Do we need to have a stop loss if we are 100% positive about a trade? - page 4.

GreatArkansas

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Quote from: SamReomo on November 28, 2023, 05:14:12 PM

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I would like to know that what you guys think about stop-losses, and how often you guys use stop-losses to avoid getting huge losses in your trades?

It seems for me optional, I see some traders especially master traders as copy traders, and some of them are just letting their trades liquidate instead of setting stop losses, it's just very strange for me, they are just letting their trades to liquidate maybe also because of the win rate, and they can close the trade when it will be breakeven.

johnsaributua

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There is an opinion that it is better to lose one than three, detecting with the stop loss technique with the image of the analysis chart that has been made, in my opinion if it is standing between the stop loss it is like giving yourself up, meaning that someone else is hiding there to execute the price break point Sad

. I prefer to sell instantly when the profit is point one, two and three at the price of the break in the past. For me it is better to sell 1/4 of the trading capital divided by 4 sessions. it is more calculating sometimes the percentage even though the 4th position is a thin profit even vulnerable, but I prefer without stop loss like you with my own decision. avoid blaming yourself from leaving too soon. Keep the price notification always active if it has touched the target to sell or buy.

TelolettOm

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Quote from: SamReomo on November 28, 2023, 05:14:12 PM

I have been into trading for many years but I have never used stop-loss myself because I believe that stop-losses won't help a trader to improve his/her trading abilities. The stop-losses are something that will protect a trader from losing a lot of money in a trade but if a trader doesn't conquer the fear then that's the worst thing I guess.

In fact, this will depend on each trader, right? how they organize their strategies before, during, and after placing their positions in trading. As long as it has worked well so far and is worth it, then just do it as you like.

However, it is true that there are many traders who use SL/CL as one of their trading strategies, especially if it is in Future trading, to reduce the risk of more losses due to liquidation. In particular, sometimes we trade at night and we are about to go to sleep, so many people implement SL/CL to reduce the risk of high levels of loss, so the point is that losses can still be measured. And usually this is for day traders who want short term or fast trading. So that when they reach SL, they can use other strategies to cover the loss. So, this is one of the strategies used. Once again, it comes back to each trader.

SamReomo

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Quote from: Bitcoin_Arena on November 28, 2023, 07:40:42 PM

The day the market plummets by over 50% including Bitcoin like it did in March 2020 is the day you will know why some people use SL Grin

It's not about being brave or a coward. It's a just a risk management tool.

Well, I agree with you that Bitcoin can also move to very high %age a few days but I have my own strategy that I use and fortunately the strategy also works on those days when Bitcoin move to 50% or even more. I have been following my own strategy that has helped me secure profitable trades.

I have only faced a few losses when I traded very high volatility pump and dump coins. I know that it sounds funny but I had done that intentionally to see that how good my strategy is but unfortunately on those pump and dump coins my strategy didn't work at all.

If I'm not wrong then Bitcoin hasn't moved to very high %age in short time frame like 1 min, 3 min, 5 min, 15 min, and and even in 30min time frame. In fact I mostly do futures trading on Bitcoin so I don't think that my strategy is going to go down.

I didn't say that someone is brave or coward but I said that how someone can manage his/her emotions because fear is an emotion and if a trader has that emotion then his/her losses can be very high because fear and greed won't allow that trader to have successful trades very often. I won't claim to be a top level trader but I'm fortunate to have learned some skills that allow me to have positive trades.

Johnyz

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Quote from: Natalim on November 29, 2023, 05:35:14 PM

It is not needed anymore if you are 100% sure about your trade. In fact, there is no reason to use a stop loss if you are a daily trader because you know when to sell. Definitely, as a trader we already know what is good for us and if this strategy really works well. Of course, we know what we are doing and what would help to improve our trading results. Therefore, if we think the use of stop loss is not necessary, then there is no reason to use it as well. This strategy is usually used for the starters but not those who have experience already.

I’m wondering if there’s a real 100% sure about your trades and it looks like there’s no risk anymore.
And knowing when to sell is just like having a stop loss especially if the market didn’t favor your position. Stop loss is advisable even if you are a good trader already, just learned from those who got liquidated because of the market volatility, they don’t have the stop loss and that’s why they lose everything. Better to have this than to say sorry later on, you’ll lose nothing by just setting up your stop loss.

Russlenat

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Quote from: SamReomo on November 28, 2023, 05:14:12 PM

I have been into trading for many years but I have never used stop-loss myself because I believe that stop-losses won't help a trader to improve his/her trading abilities. The stop-losses are something that will protect a trader from losing a lot of money in a trade but if a trader doesn't conquer the fear then that's the worst thing I guess.

I have won many trades and I've also lost many trades but I have never used a stop-loss for a single time and that has helped me as a trader to improve the areas that needed that improvement. I'm not really against stop-losses but I believe they can cause fear in the mind of a trader and the trader might not take risks if he/she fears about the losses that take place if the trades go wrong.

I would like to know that what you guys think about stop-losses, and how often you guys use stop-losses to avoid getting huge losses in your trades?

Using stop loss does not actually guarantee that you're not going to lose anymore. There are always inevitable losses when we trade, even pro traders are not free from it. But I'm not actually convinced on the idea of stop loss because I know for sure that If I always resort into using stop loss everytime my trades are not safe, then I won't gain the chance to improve myself and to improve my performance as a trader. For me, trading losses are actually unavoidable but the fact that we learned from it, then we can minimize committing losses the next time we decide to trade.

Probably, I am saying this because I'm not actually trading in leverage. But even to those who trade with leverage, its not good all the time that one should resort into using stop loss, its useless if you decide to take the risk and won't find ways how to maximize your trading skills so you can be free from series of losses in trading.

Natalim

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It is not needed anymore if you are 100% sure about your trade. In fact, there is no reason to use a stop loss if you are a daily trader because you know when to sell. Definitely, as a trader we already know what is good for us and if this strategy really works well. Of course, we know what we are doing and what would help to improve our trading results. Therefore, if we think the use of stop loss is not necessary, then there is no reason to use it as well. This strategy is usually used for the starters but not those who have experience already.

justdimin

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Quote from: mindrust on November 29, 2023, 07:29:45 AM

Definitely not. If you are sure of the asset you are buying, why sell? You just need to buy more when it goes down. The more it falls, the more you buy. Actually in this case it is even better if the asset’s price is dropping because you can buy more for a cheaper price.

Let’s say you are in the real estate business and you have $10 million but no homes. Each house costs a million usd and you can buy 10 houses. After you bought your second home the prices took a nosedive and now each house costs $800k. That means you can buy 10 more houses with the remaining funds if yours ($8 mil).

That's the type of thinking an investor would have, not a trader. Traders like to buy and sell at all times, up or down, doesn't matter, they do not care. Investors like to buy and hold, if they trust what they are buying. This is why it's quite important to make sure that we are going to end up with something that will be profitable in the end.

I think long term holding is a lot more important and it is definitely profitable and should be considered as a good thing, but that doesn't mean that we have a right to tell people to hold. They will end up trading, selling AND buying which means that it could go down or up and doesn't really matter. I hope that it could get to a point where people could make some profit with it.

shushu9977

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First of all, I used many times stop loss to avoid the loss. It is useful for trader. But it is not always to use. I aso used it but now i do not use. If a trade have proper knowledge about the crypto market, then he/she will trade long or short invest without stop loss.

booktiger

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When trading with a trend, when the market makes a correction, you don’t have to use a stop loss, because the big players will try to throw you out of the market and it will be a shame to miss a good trade.
When trading against the trend, for example, intraday, a stop loss should be used as you never know when the market will continue its trend again.
Of course,trading with a trend doesn't guarantee success but reduces the risks.

mindrust

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Definitely not. If you are sure of the asset you are buying, why sell? You just need to buy more when it goes down. The more it falls, the more you buy. Actually in this case it is even better if the asset’s price is dropping because you can buy more for a cheaper price.

Let’s say you are in the real estate business and you have $10 million but no homes. Each house costs a million usd and you can buy 10 houses. After you bought your second home the prices took a nosedive and now each house costs $800k. That means you can buy 10 more houses with the remaining funds if yours ($8 mil).

Kelvinid

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Quote from: SamReomo on November 28, 2023, 05:14:12 PM

I have been into trading for many years but I have never used stop-loss myself because I believe that stop-losses won't help a trader to improve his/her trading abilities. The stop-losses are something that will protect a trader from losing a lot of money in a trade but if a trader doesn't conquer the fear then that's the worst thing I guess.

Some will find it useful while some are not, just like you. But it isn't doesn't matter especially if there is no issue/problem with/without using this strategy because what is important is that we make money and earn a profit in trading in many ways. In fact, not often use this one and I'd never find it necessary if we are active traders. Besides, this strategy never helps us to earn a profit but just helps us not to lose too much and still save some. If we can play the market well and have long trading experience, I believe it is not needed anymore. This just good for newbies, IMO.

tjtonmoy

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If it's for a beginner, then yes, I will obviously recommend Stop Loss. The fear of losing money in trade does not go away if you don't use Stop Loss. In my opinion, it's quite the opposite. Let me explain. The more you practice something, the better you get at it. Playing guitar for example. You put all your finger on the strings after you see it. Even after seeing the strings, you may miss 1 or 2. But as you practice more, you create a muscle memory. This helps you to play the guitar without even looking at the guitar itself. You can even play it in your head without the guitar itself.

We can say the same this with trading and SL. As a beginner, if you keep practising this, when you become good at it, you won't need to put SL anymore. Because you can just create a calculation in your head and open trade based on that. Also, using SL helps a lot in emotion control. As we all know, emotion control is a major thing when it comes to trading.

Yamane_Keto

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Part of controlling fear is knowing when to sell and when to accept a loss. This does not mean that you are weak or inexperienced, but on the contrary, you control your emotions more than a person who does not use a stop loss. The stop loss order is also good when you want to make a trade without having good knowledge of market trends or the trading volume is not large, so place the stop loss next to the support or loss points to reduce losses if the trend reverses.

knowngunman

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Quote from: SamReomo on November 28, 2023, 06:14:34 PM

I on the other hand do trade with high leverage but only on the coins like Bitcoin as they aren't going to move a lot as compare to the other shit-coins that are basically pumped and dumped. I don't really trade the shit-coins anymore as they are risky and I have faced huge losses when I traded those coins in past. Now, my main focus is on Bitcoin and a few other altcoins that aren't highly volatile as those useless shit-coins which exist for pumping and dumping.

Sometimes I use more than 20x leverage on Bitcoin but mostly I prefer to go with as high as 10x leverage. The 10x leverage on Bitcoin is far safer than 5x on any shit-coin that can move crazily. I know that the profits with Bitcoin trading pair aren't much as compare to others but the risk is minimum with Bitcoin trading.

You should have included this in your first post so it won't sound strange to anyone. Now, I see the reason why you are not too comfortable with using stop loss. Stop loss is just to help you manage your risk and nothing more. I personally will make use of it to minimize my risk because I can not just watch by while my balance liquidate if things goes wrong. It has less effect if you mainly trade bitcoin because you can not compare bitcoin trading to other coins in terms of volatility. The shitcoins have caused you huge losses but I can confidently say they also made you some profits before you decide not trade on them again. In fact, shitcoins are the best to trade with if you aim to make quick profit and also ready for the otherwise of it. Bitcoin offer less risk with lesser profit, each has its price and you can either take less risk to earn less or take higher risk to earn high.

lucifur

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I've been checking out this whole trading thing recently. I've decided to throw in a bit of cash in it just to see if I can get a hang of it. This stop loss feature does sounds pretty cool at first but from what I can tell, it seems like this stop loss thing is more for the people who've been trading for a while. Those folks who have spent time figuring out how the market moves and how to play their cards right. They know when to jump into a trade or bail out, so they'd know when it makes sense to use stop loss.

If you're new to trading I don't think that the stop loss is a good option. To use it effectively, you need to have a solid understanding of how the market works. If you're still getting the hang of things, using stop loss might end up doing more harm than good. There's a real risk that misusing it could lead to losing more money, instead of gaining.

Patrol69

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Using stop loss in trading may be a wrong decision, when I used to do futures trading I had little confidence in myself due to which I used stop loss after taking a trade. One thing I noticed about using stop loss is that if I put a stop loss at 10 dollars from the target price, maybe after the 10 dollar loss, my coins will be out of trade. The problem here is that after falling a bit below $10 the market goes back up and then we have nothing to do. Because our coin was already trading at a loss of $10, if we had been patient with some risk at that point without using a stop loss, the market would have gone up again and we could have reversed the loss. It's mainly because of this that I don't use stop loss now and it's probably a good decision for me.

ItsCrafty

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When I am doing a trade I never trust on market condition because any time it can dump because of so many fuds.its better to make sure a good stopl loss even if we are 100% positive about a trade.in this condition of trade your thinking money will be safe and you will have not fear of market condition.i am doing like that may be others are also thinking like that

lombok

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The use of stop loss depends on the decision of each trader. Personally I would use stop loss on futures trades only. There are several conditions where I don't use a stoploss when trading futures, when I only have 3 positions, and in long form, not short. Usually long positions have liq. wider price compared to short positions.

In the bullish market I went long without Stoploss 😅 Plus, if my analysis and confidence were 100 percent then I wouldn't place a take profit, I would just take profit manually.

mk4

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I think if you're 100% positive about a trade, you might be a bit too bullish and hence delusional. I think the most positive I was for a certain trade was like 80% and I thought I was being too unrealistic.

Yes, stop-losses are definitely not 100% necessary depending on the circumstances (especially when just going long-term long with lower leverage), but yea just my 2 sats.

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