Maybe some of us know September as a cheerful September. But what if, in September, you even have to cut your loss? Do you think you can still be happy or not?
Do you think you already know what cut loss is? So, a cut loss is a strategy carried out when your crypto asset position is closed to prevent further losses later. Well, this cut loss strategy is designed to minimize potential losses in a post.
Before trading, of course, you know that the price movements of these crypto assets are very volatile, and of course, traders want to profit from trading. However, because the price of crypto assets is very volatile, you also have to be prepared for the possibilities that can happen. For example, when the market is going bearish, you must be ready to cut the losses you experience to get out of a bear market position to maintain your capital.
If you ask, when is the ideal limit for cut loss? The perfect boundary for cut loss is not specific because this can be adjusted to the risk profile of each trader. So back to yourself, how strong is it to bear the loss?
Then, what if you’ve made a cut loss? What else should be done?
When experiencing losses in a short time, most traders will turn from speculators to long-term investors because this is a better long-term option.
If you decide to make a cut loss, there are two options you can do:
- You can hold and turn it into a long-term investment when your crypto asset experiences a bearish phase and you are forced to cut losses. So, for example, the number three percent is the total loss you earn, and you can tolerate it. You can save the crypto asset for the next two to three years if you feel the crypto asset can still rise in the future.
- Selling crypto assets. If you feel the crypto asset cannot go up or rebound, you can sell it. Because it is feared the price could fall continuously and increase losses. But you can try investing in other assets, of course, by doing a dyor first!
There are several tips for minimizing cut losses, namely by doing dyor or doing your research. If you want to become a trader, you also have to learn a lot about the crypto world, along with all its assets. This is done so that you know which crypto assets have sound fundamentals and are suitable for the type of trader like you. At Indodax academy, there is a lot of information, such as educational articles and coin ratings, every time a new coin is listed, so you can learn whether the coin matches your trading type or not.
On social media, you can also see news about crypto assets and the impact of this news on the price of crypto assets the next day. But that doesn’t mean that if you know the information, you should rush to buy or sell crypto assets just because it’s being talked about. As monic said, you need to analyze many crypto assets before buying!
All traders expect profits, and many have already benefited from trading crypto assets. For those of you who haven’t experienced profits or who usually gain but are now losing, you have to stay optimistic! Find out more about trading and crypto assets. Come on, get up and be happy again! Because anything can happen. I hope this explanation helps you! See you in the following video!
