Is Using a Stop loss "Good" or "Bad" - page 6.

wxa7115

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Quote from: Woodie on April 11, 2022, 06:16:33 AM

I have traded and analyzed several charts and I have come to a conclusion that trading with a stop loss is the easiest way to lose money and not a safety net because if your analysis is correct what happens most of the times is markets go for the stop losses which takes you out of the market and price turns to your predicted direction after the stop hunt which many consider as market manipulations.

So is using a stop loss good or bad?

Do we have traders that trade without them, if yes what's your win ratio using this strategy?

If your strategy benefits from not using a stop loss then I am not going to question you as each strategy is different and you may not like the idea to reveal it to the members of the forum.

However in the overwhelming majority of the cases a stop loss is a good thing and people need to use it, otherwise the losses they will incur will be massive, now it is true that a stop loss that is too tight may cause problems but this can easily be fixed by increasing the range of the stop loss while reducing the size of your position.

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Quote from: Woodie on April 11, 2022, 06:16:33 AM

I have traded and analyzed several charts and I have come to a conclusion that trading with a stop loss is the easiest way to lose money and not a safety net because if your analysis is correct what happens most of the times is markets go for the stop losses which takes you out of the market and price turns to your predicted direction after the stop hunt which many consider as market manipulations.

So is using a stop loss good or bad?

Do we have traders that trade without them, if yes what's your win ratio using this strategy?

using a stop loss I think is very good where we can stop losses and return to trading for other coins but how to use it must be considered because we don't always have to stop loss for potential coins.

Hypnosis00

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Quote from: nur rochid on April 15, 2022, 11:55:57 PM

sometimes everyone doesn't like using stop losses, because many of them don't want the stop loss to be picked up and the price to go up again.

That be unreasonable. Traders had used this strategy to protect from losing much which is found to be effective in knowing the volatility of the market and abrupt changes in trend.

Quote

but there are some of them who use cutloss as a substitute, so they must often check the closing price that occurs, if the closing price has broken support then they immediately exit the market manually. I think to use it depends on our convenience, the important thing is that we know how to use it properly

Absolutely, the trader has their choice. Perhaps they choose to use a stop-loss strategy as they understand it and know how/when to apply it. But those who can't and feel they just losing more, certainly can't appreciate it.

adaseb

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One advise I can give if you want to use stops. You need to learn to put it in a good place. What most newbies do is they put the stop loss either at a round number like $41000 or $40000 or $39000. Or what they do is they put it near a pivot low or high OR at the daily low or high.

This is a horrible way of using a stop loss because those areas typically get run. Its very obvious many traders using the daily low or high. That's why alot of times there are failed breakouts and then the reversal. This is due to stop losses getting run.

You either need to put it in a random spot or before the daily low or high. That way you don't deal with slippage at least.

nur rochid

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sometimes everyone doesn't like using stop losses, because many of them don't want the stop loss to be picked up and the price to go up again. but there are some of them who use cutloss as a substitute, so they must often check the closing price that occurs, if the closing price has broken support then they immediately exit the market manually. I think to use it depends on our convenience, the important thing is that we know how to use it properly

NewRanger

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Quote from: adaseb on April 13, 2022, 10:18:15 PM

When people first start to trade they never use stops because they have no idea what they are. After losing some money and discovering such an option they finally decide to use it.

maybe they were over confidence with their analisys so pratically want to one shoot and earn huge profits. the fact its very rare to find traders that able to survive with this strategy, without money management only in one or two position we will easily liquidate.

Quote from: AicecreaME on April 14, 2022, 06:25:24 AM

Using a stop loss is good for those who have only small amount of capital, but doesn't need if you have too much money on your wallet that can withstand early liquidation.

even huge balance traders need to use stop loss, we will never know how volatile go on . maybe we use 2% each if we use stop loss, but while we open it sometime our negative position could be more of that. the rest still can used to open other position that maybe gain profits.

Rengga Jati

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Quote from: Woodie on April 11, 2022, 06:16:33 AM

So is using a stop loss good or bad?

The use of Stop-loss will depend on who we are and what kind of strategy we are using. Some people may not use any Stop Loss moreover if we are not day traders. Or if we are a holder or investors, or long-term holders. It will be okay to ut our assets on our Spot market in order to wait for the price rising up at a certain price.

However, if we are day traders, using Stop loss is very helpful in order to manage our funds due to the high volatility of the cryptocurrency market.
However, it needs wise management and decision when we are using the Stop Loss. We must also know the right time and indicator about when we should use or implement Stop Loss, in what rate and how far from our bought price.

I read an article and this is very interesting here:
https://www.thebalance.com/where-to-place-a-stop-loss-order-when-trading-1030867
https://www.thetimes.co.uk/money-mentor/article/crypto-tips-mistakes/

AicecreaME

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Quote from: Woodie on April 11, 2022, 06:16:33 AM

I have traded and analyzed several charts and I have come to a conclusion that trading with a stop loss is the easiest way to lose money and not a safety net because if your analysis is correct what happens most of the times is markets go for the stop losses which takes you out of the market and price turns to your predicted direction after the stop hunt which many consider as market manipulations.

So is using a stop loss good or bad?

Do we have traders that trade without them, if yes what's your win ratio using this strategy?

Using a stop loss is good for those who have only small amount of capital, but doesn't need if you have too much money on your wallet that can withstand early liquidation. Mostly traders who put stop loss are those scalpers, and those who enter a trade and leave for his job. Using a stop loss is a choice, maybe it's not good for you but it's good for someone out there, including me. It's easier to re-enter another trade than to watch your trade bleeding out red.

palle11

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Quote from: fauzan Ichsan on April 14, 2022, 03:24:33 AM

indeed, our stop loss is often picked up and the price returns to the prediction direction. therefore it is better to place a stop loss in an unreadable area

This is what makes stop loss complicated because it hunts you and go back to continue the move. When you adjust stop loss to a higher range is also dangerous because if the stop loss is hit, you will lose a large percentage of your capital and may lose courage to continue the market with what is left of it. But the important thing is to use stop loss but not to draw it very far from the market or too close to it and to analyse very well before making the order.

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Quote from: Woodie on April 11, 2022, 06:16:33 AM

I have traded and analyzed several charts and I have come to a conclusion that trading with a stop loss is the easiest way to lose money and not a safety net because if your analysis is correct what happens most of the times is markets go for the stop losses which takes you out of the market and price turns to your predicted direction after the stop hunt which many consider as market manipulations.

So is using a stop loss good or bad?

Do we have traders that trade without them, if yes what's your win ratio using this strategy?

Some people do say that it depends on your settings, sometimes it’s best to set it to a lower price so that when the market goes negative for a bit it doesn’t trigger the stop loss except when it goes further. Everyone knows how it would work best for them in this case.

I think stop loss is mainly for when you are not going to be there for a long time and you think that the market would go way too low, so you can implement that to save you from too much loss. Although another thing you have to know is that a stop loss can fail, because it only triggers a sale, but it doesn’t guarantee that your asset is sold at a particular rate.

Odusko

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Stop loss is just a tool in the hands of the trader by the exchange to be used when you see it as a necessity because when I chose to activate my stop loss is when I want to go away from trading science for a long time so I will set my portfolio on stop lose so my coins get converted automatically when the price reaches a certain level.

fauzan Ichsan

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I think the use of stoploss is good for those who are afraid of not being able to monitor the market continuously. What needs to be considered is that the stop loss placement should not be too close to the running price, we must provide room for movement so that the market can react freely. indeed, our stop loss is often picked up and the price returns to the prediction direction. therefore it is better to place a stop loss in an unreadable area

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Quote from: Xxmodded on April 13, 2022, 11:07:02 PM

Quote from: adaseb on April 13, 2022, 10:18:15 PM

When people first start to trade they never use stops because they have no idea what they are. After losing some money and discovering such an option they finally decide to use it.

However they find that wherever they put their stop, the market goes to that stop and ends up reversing after. So they stop using stop losses again.

Then there is one day when their position loses >20% in a single day and they didn’t get out, they finally realize that using stops was better then not using them at all.

Almost trader have the on their mind like that, first time when losing about 10% until 20% not use stop loss but when getting loss almost 30% until 50% try with cut loss and looks very bad thing. Better loss 10% by using stop loss than have loss almost 40% when try to cut loss, if still have several percent loss we can recovery and buy back some coin on lower price than got profit for closing with how much loss before from stop loss. I have adopt this way when my assets drop 20% I use stop loss and take recovery with buy back on lower price again.

You should always put stop loss in futures trades but there is difference of opinion when it comes to spot trading.
I usually do not put stoploss in spot trades as I prefer to hold the coin rather than my orders hitting on stoploss and trade closing in loss. However you can only avoid stoploss in spot, if the overall market conditions are bullish.

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Quote from: adaseb on April 13, 2022, 10:18:15 PM

When people first start to trade they never use stops because they have no idea what they are. After losing some money and discovering such an option they finally decide to use it.

However they find that wherever they put their stop, the market goes to that stop and ends up reversing after. So they stop using stop losses again.

Then there is one day when their position loses >20% in a single day and they didn’t get out, they finally realize that using stops was better then not using them at all.

Almost trader have the on their mind like that, first time when losing about 10% until 20% not use stop loss but when getting loss almost 30% until 50% try with cut loss and looks very bad thing. Better loss 10% by using stop loss than have loss almost 40% when try to cut loss, if still have several percent loss we can recovery and buy back some coin on lower price than got profit for closing with how much loss before from stop loss. I have adopt this way when my assets drop 20% I use stop loss and take recovery with buy back on lower price again.

adaseb

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When people first start to trade they never use stops because they have no idea what they are. After losing some money and discovering such an option they finally decide to use it.

However they find that wherever they put their stop, the market goes to that stop and ends up reversing after. So they stop using stop losses again.

Then there is one day when their position loses >20% in a single day and they didn’t get out, they finally realize that using stops was better then not using them at all.

Pandu Geddon

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in spot trading, I think it is mandatory to use the SL feature. this avoids us from deeper losses if the price corrects quite a lot. unless you buy it to keep it for the time you have planned. you can not use this feature.
most importantly you can analyze the price you set to sell and apply SL. as most traders regret when using SL, the price of the coin being traded again makes a pump. and that makes a regret.

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Quote from: Issa56 on April 12, 2022, 04:10:53 PM

I can't really say using stop lose is a good idea and Is not also a bad idea, but the only thing I will say is that is really a good idea for newbie that's just starting to trade cryptocurrency to use stop lose, so that you can cut your lost and also as a professional I can't say is a bad idea or a good idea, it depends on each trader's strategy or perspective. To me stop lose is not really a bad idea but it those not favors always.

Yes you are absolutely right because only those who have not enough knowledge and experience about cryptocurrencies trading, he/ she may use stop loss. It always very good idea for a newbie traders. But experienced traders always analysis the market carefully during his trading.

Rigon

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Trading Platform Stop Loss is a good thing for those who understand it clearly. Those of us who trade on trading platforms especially in futures trading must have a stop profit loss It is very important to use.And for those who do not understand stop loss, the matter is very complicated. Of course it is better if they understand this well.

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Quote from: 24Kt on April 11, 2022, 05:07:47 PM

Quote from: Natalim on April 11, 2022, 04:59:18 PM

The stop-loss strategy has been used for our benefit.
It helps to cut you down from losing more and this become useful during the bear season. Thus, if you are in trading, you can really appreciate its importance, in fact, the majority of the traders had used this for the said reason.

It is GOOD or BAD? Depends on what is your purpose for using this but for me, it was a useful strategy.

I haven't used this strategy up until now as I am mostly using the spot trading. But based from what I am reading, many people are attesting about the usefulness of this strategy to avoid huge losses. So in my opinion, it really depends on the trader himself. It can be his savior if he is not keeping up with his trades.

Absolutely, many appreciate this strategy as they know how to use it and have seen the benefits but for some who never try, that is certainly nothing good for them. That is why I encourage you to try this as this will surely help you from losing more and to know what really you have got. But honestly, this becomes useful during the bear season and if you are not on the computer leaving your trade unfilled.

Emitdama

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First, I thought this was an old topic but I see that it's a new one. I wonder why we always have this topic? are people still confused on its use? its name says it all, "stop loss". It only prevents you from losing further, that's it, we should not expect for more but the next move will now come from us if what we will do, either we invest again or take that money out of this market.

Stop loss won't be there if it was not useful but it was useful for those who are pro in trading, they will use stop loss and start a new session and maybe next time they can recover what they have lost and earn more but for those who didn't know how to use it then better if you just stick on hodling and waiting for the market to recover.

Topic: Is Using a Stop loss "Good" or "Bad" - page 6. (Read 922 times)