HOW IMPORTANT IS STOP LOSS - page 7.

nurilham

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Quote from: Maslate on May 11, 2021, 09:12:47 AM

for those who wanted not to use this strategy, they better not trade when they don't have enough time to wait until the sell order will be filled.

Yes, better to avoid putting the coins on open order if they don't have enough time for trading. Or if they want, they can use the stop-loss feature.

Quote from: passwordnow on May 11, 2021, 01:30:03 PM

he's an investor, expect him that he's in the long term strategy.

True. As the investor, he or she must put a strategy for the long term. They won't plan to sell their coins in a short time. So, she or she doesn't need a stop-loss feature.

passwordnow

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Quote from: nurilham on May 10, 2021, 06:17:15 PM

Quote from: passwordnow on May 10, 2021, 01:53:48 AM

That's the purpose of stop loss. It is to stop any further losses that you cannot monitor if you're ever away from your PC or any trading device.

Yes. It is impossible to monitor 24 hours, the stop-loss feature really helps us to prevent big losses. If we don't use stop-loss, it will be very risky for our coins once they are still on open order but we are already not monitoring the coins. Mostly, the stop-loss feature is very helpful for traders, while for investors the stop-loss feature isn't really needed.

It is the sole purpose why it has been added to make our trading activities easier. Very much used for those who have been trading and sometimes away from their keyboard.
And for the investors, you're right that it's not needed because most of the investors don't have to monitor it from time to time because everyone who says that he's an investor, expect him that he's in the long term strategy.

Maslate

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Quote from: nurilham on May 10, 2021, 06:17:15 PM

Quote from: passwordnow on May 10, 2021, 01:53:48 AM

That's the purpose of stop loss. It is to stop any further losses that you cannot monitor if you're ever away from your PC or any trading device.

Yes. It is impossible to monitor 24 hours, the stop-loss feature really helps us to prevent big losses. If we don't use stop-loss, it will be very risky for our coins once they are still on open order but we are already not monitoring the coins. Mostly, the stop-loss feature is very helpful for traders, while for investors the stop-loss feature isn't really needed.

And for those who wanted not to use this strategy, they better not trade when they don't have enough time to wait until the sell order will be filled. Because the purpose of this is to help traders not to lose all of their money but if we analyze it carefully, we are still at the losing ends. Very unfortunate, but that is how the trading works, either to use this or not, you can't still avoid the chances of losing.

tbterryboy

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Quote from: wayaneka on May 10, 2021, 11:14:13 PM

Stop loss is important for trader to minimize the loss, but the problem is many trader doing trading activity on DEX that dont have feature of stop loss like in Uniswap and Pancake, so will be difficult to handle the high fluctuacion of the price.

First time I'm hearing about DEX are lagging this kind of important feature. It means they are allowing only spot trading like only buying and selling at a available prices alone possible in those DEXes? I'm seeing a lot of hype is going in favor of uniswap and pancake but unfortunately they are missing out a very important and basic feature of trading.

Quote from: wayaneka on May 10, 2021, 11:14:13 PM

For daily trading, i did it on CEX like on Binance and Huobi that provide feature of stop limit and OCO that we can use it for stop loss and trailing stop.

Limit order must the more important feature that we can make use in most of the reputed exchanges. I am also familiar and always going for trailing stoploss because after getting into profits, trailing stop loss is more important to protect our unrealized profits.

wayaneka

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Stop loss is important for trader to minimize the loss, but the problem is many trader doing trading activity on DEX that dont have feature of stop loss like in Uniswap and Pancake, so will be difficult to handle the high fluctuacion of the price. So to minimize the risk when i trade on those DEX, firstly i make analysis of the project by learn the fundamental of the project and do long term trading, like hold for 1-4 month. For daily trading, i did it on CEX like on Binance and Huobi that provide feature of stop limit and OCO that we can use it for stop loss and trailing stop.

nurilham

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Quote from: passwordnow on May 10, 2021, 01:53:48 AM

That's the purpose of stop loss. It is to stop any further losses that you cannot monitor if you're ever away from your PC or any trading device.

Yes. It is impossible to monitor 24 hours, the stop-loss feature really helps us to prevent big losses. If we don't use stop-loss, it will be very risky for our coins once they are still on open order but we are already not monitoring the coins. Mostly, the stop-loss feature is very helpful for traders, while for investors the stop-loss feature isn't really needed.

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Quote from: fahmimajannat on May 08, 2021, 12:16:56 PM

Stop loss is very important if you are investing a big amount.
You can set a stop loss at 10% loss so that if market crashes your whole asset don’t get vanished withing few days.
So its very important to set a stop loss.

It depends on the trader and the strategy that suits them. I know stop loss is always recommended for new traders but it becomes optional when the trader in question becomes experienced. They tend to figure out their own strategy and stop loss doesn't fit well into all traders strategy. I mean, I've seen some really good traders who instead of a stop loss, prefer to use DCA strategy to hold their position for much longer instead of cutting losses with a stop loss order. So it's dependent on the trader themselves.

Another point to note, stop loss shouldn't be based on some magic number percentage - say 5%, 3%, 10% etc. It should be placed at an area of value; likely below a support area that breaks.

2double0

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I was too like your friend as I have always traded without stop loss before. But later when I began trading futures, I understood that if I put stop loss below or above the liquidation point, it saves me so many dollars and if I put it near entry once my trade is in profit, chances of loss are nearly zero.

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Quote from: TheGreatPython on May 10, 2021, 07:04:51 AM

If you're waiting to exit your trades around the stoploss levels, then most probably you will never cut your loss but you will you leave your trades open which will result in big losses in the end because human emotions will never accept losses but always look for recovery of market.

Yeah, I have experienced that. You must make use of limit order options for your stoploss orders otherwise you will change your mind along with market fluctuations. Once your entry order are executing you must go for placing orders for both target and stoploss. These days most exchanges are offering us to place orders with limit functionality which will help you to place orders at both higher than market price and lower than market price.

Most traders are always preferring to have only target orders but they are delaying to place stoploss order for some reason. In my opinion they are somewhat confident about reaching target levels which may be the reason why they are not giving importance for having stoploss order.

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Quote from: mrongoz_imut on May 10, 2021, 01:52:44 PM

Quote from: TheGreatPython on May 10, 2021, 07:04:51 AM

Quote from: rosebrand on May 10, 2021, 03:22:27 AM

I think a day or short term trader who trades without stop loss must be there to watch his trades or else that person is really taking a risk which might cut him badly.

Yes, stop loss is must only for short-term based traders; I don't think it will be helpful even these type of traders will be continuously watching their trades and spending long hours in front of market screens because you cannot go for placing stoploss when market is against you and trading near the stoploss levels. You should always put well in advance so that it will get executed when it needs.

If you're waiting to exit your trades around the stoploss levels, then most probably you will never cut your loss but you will you leave your trades open which will result in big losses in the end because human emotions will never accept losses but always look for recovery of market.

I am short term trader but never use stop loss and keep waiting for tomorrow or next tomorrow will be my coin break to higher price again, better hold few days or weeks than have use stop loss feature, I think with stop loss we have ready loss our fund but can get chance later with other coin, but I most patience waiting price back to higher price.

Well I think it mostly depends on which margin you trade. If you go at x3 to x5 then it's okey not to use stop loss. But at x10 or bigger stop loss is needed in my opinion.

mrongoz_imut

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Quote from: TheGreatPython on May 10, 2021, 07:04:51 AM

Quote from: rosebrand on May 10, 2021, 03:22:27 AM

I think a day or short term trader who trades without stop loss must be there to watch his trades or else that person is really taking a risk which might cut him badly.

Yes, stop loss is must only for short-term based traders; I don't think it will be helpful even these type of traders will be continuously watching their trades and spending long hours in front of market screens because you cannot go for placing stoploss when market is against you and trading near the stoploss levels. You should always put well in advance so that it will get executed when it needs.

If you're waiting to exit your trades around the stoploss levels, then most probably you will never cut your loss but you will you leave your trades open which will result in big losses in the end because human emotions will never accept losses but always look for recovery of market.

I am short term trader but never use stop loss and keep waiting for tomorrow or next tomorrow will be my coin break to higher price again, better hold few days or weeks than have use stop loss feature, I think with stop loss we have ready loss our fund but can get chance later with other coin, but I most patience waiting price back to higher price.

TheGreatPython

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Quote from: rosebrand on May 10, 2021, 03:22:27 AM

I think a day or short term trader who trades without stop loss must be there to watch his trades or else that person is really taking a risk which might cut him badly.

Yes, stop loss is must only for short-term based traders; I don't think it will be helpful even these type of traders will be continuously watching their trades and spending long hours in front of market screens because you cannot go for placing stoploss when market is against you and trading near the stoploss levels. You should always put well in advance so that it will get executed when it needs.

If you're waiting to exit your trades around the stoploss levels, then most probably you will never cut your loss but you will you leave your trades open which will result in big losses in the end because human emotions will never accept losses but always look for recovery of market.

rosebrand

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Stop loss is really very essential for mostly day traders and for sure futures trade because it's way too risky and also stop loss could really be essential if you aren't there to watch the trades, stop loss would help you to cut your losses and take you out of the market when you aren't there to execute the trade so it helps you to reduce further losses when the market prices moves in the opposite direction. Well I think a day or short term trader who trades without stop loss must be there to watch his trades or else that person is really taking a risk which might cut him badly.

passwordnow

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Quote from: nurilham on May 08, 2021, 06:21:07 PM

If you are a daily trader or trading in the future, the stop-loss or cutloss feature is very important to limit the loss that we may spend. So far, many traders always analyze whether the coin drops in several rates or percentages, they will prefer to use or set a stop loss. This is used to only lose a small amount and then use the funds to buy coins again in order to take profit and close the loss.

That's the purpose of stop loss. It is to stop any further losses that you cannot monitor if you're ever away from your PC or any trading device. And stop loss isn't only common in trading cryptocurrencies but also in trading stocks.

Quote from: Tahsin Kabir Kollol on May 09, 2021, 06:33:16 AM

If you want to trade for a short time and you do not have any knowledge about long time market analyze then it is very important for you.

Much better to still practice trading if there's not enough knowledge about the market. Although with such features as stop loss, while the trader starts to learn, it will help to minimize the losses that might occur.

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Quote from: EiKaGlaShPriSAThWEl on May 09, 2021, 07:02:37 AM

Maybe it is not his style due to he believe in the coin he is holding. I also have a friend. He bought Doge at its ATH on third week on April. After ATH, dogecoin price falls and it becomes rank 8. My friend who is scalper hold his doge a little longer than the usual days he's holding a coin. Until this month of May comes plus before the Saturday night live it price continue to rise as well as from rank 8 to rank 4 (referring on coinmarketcap). If he used stop loss when it Doge fall after he bought, he may never gain the same benefit he had.

Well I understand that it works for doge in that situation, but if you believe in a coin you could still use stop loss and also go back in. So let's assume we are talking about dogecoin as well, the all time high is about 73 cents right?

Well, let's say you buy at 55 cents or so, put a stop loss at 50 cents, and when it reaches there, if you could go back in at 40-45 cents levels, just have a trail buy where you start buying more and more the higher it goes and end up buying it all back before it reaches 48 cents levels, you are still involved and profited from it as well, if it doesn't go up you are not bothered, so at that point you would be able to have an average purchasing at around 45-46 cents and sell at 73 cents instead. This is a valid strategy that you can use even if you believe in the coin going up you can use this one if you want stop loss.

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Quote from: Tahsin Kabir Kollol on May 09, 2021, 06:33:16 AM

A Stop-loss strategy is most effective when the market is volatile and downtrend. The importance of stop-loss totally depends on your trading strategy and market analysis skill. However stop-loss is an important feature for all traders.

Stoploss is important in downmarket if you're trading in spot but it is important in both up and down markets if you are trading in leveraged market. I mean the importance of stoploss is not related to the trend of the market.

I agree your trading strategy is highly related to your stoploss; for example if you're into long-term holding then you never need to go for stoploss; it means whenever you are good in fundamental analysis and you are investing based on fundamental things then you never need to worry about having stoploss.

Stoploss is a good feature to save both time and money at the same time we need to use it effectively otherwise sometimes it will lead to big regrets.

EiKaGlaShPriSAThWEl

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Quote from: MUG1WARA on April 29, 2021, 05:29:35 AM

In my opinion stop loss is very important when trading, cause it helps us to avoid getting liquidated, in cases where a flash drop in the market happens due to how volatile the crypto market is, stop loss helps us to close our position before we get liqiudated, but if your friend doesn't see the importance of using it, then just let him be maybe that's not his style of trading cause whether you like it or not everyone has their own style of trading so he probably loves trading without any stop-loss set.

Maybe it is not his style due to he believe in the coin he is holding. I also have a friend. He bought Doge at its ATH on third week on April. After ATH, dogecoin price falls and it becomes rank 8. My friend who is scalper hold his doge a little longer than the usual days he's holding a coin. Until this month of May comes plus before the Saturday night live it price continue to rise as well as from rank 8 to rank 4 (referring on coinmarketcap). If he used stop loss when it Doge fall after he bought, he may never gain the same benefit he had.

Tahsin Kabir Kollol

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Stop-loss strategy important depends on your trading features and market situation. If you want to trade for a short time and you do not have any knowledge about long time market analyze then it is very important for you. A Stop-loss strategy is most effective when the market is volatile and downtrend. The importance of stop-loss totally depends on your trading strategy and market analysis skill. However stop-loss is an important feature for all traders.

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

He seems adamant and I decided to leave him maybe he will learn from his own mistake if it happens.

Certainly, he will surely learn it the hard way. That's if he hadn't already tasted the sour grapes given the timeline of this post and the OP's. Traders who have the mindset of always winning are those who feel it's an aberration to record a loss and they tend to jettison the idea of using a SL. Often, these traders are ruined. Let me speak from the experience of a FX Trader. No matter how small a lot size one wants to use to avoid using a SL one will soon discover the hard reality of either a trade running for a long time without making profit or account getting burnt eventually. It's best to use SL while trading as it gives traders peace of mind. Yes, quiet alright SL may be hit but that's part of what trading is also about, isn't it? A trader who doesn't want to record a loss will eventually end up a loser.

nurilham

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If you are a daily trader or trading in the future, the stop-loss or cutloss feature is very important to limit the loss that we may spend. So far, many traders always analyze whether the coin drops in several rates or percentages, they will prefer to use or set a stop loss. This is used to only lose a small amount and then use the funds to buy coins again in order to take profit and close the loss.

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