Use stoploss

This is the most important thing every trader should use. Applying stoploss is the only effective way to protect your portfolio from losses. Maybe many people disagree with this view. So why use it?

Imagine someone without a stoploss holding Bitcoin for the third year since $ 20,000. Or other altcoins that he bought on top and now hold a 95% loss on the portfolio. Wouldn’t it be better to close for example in a 5% loss and open up other trades with which I would make up for the loss? How to keep an asset in extreme loss for several years? Of course, the basis of any successful trader is to use stoploss. There is nothing else that can protect the account from loss.

Follow your strategy

While Stoploss could end the article without problems, because it is the key to success, there are still some other interesting ways to protect capital. If you are a hodler, follow your strategy. Do not try to sell or buy at any cost after a minor or major decline. This is a long-term investment, so after a few years we can assess whether your strategy has been successful or not.

Think and explore

This is one way that can move any trader far forward. If you fail, you have a lot of losing trades, nothing serious is happening. Even losses are part of trading, especially for beginners. Sometimes it is good to completely change your business strategy. Even often changing the indicator or pattern that you use to trade can help.

Move the capital

One of the common mistakes for beginners is that they all bet on one card. For all its capital, it buys one asset, which it often holds for several years. It is rather a lottery, because not everything has to grow. It is true that if someone bought XRP or ETH instead of, for example, BTC 5 years ago, they would be in much more profit. But we never know which asset will be the most profitable. Therefore, let us try to diversify capital into more assets. Alternatively, in addition to the BTC, to own, for example, a few grams of gold or other asset.

Don’t panic

The last way to protect capital from loss will be rather encouraging. In these difficult times when everything falls, it is important to keep your head cool. If we are aware of what we are going into and where we have invested, there is no reason to panic. There have been so many major sinks or recessions in the past, but strong projects, including Bitcoin, have always recovered and outperformed their ATH. It is only a matter of time before Bitocin will trade again for several tens of thousands of USD.