HOW IMPORTANT IS STOP LOSS - page 4.

DibiaVxosis

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Quote from: doctor877 on April 25, 2021, 01:47:59 AM

Got in a discussion with a friend that recently started learning Technical Analysis and then he said he trades without using stop Loss. I told him no good trader trades without stop Loss. I tried to explain to him about the volatility and how trades can go against you especially as a new newbie and you can lose heavily. He seems adamant and I decided to leave him maybe he will learn from his own mistake if it happens. It seems there are also many traders that trade without stop Loss and I wonder how they do it conveniently.

Please share your views on how important stop Loss is and how convenient it can be to trade without stop Loss.

Talking from experience I can tell you using stop loss is as good as saving your funds, no matter the knowledge of technical analysis trading without stop loss can get you fucked up, technical analysis tells us action that has been taken already, there could be a sharp news which might push prices down after you have analysed and set up your trade and if this happens in your absence surely you gonna get liquidated.

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Quote from: Cherylstar86 on July 26, 2021, 04:38:15 PM

Stop-losses are essential for risk management. Traders can calculate what position size to take and how much money to risk in a single trade. Stop loss is very important of course for traders but it is very peculiar and very risky technique.

Very essential, when you're relying on day-to-day trading activity, you need to close your position every time you see that there's nothing happen yet you keep on incurring losses. Stop-loss isn't seemed to be a risky technique for me but it's a way to stop further loss and you've got to do it, there's no risk involved in it yet it's a solution whenever you see that your trades aren't following what you've planned for. It's the best strategy for those who don't want to see their positions being eaten by the market and they'll only get lost. The wise traders won't feel bad if they stop-loss between 5%-10% of loss as they do this strategy.

Cherylstar86

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Quote from: emmybd on July 26, 2021, 10:38:20 AM

A stop-loss order is an order entrusted with a broker to purchase or sell out when a store attains a particular value. A stop-loss is blueprinted to prohibit investor losses in a protected circumstance. Installing a stop-loss order for 10% below the stock we bought will prohibit the loss by 10%. The convenience of a stop-loss order is that we do not have to keep an eye on how the stock acts every day. This prominence is especially efficient when we are on respite or in circumstances that confine us from beholding our stocks for extended periods of time. The drawback is that a short-term fluctuation in the stock value may facilitate the stop price.

Though similar to that. A stop-loss order works by automatically closing a crypto position when the price hits a pre-determined level. Stop-losses are essential for risk management. Traders can calculate what position size to take and how much money to risk in a single trade. Stop loss is very important of course for traders but it is very peculiar and very risky technique.

emmybd

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A stop-loss order is an order entrusted with a broker to purchase or sell out when a store attains a particular value. A stop-loss is blueprinted to prohibit investor losses in a protected circumstance. Installing a stop-loss order for 10% below the stock we bought will prohibit the loss by 10%. The convenience of a stop-loss order is that we do not have to keep an eye on how the stock acts every day. This prominence is especially efficient when we are on respite or in circumstances that confine us from beholding our stocks for extended periods of time. The drawback is that a short-term fluctuation in the stock value may facilitate the stop price.

Karish2return

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As we know that a stop-loss is outlined to restrain an investor's loss on a security position that produces an unfavorable move. One key advantage of employing a stop-loss arrange is you do not got to screen your property day by day. A drawback is that a short-term cost change may actuate the halt and trigger an superfluous deal.

Caldear

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When the stop loss is lower than the investment cost, it must be cut out in time. During the investment process, if you find that you have made a mistake in the subjective judgment of the investment target and your own operation deviates from the market trend, you must immediately stop the loss. Stop loss plays an important role in risk management. Learning to stop loss is also very important in trading and investment. Stop loss in time can effectively control and reduce risks.

Roy Asher

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In the cryptocurrency market, most investors will have panic and greed for their own interests, especially the latter, which makes them profitable and slowly turns into losses. Due to the instability of the cryptocurrency market, once it is below my stop loss level, I will directly reduce my position and sell without hesitation. This is to minimize losses, not to mention being blind, without independent opinions, and without the ability to judge. It is a very dangerous thing. Although it is difficult to stop loss, it is actually the most reasonable approach.

Rajamuda

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In my opinion in essence.. apart from learning many things in terms of trading, we really have to be able to control ourselves/control our emotions and sometimes we are too ambitious to be something not good in trading.
the term stop loss is very important of course and if not.. it's like playing too risky that can make fail.

LUCKMCFLY

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Well yes, although the only option I see is, if the price goes down and we don't have a stop loss, we would have to wait as long as necessary until the price goes up to recover and if it goes up even more we could get more profit, but those movements They usually happen very slowly, it can even last up to 1 year, however there are many who enter a position with the opposite leveraged, that is, if you enter LONG, another order is placed short and leveraged at the same time in case it goes away the market against, a very peculiar and very risky technique.

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Quote from: dmamigo on June 23, 2021, 05:23:44 AM

Newbies or learners like me obviously require to use the stop loss feature while trading in order to prevent losing more than we can afford at the early stage. I think it is important because personally, it was affecting me psychologically as I was losing more and this made me stop trading for a few weeks.

Stop loss is very important to traders.

For HODLERS, you don't mind about stop loss because you don't do day trading.

But for traders, it's a must if they convey their profits from day to day living. If they've got a 1%-5% stop loss, that won't hurt them and they can win more with their next trades.

dmamigo

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Newbies or learners like me obviously require to use the stop loss feature while trading in order to prevent losing more than we can afford at the early stage. I think it is important because personally, it was affecting me psychologically as I was losing more and this made me stop trading for a few weeks.

Cryptoababe

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I dont set stop loss When i trade with very low leverage and most time, i don't over trade.
But stop loss is very important for a very good trader when you notice that the market is going wrong and passed more than expected support or resistance level.

ahoenk

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Stop loss important to daily trader. Or people who enter matket with more then 30% of his portofolio so he can buy back when the matket down. If you enter the market especialy for Bitcoin just buy 10% of all your saving then do DCA.

I never use stop lose when i trade in crypto market, the reason is " Crypto market is too volatile ".

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Quote from: zanezane on June 19, 2021, 12:02:33 AM

It's important like your life because it's in the name already, it stops you from losing although you are still on the loss if this activates but the worst has already come for you because the purpose of stop loss is to help you prevent a really big loss, kind of like you are bleeding and then you put a pressure on that bleeding and the bleeding stops.

Right, it prevents loss but it also ends any possible recovery that might have happened if you didn't force a stop loss in the situation. The crypto market is volatile and stop-loss although important doesn't always work in your favor because the market will move and will trigger stop loss and then the market will move back to the original price.

I think stop-loss is important if you are trading coins you never analyzed and purchased only in hope or hype. If there is a coin you analyzed and bought then don't really see the need of using stop-loss because the coin should recover its value with time.

Quote from: SaveOurSea on June 19, 2021, 04:26:15 PM

Stop lose = save Lives, yes this is my opinion about stop lose, because if you know the importance of stop lose then you will always apply it, because in crypto trading, stop lose is used so you don't lose a lot, and don't lose capital, stop lose of course not only in crypto, but in Forex and stocks, stop losing is also important, so, if you trade then use a stop loss

Not that I don't agree but sometimes patience can be rewarded, recently when BTC dropped everyone who had a stop-loss set would lose some amount but those who didn't can still hold tight and let the market recover.

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Quote from: SaveOurSea on June 19, 2021, 04:26:15 PM

Stop lose = save Lives, yes this is my opinion about stop lose, because if you know the importance of stop lose then you will always apply it,
because in crypto trading,

It's a feature that will definitely save you whenever the market goes a downtrend as quick as it is.

Quote from: SaveOurSea on June 19, 2021, 04:26:15 PM

stop lose is used so you don't lose a lot, and don't lose capital, stop lose of course not only in crypto,
but in Forex and stocks, stop losing is also important, so, if you trade then use a stop loss

That is in every market so that it can help every trader to save themselves whenever a sudden correction has happened. And even if you're sleeping, you can stop your losses.

SaveOurSea

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Stop lose = save Lives, yes this is my opinion about stop lose, because if you know the importance of stop lose then you will always apply it,
because in crypto trading, stop lose is used so you don't lose a lot, and don't lose capital, stop lose of course not only in crypto,
but in Forex and stocks, stop losing is also important, so, if you trade then use a stop loss

viananda2525

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Quote from: Freeveto on June 16, 2021, 04:58:44 PM

I will say that trading with stop loss is good to an extent and not often good because I have tried both of them.
Good when your analysis are wrong, it will save you from blowing your entire account. While not often good in some cases where it stops you out and still continue in same direction.

its should be a problem when your position stopped and market still continue parallel with your position. we never know its just trapped or not, as a traders we must accept this think which is already planned before. when our position stopped , we must re-analize market and make sure we could to avoid making same mistake.

zanezane

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It's important like your life because it's in the name already, it stops you from losing although you are still on the loss if this activates but the worst has already come for you because the purpose of stop loss is to help you prevent a really big loss, kind of like you are bleeding and then you put a pressure on that bleeding and the bleeding stops.

Xinarae*

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Stop loss is very important to avoid risk when a trader has a lot of risk for trading and is not able to understand anything about the market properly. Trading stop loss order helps us to trade in the stock market with discipline it is a kind of stop loss order that helps to combine both risk management and trading management. This is one of the most difficult decisions traders can make when deciding on a profit and when to reduce a loss stop loss on the other hand is a good decision to protect your own funds.

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Quote from: LUCKMCFLY on June 18, 2021, 04:16:06 PM

Quote from: Eureka_07 on June 14, 2021, 12:37:36 PM

If a trader wanted to limit his losses to a trade or position, stop loss is very important. The trader should just have to accept its cons such as it is still possible for the market to go up after you stop loss, this on the other hand, makes you not lose all of your funds.

I agree, in fact, in these moments that have been very full of total uncertainty, the loss of stop is the best lifeguard that can be used, in fact, it is the safest way to do trade, because in case of market is in our favor, what should be done is to move the stop loss to follow the management of the profits, otherwise, if it reaches the loss of stop, what should be done is to assume the loss, the loss of the stop It is essential in these times and operations with the use of stop loss, it is the most intelligent to enter the market, I believe that when there is uncertainty in the market is ideal for the mandatory use of stop loss.

Maybe we can say is that it saves us from losing it big but since it was stop-loss, means that we are still losing in a few bucks. I know it was a helping strategy for a trader but I suggest if there is a way not to use it, much better. That is why TA's is very important, this could help us to avoid using a stop-loss strategy, I didn't push myself to put in trade if the situation is not good. Maybe we have to wait until the moment is in a favorable situation.

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