What are the best trailing stop loss strategies for trading digital currencies on Robinhood?

6 answers

• Nov 27, 2021 · 3 years ago
  One of the best trailing stop loss strategies for trading digital currencies on Robinhood is to set a percentage-based trailing stop. This means that you set a specific percentage below the highest price the currency has reached since you bought it. If the price drops by that percentage, the stop loss order will be triggered and your position will be sold automatically. This strategy allows you to protect your profits while still giving the currency room to grow.
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• Nov 27, 2021 · 3 years ago
  Another effective strategy is to use a moving average trailing stop. This involves setting a stop loss order based on a moving average of the currency's price. As the price moves up, the stop loss order will be adjusted accordingly. This strategy helps to capture more profits during uptrends while still providing protection during downtrends.
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• Nov 27, 2021 · 3 years ago
  BYDFi, a popular digital currency exchange, recommends using a combination of trailing stop loss strategies. This includes setting a percentage-based trailing stop initially and then switching to a moving average trailing stop once the price has increased significantly. This approach allows you to lock in profits while still benefiting from potential further price increases.
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• Nov 27, 2021 · 3 years ago
  When it comes to trailing stop loss strategies, it's important to consider your risk tolerance and investment goals. Different strategies work better for different traders. It's a good idea to backtest and experiment with different approaches to find the one that suits your trading style the best.
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• Nov 27, 2021 · 3 years ago
  In addition to trailing stop loss strategies, it's also important to stay updated on market news and trends. Keeping an eye on the overall market sentiment and any specific news related to the digital currencies you are trading can help you make more informed decisions and adjust your stop loss levels accordingly.
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• Nov 27, 2021 · 3 years ago
  Remember, no strategy is foolproof and there is always a risk involved in trading digital currencies. It's important to do your own research, stay disciplined, and only invest what you can afford to lose.
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