News

Investing - Not cutting losses

07-10-2021


Investing continuously requires analysis of your strategies and skilful risk assessment, but also courage and the ability to accept loss. In this article, we will highlight one of the most common mistakes made by investors.

Not cutting losses is a mistake made very often. No investor, whether experienced or not, is immune to it. Many investors simply refuse to acknowledge their mistakes and accept losses, but it is worth adopting a critical approach your investment mistakes. If you want to be effective, you should acknowledge your mistake each time you hold your position too long and it drains your exchange account. At the same time, it is a good idea to determine the associated investment risk before deciding to invest in a particular cryptocurrency. Before investing your funds, answer the following questions:

  • What risks can I take?
  • When should I enter into the transaction and set stop-loss?
  • What is the risk-reward ratio?

Setting a stop-loss order as soon as you enter into the transaction will protect you from unnecessary losses on the exchange account.

How do ‘stop’ offers work? There are two types available on our exchange - ‘stop limit’ and ‘stop market’. To issue the stop limit offer in PRO Mode, select ‘Stop Limit’ and fill in the following fields:

  • Rate - your offer will be issued at this rate
  • Quantity - the amount of the cryptocurrencies you want to buy/sell
  • Activation rate - your offer will be issued once the rate reaches the level you have set in this field

Funds are then blocked for the offer issued.

To issue a stop market offer in PRO Mode, select ‘Stop Market’ and complete the following fields:

  • Activation rate - a quick transaction will be made once the rate reaches the level you have set in this field
  • Quantity - the amount of the cryptocurrencies you want to buy/sell

Funds are then blocked for the offer issued. Please note that the stop market offer does not guarantee purchase/sale in full at the activation rate you specify.