You'll probably just end up getting stopped loss and taking profit too early and a host of other random miscalculations and mistimings. Most traders do. Most guys get sucked up into the market hurricane tornado while losing their panties.
SP500 Trade Type: Sell (Short) Entry Price: 6.468 Stop Loss (SL): 6.500 Take Profit (TP1): 6.300 Take Profit (TP2): 6.150
It's difficult to have stop losses with crypto because it's too volatile. You'll save more money NOT using a stop loss than getting stopped out multiple times. And the exchange owners and bigger players know where these stops are at. It's way better to use the notification alert system instead of a stop
I dont do automated trading, but if i did it would probably be designed to take advantage of where stops are placed.
EUR/AUD Trade Type: Sell (Short) Entry Price: 1.7974 Stop Loss (SL): 1.81500 Take Profit (TP1): 1.7000 Take Profit (TP2): 1.4074
XAU/EUR Trade Type: Sell (Short) Entry Price: 2873 Stop Loss (SL): 2877 Take Profit (TP1): 2816 Take Profit (TP2): 2691
The question is , how far do you let it go against you before you capitulate? What do you mean by using a notification alert system. What do you do when you get the alert?
I do long term holding and make my money by shorting. Because ultimately I know what i'm investing in is going to go higher. So I'll add to my bags or I'll sell the profited holdings from shorting. So if I sell and it moves against me I might let it go and wait for a pullback (most of the time on the 4 hour chart) before buying back in. I really don't have a set percentage of how far it moves against me before buying back in. It all depends on the news and the indicators, but most of the time 3 sometimes 5% if it's super bullish and I don't think any pullback is in the cards. And when I say alert system, I mean a price notification alert on your phone The risk is relatively small because in the bigger picture I have sold and already made a profit from something I bought in its early stages, but the downside is that I miss a little bit of profit when I cash out completely from selling too early.