy a bitcoin using debit card cause your bank might charge more as a Cash advance. Then, i watched one course about cryptocurrency how to invest your money in cryptocurrency after i opened account in Bittrex, Poloniex, Bitfinex and in some other exchange Website. Initially, i was just watched the price of bitcoin in coinbase because of i have a Bitcoin, i thought it will increase like 500% or 1000% But its not happened. During these period i make some money, i borrow money from friends and invest in Bitcoin, lucky i am Make some profit, in that time i did not know Stop - Loss or anything like this just Buy, hold and sell.
Around january of 2018, i already invest in Many coin, like ripple, NEO, Ethereum and Stellar and many more. My money increase to USD $8,000$, I only just put some money, in that what i thought is that It's going to increase and increase. But, i was wrong my investment Went to USD $1000 its hard for me. From this, what i learn is that i need to Put - Stop Loss. I learned from this event. After that what i realize is that if i put a Stop - Loss in that time i would not loss my those money around, i’m not sure i have a investment in poloniex, Binance in some other Crypto Exchange website. I did not put large money on investment, but i just lost money that is already in table, if that time i made Stop - loss then i would not loose, but i learned lots of things from this.
Let's take a look in chart of Some Popular Coin that i have Till january but i did not put a Stop - Loss that why I just Leve profit that are already in table:
Picture: Price of Bitcoin, i bought on this price but i sell on USD $7,000 (No Stop - Loss)
Picture: Ethereum Price chart but Somehow i manage to Sell this Coin on highest price (No Stop - Loss)
Picture: Zclassic Price, now i did not sell on high i sell it on average 20$ (No - Stop Loss)
Picture: Price of Ripple (I have a 1200 XRP I sell it on around USD $0.70) (Without Stop - Loss)
Source: Coinmarketcap.com
Source: Coinmarketcap.com
From all of these images, that we can understand that, stop - limit is most important. Let’s say, if something happen then this is the wall to protect you from the disaster.
Conclusion
Please, please i want you to happy, i want you to protected that why i wrote this article. Without Stop - Loss don’t invest in anything. There is not 100% Guaranteed investment, that’s why you need to make a wall to protect from the disaster.
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