I know, I know, that is trading blasphemy! To even suggest that one has a position without a stop is just crazy right? But does that still apply to Bitcoin? If you are so cock-sure that BTC is going to zero or the moon then why have such tight stops? Why keep getting pushed off your position for a loss over and over and over again?
The only choices I see is to start placing larger stops or to not have a stop at all. Or to get out completely. The last choice is to just keep doing what you’re doing. If that is working for you then why? Do you jump right back in when you get stopped out?
My preference is to be long with no stop at all. Heck, for that matter, I have even removed most of my BTC off of the exchange. I can’t even sell it right now if I wanted to without transferring it back to the exchange from private storage. (And that’s not going to happen at these prices) So I guess you could call me a believer.
But what about you traders? What’s your stance on stops and how well are they working for you? What is the perfect place to put your stops? I’m sure they have saved many asses over the last year or so but I’m also sure they have ground many accounts down quite a bit.
What has been your experience?