Types of slippage and how I struggled with them

Damn, I'm so fed up with this market fluctuation! Every time I try to buy crypto, the prices jump around like crazy. And here's what I've realized after many frustrating losses:

There are two types of this plague:

• Positive slippage is when you got lucky and bought cheaper than you planned. Yeah, that happens like almost never! Or extremely rarely, when the Universe decides to give you a little gift.

• Negative - this is the reality! When you see the price, you click "buy", and in the end, you pay more. And goodbye to your calculated profit! Sometimes I got burned so much that I wanted to quit trading altogether.

How I Learned Not to Lose Money

After I lost a decent amount due to misunderstanding this thing, I had to figure it out. Now I always set an acceptable slippage tolerance (slippage tolerance).

For example, I want to buy Bitcoin at $59,000, I set a limit of 0.5%. Simple math: 59,000 × 0.005 = $295. That is, I am willing to overpay a maximum of $295, not as before - whatever the system calculates.

This feature is usually available on all popular trading platforms. However, when the market is volatile, you have to increase the percentage, otherwise the order simply won't be executed, and you'll miss the moment.

Of course, you can manually calculate the slippage percentage: (market price - strike price) / market price. But who needs this hassle when the result won't be in your favor anyway?

In short, if you don't want to lose money like I once did, set this parameter consciously. Or better yet, only trade in a calm market, but that's a completely different story...

$BTC $ETH $SOL

#Проскальзывание #volatility