HOW IMPORTANT IS STOP LOSS - page 9.

TheGreatPython

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Quote from: bitgolden on April 29, 2021, 08:04:06 AM

We do not need stoploss for bitcoin spot trading when overall bitcoin trend is bullish.
If you're trading any other coin against bitcoin, then probably you need stoploss even in spot trading.

Yes, long term holders of bitcoin are holding (literally long term trading) without stop loss. But, at the same time. I guess they must be having trailing stop loss in mind like if you have bought bitcoins for $50k levels and you might have stoploss levels around $51k levels in mind still you will not bother anything when bitcoin is trading above $55k levels. But, if bitcoin prices are coming down to $52k levels then you will start thinking about exiting with least profits.

I am just explaining how stoploss can be used even in spot and long term trading. But, I must agree that bitcoin spot trading definitely not requiring any stoploss to exit as you can hold bitcoins for years.

bitgolden

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Quote from: xSkylarx on April 29, 2021, 07:00:14 AM

It is very important because some people get liquidated because they don't set it. Just like what happened a week ago when bitcoin made a flash crash from 56k to 50k in less than 15 minutes. Many people think that their liquidation price is too far that it is impossible to hit and when this flash crash happened it liquidated almost $2b from what I read.

From these kinds of scenarios, I come to a conclusion that for bitcoin trading stoploss is inevitable if you are trading with leverage and if you're trading on spot markets then you can simply hold without stoploss as bitcoin is known for bouncing back these days.

Overall we can summarize observations like this:
We do not need stoploss for bitcoin spot trading when overall bitcoin trend is bullish.
If you're trading any other coin against bitcoin, then probably you need stoploss even in spot trading.

Issa56

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From the little experience am having I believe stop lose is very important in trading In trading after buying a coin make sure you set stop lose to avoid lose of fund nobody can predict what will happen after buying buying a coin and is better to lose 5% of your fund than to lose 50% of your fund. Some people believe that stop lose is just a total waste of money but to be honest stop lose is very important in trading am speaking from experience last year when bitcoin was about to dump I bought sxp coin on binance around $3.5 when the coin dump my stop lose was triggered and I was monitoring the coin the coin dump to $0.7 and I bought back the coin and currently sxp is around $4 stop lose really help me to buy back the coin when the price was very low.

xSkylarx

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From the word itself, it prevents you to have more loss when your trade doesn't go the way you predicted it. It is very important because some people get liquidated because they don't set it. Just like what happened a week ago when bitcoin made a flash crash from 56k to 50k in less than 15 minutes. Many people think that their liquidation price is too far that it is impossible to hit and when this flash crash happened it liquidated almost $2b from what I read.

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

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

You mean under the circumstance of margin trading?
Yes, getting liquidated might get you big losses whereas you can exit with small losses if you're having stoploss level. Moreover you must have stoploss level at the trend reversal point so that it will be serving the exact purposes.

Because, just to prevent getting liquidated, if you put stoploss at random price level then if market comes back but you may not get same level of position because of less capital right now you are having of the stoploss hit. So, your stoploss level should be derived from same technical analysis.

MUG1WARA

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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.

tygeade

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Quote from: numanoid on April 29, 2021, 12:58:43 AM

You know, people who using stop loss is for those who aren't certain what they invest. If people have research anything about their investment before, once they buy the coin/invested, they never will use stop loss. Instead use stop loss, they will keep re-buy/buy the dip because they knows well what they invested.

In my understanding, you do not need stoploss for your investments but your trading must need.
There are a lot of differences between trading and investment. For investments you need to go for fundamental things whereas for trading you just need on that particular day's technical things so that you could get into profits or cut your losses earlier. It means only technical analysis may give you stoploss levels and not the fundamental things.

The new perspective of using stop-loss levels is, not only to cut your losses earlier but to save your time as well. I am personally never entering any trade without stoploss levels.

numanoid

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You know, people who using stop loss is for those who aren't certain what they invest. If people have research anything about their investment before, once they buy the coin/invested, they never will use stop loss. Instead use stop loss, they will keep re-buy/buy the dip because they knows well what they invested.

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Quote from: JooBra on April 28, 2021, 01:35:55 PM

Quote from: thecryptogandalf on April 28, 2021, 10:54:10 AM

When I first started trading, I run just backtest and papertrade for months and one of the most significant things that I realized was what happens when you use stop-loss and what happens when you don't. Stop-loss is extremely significant in my opinion. It is a safety net.

Stop loss is a must. Everyone who thinks to take trading seriously needs to learn to use it right. Also having profit margins and stop loss margins is what is most important. Sometimes waiting to long can make all profit to get lost.

Stop loss will prevent you from missing the opportunity to sell at a minima loss, so I don’t see any reason why traders will not set-up their stop loss level, well in fact this can be a big help.

Trading is too risky, I don’t want to lose everything in instant and that’s why I always set-up my stop loss limit just to make sure I’m on the right track. So far, I didn’t hit any stop loss because I always take profit every time I see the opportunity.

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Quote from: justdimin on April 28, 2021, 03:17:18 PM

Moreover, stoploss is good because it is helping to save time. I am seeing some people who are ignoring on making use of stoploss because they are always confident about bouncing back of market to get them profits but they are enforced to wait for more time. But for the people who exit at stoploss will do other trades and then make profits in comparatively quick time.

Yeah, that is another perspective of using stoploss; so far traders do suggest stoploss for cutting losses early but now as per your point, it seems we need to make use of stoploss to cut down the waiting time. I agree that I have traded many times without stoploss and kept waiting for days to week for market to return. Sometimes I got chances to exit for no losses if I do not consider my waiting time with locked capital.

If I have exit at stoploss and tried another trade on next day itself then I might have saved time and might have got chances to make bigger profits as well.

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Quote from: JooBra on April 28, 2021, 01:35:55 PM

Everyone who thinks to take trading seriously needs to learn to use it right. Also having profit margins and stop loss margins is what is most important. Sometimes waiting to long can make all profit to get lost.

You mean we need to have proper exit point regardless of it will be a positive or negative run of our position in trading? That sounds reasonable. Because I have experienced losses after waiting for more profits. Hence having proper target level also will help very much similar to how stoploss is helping in preventing losses.

Moreover, stoploss is good because it is helping to save time. I am seeing some people who are ignoring on making use of stoploss because they are always confident about bouncing back of market to get them profits but they are enforced to wait for more time. But for the people who exit at stoploss will do other trades and then make profits in comparatively quick time.

JooBra

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Quote from: thecryptogandalf on April 28, 2021, 10:54:10 AM

When I first started trading, I run just backtest and papertrade for months and one of the most significant things that I realized was what happens when you use stop-loss and what happens when you don't. Stop-loss is extremely significant in my opinion. It is a safety net.

Stop loss is a must. Everyone who thinks to take trading seriously needs to learn to use it right. Also having profit margins and stop loss margins is what is most important. Sometimes waiting to long can make all profit to get lost.

thecryptogandalf

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When I first started trading, I run just backtest and papertrade for months and one of the most significant things that I realized was what happens when you use stop-loss and what happens when you don't. Stop-loss is extremely significant in my opinion. It is a safety net.

Lorokan

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For every important feature, there is a disadvantage and this also applies to STOP LOSS; stop loss feature is supposed to help traders maintain a low % loss profile on their trades most of the times and it helps saves capital; but on the other hand, some trades do cross the SL before going on to hit TP; which means that the trader has missed out on a potential profit because of the stop loss functions. Its a 2 way thing; a trader should do whatever suits them

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

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.

I guess for trading bitcoins, you do not need any stop loss. Yeah only for bitcoin trading and not for any altcoin trading.

When you trade bitcoin in spot markets and when you have confident on the futures of bitcoins then you may go trading without worrying on stop-loss levels. For some traders, stop-loss is giving extra pressure so they may feel comfortable when trading without stop-loss.

Moreover, long term holding is a stoploss-less way of trading in long term Grin

.

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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.

I think your friend is a very brave person who is ready to lose all his capital in a single trade. Using stop loss is one of the safest thing you could employ to help reduce the risk of losing.
I've been trading for a while now and I can tell you I've been able to save myself from blowing all my capital because I never forget to employ the use of stoploss.
Maybe your friend is so good that he's always accurate with his trades and that have gotten into his head that he no longer set stop loss, I believe there will always be that trade that will go the wrong way and only stop-loss would be able to save him and he won't have used it in the trade and he'll lose all

MrcMrc

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Stop lose is what every regular and passive trader will go for but to some other traders if their capital is in a stable coin such as Bitcoin will not border to use stop loose,

I started trading 2 years ago and at the early stage I know nothing about stop loss but I was lucky I made some profits.

Yatsan

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It seems like your friend is going far beyomd doing things to work by his own and would like to learn things freely. Having stop loss is very important for us traders to somehow do manage our funds not to get into deep loss. But it seems that the friend of yours is still not into realizing how risky it would cost him to trade freely having no stop loss. It will look like a gamble having no stop loss added by the fact if you were just a newbie in trading. It will put you into frustration and deep loss keep going into banging against the market pushing your funds into the full limit. Stop loss is important to keep an eye of your funds not to be totally wiped out in an instant. Ignoring such will cost you to gain loss rather than profit. It will not always worthy to take risks because you somehow need to assess and strategize to last long specially in trading.

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Quote from: Ararbermas on April 27, 2021, 03:10:04 AM

Stop loss is very important actually for a traders when trading a coin especially if its so volatile. But perhaps mostly full time traders is the one who don't really want to use such stuff, wherien it's because of their own style when it comes to such things in my opinion . What i mean they are really confident without using stop loss because they are in it all the time to protect their profits. And for me usually only those who don't have enough time when trading using stop loss nowadays..

Full-time or part-time traders, most of them have to do a stop loss process, if you see some traders who are overconfident and don't set things up early enough, they are sure to lose more because market value jumps very quickly and momentarily, observing and processing after everything has started will be too late, we need to calculate everything in advance. That is the most important point of the stop loss, need the parameters and assertiveness to execute, the delay and the lengthening of the action will make the situation out of control

AicecreaME

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Stop loss is a temporary greed blocker, which can indeed save you from losing more money in your trading platform wallet. I, myself doesn't use it all the time if I have time to monitor every trade that I entered, I only use it if I'm gonna sleep already or if I'm gonna do something else other than trading. Others use it because they have too many trades too look at so using "stop loss" is really helpful for those kind of Traders, especially in day trading.

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