Topic: Do we need to have a stop loss if we are 100% positive about a trade? - page 2. (Read 554 times)

This is crypto trading, and it will be difficult for trader to be 100% positive with the market, because the price can pump higher today and you are not satisfy with the current price and you want it to increase more before you can sell, and it can make you to regret or rejoice which you will not miss the two at once. I use stop loss in my crypto trading since I know little about the market, and how to hold when the bearish season is still on which is a sign that if you trade at the moment you will go to experience  losses in your trading, but if you continue holding for bullish season to come before you can trade you will definitely achieve income that will make you happy which is a simple strategy many traders use to avoid loss in the crypto market.

A stop loss is there to protect you, I know that many traders do not like to use a stop loss as they feel that the stop loss will get them out of their position when the price goes down, and then the market will go back to where it was just a few minutes ago.

And while this is common, the stop loss is not at fault, it is just that the trader is setting a stop loss that is simply to close to the current levels at which the market is trading, so if they set their stop loss at a lower level they will reduce the times they encounter this, while still enjoying the protection that a stop loss offers.

Perhaps, the use of stop loss is for us not to lose our big as it is automatically completed when reaches the set price. This usually happens during the bear season but if we are very active in trading and have enough time in trading, I don't think it is needed for us to use this one. For my entire trading career, I have used this a few times and it is because I don't place a trade if the market condition is on the downside, I used to analyze the market first before trading.

Even in a bull market, the stop loss does not lose its relevance. And if the market corrects, you will have a great opportunity to redeem coins at a lower price after your position is closed at a stop loss, and this will ultimately only increase your profit.

I use stoploss but don't use take profit many times, I use stoploss to cut losses short.
when I was new to trading I was also not taking stoploss seriously because of this I doesn't able to cut my losses short and while watching the trade going against me, my mind isn't able to cut the trade after knowing that i is a losing trade. it become very hard to control emotions, and when I place stoploss first it helps me to cut my losses short and to keep a 1 percentage loss per trade. and helps me to not trade emotionally.

You are lucky if you are still able to hold it for months or years, but if you are not able to hold it, it will result in big losses. therefore the use of stoploss is necessary only to be able to regulate the level of risk every time you make a transaction, because many traders seem to be able to withstand floating minus but cannot withstand floating plus, then if the minus always increases in the end they will become confused themselves.

Yea, I don't use stop loss on order if I have put order in market bloodbath (less chance to fall further) and I trust that particular coin. I have few orders without stop loss at this moment too.

Do not get me wrong, I have gotten my whole positions liquidated due to not using SL but I still prefer no SL, you do you.

I believe that the use of stop loss is also mandatory not only for margin trading, but also for trading on the spot market. And if your position can be liquidated in margin trading, then in the spot market you can turn from a trader into a long-term investor and then wait for months or even years for the price of the coin to recover to its previous level.

If spot trading is what we often do in the trading activity that we do, in my opinion there is no need for a stop, maybe only for those who often do futures trade, margin or leverage trading or perpetual among these I think a stop loss is needed here in what I mentioned.

Because if the stop loss is not really used, the capital that will be used there will be quickly dissolved, so it is important to use the stop loss so that you can take longer to carry out the trading activity.

I believe the same, it is easy to think that you do not need a stop loss as if you are a good trader you may spend years before you are so wrong on your prediction that your stop loss needs to save you from some massive losses.

However by refusing to use a stop loss altogether the risk that we are taking multiplies several times over, as now if for some reason we make a mistake there is not going to be any tool to help us to stop our losses automatically, and by the time we realize our mistake we may have accumulated way bigger losses than what we can tolerate.

Setting a stop loss is best only when you are starting a trade or when you are doing leverage in trading. Since the future market is not guaranteed safe and profitable, then it's a wise decision to use stop-loss to prevent from losing too much. However, if you have high experiences as a trader, and you know already how to maximize your profits and control your losses, then you can trade successfully without the need of a stop-loss. Using stop-loss does not prevent you from losing, but it will only limit your losses not to fall into huge and massive losses.

While trading in the market still remains risky and uncertain, then using stop-loss could offer you help but if you become dependent on it, then chances are  that you can never maximize your trading profits as much as you want it.

Were you trading last year around May last year to be precisely? I'm asking because without stop loss in long position, you will probably have nothing left this year except if you were among the 1% people that short bitcoin and other coins from there top to bottom like USTC and Luna, stop loss really saves a lot of trades from damage that time because you might be sleeping when market will start dipping and without it, you will be screw because exchange will not help you terminate or close a position for you.


I understand your explanation but stop loss aren't just for how you describe but in emergency situations that you don't have power over. You can have an open trade and then decide to take a nap or perhaps go out and live your thing doing it's market things and you were carried away or even forget that you left a trade open and then the market crash, you will be regret doing that without a stop loss because it actually stop you from having lots of damage from the market.

The reason why some don't appreciate stop loss is because the market is unidirectional and everyone has fous right now on halving, so weight not see bitcoin crashing soon but I'm very confident that when the market is ready for a correction, you will definitely use stop loss else you hands will burn.

Can a trade be executed without a set stop loss?
Stop losses are always important and good to be used by every trader. Understanding how to place stop loss has to be mastered. I do not think that there is a time when a trader should not consider a stop loss due to over confidence in their analysis. Stop loss is to reduce losses and as a trader the possibility of making losses should always be considered just as profit is considered. To trade without considering losses is reckless, and to practice such recklessness can be the beginning of losses.

It is very important for us to keep using stop lose whenever we trade. This had helped many traders in the market and safe them of potential loses. It is good for us to know what we are doing or else we might end up losing big from the market. Crypto market is huge and tradable to any extend but the understanding of the market and the use of stop lose will aid us to avert lose.
Those that are good and have made profits from the market without stop loses can still become a victim of huge loses because of not using it.

There are both benefits and disadvantages of using a stop loss. At certain time stop loss becomes boon for you, whereas at certain time stop loss doesn’t fit at all. If you are a trader who trades with high leverage then stop loss is a must. After all it’s your hard earned money at the end of the day. If you trading with very less leverage, then it’s better to not use the stop loss. I am saying this from my personal experience.

I used to stop loss after watching video on YouTube at first time I try to trading cryptocurrency, but now I no longer use it. Instead, I apply stop loss to coins that I consider uncertain, and indeed, my limited trading knowledge makes me hesitant every time I enter a trade. I think it was a very valuable learning experience for me in the past because it helped me understand the actual function of a stop loss.

Nowadays, I only buy coins with a my confidence and avoid every coin that make me hesitate. I don't want confuse myself in trading anymore in trading, which is why I stopped using stop loss for the past year and try to still believe my hand on hodling asset. My confidence in my trading decisions is growing every time I make mistake, and I believe it's an accumulation of my trading experiences, leading to a sense of high confidence.

Being a potential bitcoin trader, I think that it'll be best for me to use stop loss, to minimize my loses, because as a beginner I might not be knowledgeable enough to know when the market is going against me. I think when I eventually gets to start trading, I'll rely on stop loss, until when my confidence level starts to grow, after I must have had a lot of practical experiences. I don't like to be a hero when it comes to my financial matters, I'll rather be humble and take all the precautionary measures to possibly avoid having a single lose. Another thing to consider is that  we all have different levels of risk absorber, if you know that you can't withstand high risks, then it's better to look for precautionary measures like stop loss,  like in this case of bitcoin trading.

There's no need to use stop loss if you're watching your trade or you're using a low leverage.
And for the 100% positive, there's no such thing like that. Your confidence might be 100% but the market is always unpredictable, so there's no way to tell if your trade is going to be profitable or not. The best way to use stop loss is when you're not watching your trade, like you're going to do something else.

Whether you're in spot trading or futures trading, as long as you're not confident with how your trades will end up, then I suggest to use stop-loss especially if you are doing leverage when trading. That is from my own point of view, but if you do trading with an amount that you can afford to lose, then using stop-loss might not be necesary at all.

However, if you have uncontrollable fears from losing regardless of its amount, I guess trading with stop-loss is highly advisable. But make sure to overcome your future fears because that won't make you a successful and profitable trader in the long run.

As far as I know, the stop loss is used when you do futures trading, margin trading, or perpetual trading. But if you're going to do trading activity on the spot, even if you don't use a stop loss, even if you don't, it's okay.

Because, like you, I do spot trading most of the time, but I also never use stop losses in the exchange, which is often done by trading activity. And so far, the experience that I have encountered in this matter is also good.