Topic: Do we need to have a stop loss if we are 100% positive about a trade? - page 3. (Read 623 times)

I do only consider on making use of a stop loss on the time that i do make some futures trading but if i do make out some spot trading then i dont really see for it to be necessary. Why?

You could always be able to have an option for you to hold instead on making some stoploss but well it would really be just that depending on you if you would really be that trying to make use of stop loss
specially if you are really that hedging but if you dont like to have that realized losses then it would be better not to see any stop losses because we know that prices could really swing up on levels on which we know that it is really that easy to make yourself get caught on the peak and ended up on holding. Therefore it would be that wise that having no stop losses on spot.

For futures or scalping then i could say that it would really be something that would really be that ideal because it would really be lessening up the potential losses
on which it is really just that suggested to have this one.

If you are trading without a stop loss, this most likely means that at some point you decide to exit the trade, right? This is not much different from the usual stop, perhaps the advantage of a stop loss is that it can work at night when you are sleeping. Or perhaps you take the position that no matter how much the price of your coin falls, you will still wait for the right targets because you are 100% confident in your transaction? But you say that you had many losing trades, which means that just because you are 100% confident does not mean that the trade will definitely be profitable.

I am also a trader, and I don't use stop loss, but I do encourage people to use it, especially newbies, in case if they are in a trade and everything goes against them, it's going to help them cut their losses because you can never be 100 percent sure about a trade, anything can happen at any moment. Also, people who are not active online to monitor their trade or busy for a particular period of time can easily make use of stop-loss in case things go wrong and they are not online. I don't use stop loss because whenever I am in a trade, I am always active online, and I monitor my trade. In case I notice any changes, I cut my losses myself.

Using stop loss is not bad in a trade, if you want to make use of it, it's fine, and if you think you don't need it in a trade, then it's your choice to choose to use stop loss or not. I am not against it in any way. If you know you are scared of losing a lot of money, then you can decide to use it. The main reason why people use stop-loss is to reduce their losses in trade.

Stop loss is beneficial strategy to reduces your defeat therefore when market situation are alarming then setting stop loss order is necessary but stop loss orders should not be set every time. Some people trade on daily basis therefore they have no idea that when they will sell their coins but if they have firm idea about their profit that the selected coins will pump then I think setting stop loss order is not necessary.

People sometimes loss money in trading because there is no guarantee that when you set a stop loss then your money will be free of risk because risk is always associated with trading. During Bull season one should not use stop loss like if correction take place in crypto market then trade without stop loss can also give you profit.

Stop loss psychology is not only about the uncertainty about any trade, Stop loss is the guard for your capital invested in any trade, even if you are sure about the trade 100% Analytically, but an additional layer of Stop loss can also only enhance your professionalism and risk management.

Also, it never takes hours to place/adjust the stop loss according to the trade type._hehe

Hmm, OP also congrats on your new rank I just noticed, that it's after a long time, as I've interacted with your posts and topics in the past few months.

It's up to you whether you want or not to use the stop loss method when the market is in bad condition. If you believe that your assets will rise again, then it's not a problem. However, stop loss is one method to stop deep losses that can occur, but it does not mean that the person actually stops. Sometimes people use this method to buy back when the price is at a lower price, to get a larger amount of assets, in the hope that, when the price rises, we will have lots of assets that we can sell to take advantage of the bear market by that method.

I believe it depends on the type of trade you are making. When you are in the spot market, you don't really need to worry a lot about stop-loss apart from a few cases where you might have bought a cryptocurrency that is highly volatile and you fear it may lose a lot of value in no time causing you a big loss and such tokens barely manage to regain value quickly after that and your investment will get stuck for a good long while which isn't good for a trader.

However, someone who trades in the futures market, it becomes essential to use stop-loss because you surely can't afford to lose all your amount in liquidation in case the market doesn't move in the direction you predicted, and no matter how confident you are, the market can always surprise you.

If you are constantly at the terminal and think that you can close the order in a timely manner, if the price moves in the opposite direction to your expectations, then you can do without stop loss. But if you do not have such an opportunity, then you should not neglect this function, which will allow to save a deposit in case of a dump or pump, depending on your position.

In my case I do not think about a stop loss as being optional, even if you have a great strategy and you are very positive about the outcome of your next trades, a stop loss still needs to be used.
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I believe it depends on someone's strategy if a user is taking a trade with a strategy where the market can sometimes move over 1% a few times then using of stop-loss can be a pain because instead of having a positive and winning trade the person will end up with a negative or losing trade. I know that some traders believe that stop-loss is not optional but when stop-loss can be the cause of confirm loss then it's better to avoid it and continue trading with your strategy. Stop-loss is not the only risk-management tool that a trader uses there are other risk-management measures that assure the risk to be minimum.


I won't say that my strategy is 100% working and there is 90% chance of winning but in some particular market conditions the strategy has been working at more then 90% winning rate for me. I know that you maybe thinking that what are those market conditions that I'm referring to then I would say a trader needs to give time to trading in order to understand those market conditions. I won't place any trades if market is highly bullish or highly bearish because at those times the strategy that I use will most probably fail without a question. I use other risk-management measures that assure me profitable trade.

I'm not a greedy trader by any means and sometimes I have to wait for weeks or months to get a good and profitable trade but on other times I get 1-2 trade per day depending on the conditions of the market. It's always better to have trades by following a strategy instead of predicting the market based on emotional sentiments. That in end will make you earn some profits and I believe that something is better then nothing. I have used my strategy with 50x leverage sometimes and fortunately I got good winning rate with those trades as well. I risk 2-4% of my capital for such high leverage trades but I can confirm that sometimes high leverage trades can give you good amount in profit if you trust your strategy and yourself.

I don't use stop loss if am watching the market and am on a trade, what I do is I cut my losses when a trade refused going my way after entering and the trade has been dancing up and down without any direction. But the case at which I use stop loss is when I know I won't be online to monitor it probably am going to be out of data or my phone is running low on battery that's the most cases I use STOP LOSS.

I don't believe that trading without stop-loss improve your trading abilities. There is an invalidity zone where if the price went to that area I will consider that my analysis is wrong or the market will go to the opposite direction. How can you survive the market if you loss 3 to 5 trades if you didn't put a stop-loss? Honestly, if you apply risk management even if you lose 10 trades or more, you probably still have remaining funds to trades. I have tried not to put stop-loss in my first trades but it won't work, maybe it's because the winning rate of my strategy is very low. But if you are profitable yet in trading and your win rate is around 90% I think it will work, but sad to say that there is no strategy having that win rate.

It depends on the actual mindset of a trader. If he has reliable experiences in trading that makes him confident to trade and expect positive outcome, then using stop loss might be useless. Even myself if I have obtained the best strategies in trading that work for me for a long time, then I will never resort using this stop loss. It's always challenging if you know for yourself that you are trading for success, and not that you end up trading using stop loss because you have fears from losing.

While this is true for majority of the traders, but I still believe that some traders are still dependent from using stop loss. And if it works for them, then I have no issues with that.

I doubt that I have used stop loss while trading cryptocurrency, but if it were when I was into forex trading, I know I have applied stop loss a few times, but that did not even give the result I expected. I think the best thing to do as a trader is just to trade with low leverage, and if you are using low leverage, there is no need to apply the stop loss. The best thing to do is just use low leverage and accumulate your profit gradually. If you are also using high leverage, that's when you might have the need to use stop loss, but it will make you not be steady in the market, like you will always cultivate some atom of fear in every trade you want to enter. I don't advise that the stop-loss feature is what a trader should get used to.

If you are not an experienced trader, it is highly encouraged to use a stop loss to protect your account from total liquidation because there are some newbies mistakes that we will do starting our trading journey that may result in our trading account wiped. But if you are an experienced trader and have good knowledge of the market and know when to take profits and as well exit the market without stop loss, then good for you.

I tried trading many times without stop loss after observing that most of the time I used stop loss the market usually comes to hit my stop loss, The result was not funny, and the market ducked with me because that was when I first had my trading account got wiped by the market

I think stoploss is a very good thing. But it is very useful if you are not in front of the computer system. It protects your account from sudden dumps and pumps in the market that liquidate your account. So, if you are holding coins in spot trading then don't use stop loss. If rate goes down then buy some more quantity at cheap prices.

If you are 100% positive about a trade of course you do not need it, but the trouble there is not the stop loss, it's the "how are you 100% certain about a trade"? I mean do you realize that you can NEVER be 100% sure about a trade right? It's literally mathematically impossible to be 100% certain about a trade and you should be checking the situation a little differently.

I think it's quite clear that we are talking about a situation where life is a bit harder and you need to make sure you have stop loss that you could use, it would make it a lot better for you. Plus, even if you are 100% certain about it, putting it there just in case can't hurt you, like you say it will go up, and it does go up, then why wouldn't you have stop loss, it doesn't change anything.

Stop loss is used to avoid unexpected drop on the price that will inflict you unexpected losses. There’s always a chance that an opposite result will come even if you are 100% positive on your investment since you don’t know what’s happening behind your investment.

Stop loss will not hurt you if you knew how to setup it properly. Also if you are positive on your investment then you don’t have to worry about your stop loss since it will not be hit according to your belief. It’s like some insurance but is free which means you have nothing to lose when you use it but it will save your investment once unexpected dip happen when you are not active.

Personally, I have never used stop losses even once in my life, simply because I have always been convinced that a coin that is falling is better to wait until it rises again.

But sometimes this strategy fails because some coins fall and do not rise again, so using a stop loss is best in such cases.

The conclusion I draw from my experience is that stop loss is not used in strong coins such as Bitcoin and Ethereum, but it is necessary to use it when trading Shitcoin or other coins that you are not sure will rise again in the future.

yes, we need that even if your analysis is 100% perfect, remember that crypto is very volatile, many things can happen so if you want to take care of your capital, set a stop loss for your safety, even if you can sleep on it, and of course, put a take profit, that would help

In my case I do not think about a stop loss as being optional, even if you have a great strategy and you are very positive about the outcome of your next trades, a stop loss still needs to be used.

This is not about being fearful or nervous about the market moving differently than what you have predicted, this is simply a safety measure, a stop loss is like the seat belts that you can find in your car, you will not need them 99% of the time, but when you do you will thank your good luck you decided it you put it on, and a stop loss works based on the same principles.