🚫 The stop-loss policy: I declare from this platform that it is an unsuccessful policy for several reasons.
📝 When you incur losses and apply a stop-loss policy, it may seem like a way to preserve capital 💰, but in reality, you haven't actually sold the assets yet, which means the loss isn't finalized as long as you haven't sold and are still holding them. The stop-loss results in selling your assets at a price lower than your purchase price, thus you lose that difference forever ❌.
📉 This difference may seem small at first, but since this trading method is fast and repetitive 🔄, you may find yourself incurring increasing losses over days, weeks, or months. Let's assume you applied the stop-loss on the first day and lost $3 💸, then after a week, your loss became $21, and after a month, it reached $87, yes, it’s only $3! In this case, you have lost a significant part of your wealth due to following the stop-loss system.
📈 Conversely, if you held onto these assets, there’s a possibility that their value will rise in the future, giving you a chance to recover your losses. Additionally, following a cost-reduction policy—i.e., buying more when the price drops by 10 to 20%—definitely helps reduce losses and increases the chances of benefiting from a price increase in the future ✅.
⚠️ However, this theory does not apply to fake currencies, meaning currencies that do not have real projects, but rely solely on media hype and the formation of price bubbles 🫧.
Because this type of currency often never returns to its previous peaks, making attempts to hold it 🚫. Generally, investing in these currencies 🚫 is fundamentally a mistake, regardless of any strategy followed, whether it be ✂️ stop-loss or 📉 cost reduction, because the true value of these assets may be ⚠️ completely worthless. When they collapse, there may be ❌ no chance of recovering the capital, making investing in them an unjustifiable risk.
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