Is Using a Stop loss "Good" or "Bad" - page 7.

lixer

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Quote from: ItsCrafty on April 12, 2022, 05:48:54 AM

In spot trading I think Stoploss did not work well but sometimes. Market up and down is part of Crypto market if you put Stoploss may be it hit Stoploss mad then pump well ..many times I experienced that whenever I put Stoploss in coin it hit my Stoploss and then shoot from there. Sometime itbsave me from big loss like when Bitcoin was down from 44k to 30k in 2021.

Yes that is the reason a lot of traders feels that making use of a stop loss is not a good tool, because sometimes it can lead you to missing better opportunities in the market. There is always a good side and a bad to everything, but so far I think that not making use of stop loss has been something that has been working out for me and it’s something I can deal with, so I rarely consider making use of this tool.

There are still people who think otherwise, that’s why we can’t all be the same, if you perceive that a particular strategy is working better for you, it's good to hold on to that and not do what other traders are doing.

Kasabus

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Quote from: mk4 on April 11, 2022, 10:50:07 AM

It's neither good or bad — because it's just a tool. You simply use it if you want to idle out a bit. Basically you use it to automatically sell if it drops too much to a certain pricepoint where you think it could drop more. And as with any other tool, people use it differently. You just need to use it in a way that it benefits you with your strategy.

Using stop loss will only be useful if you are benefiting from it, but if you are seeing it differently, then that makes it useless for you. So it really depends on how you use it. But as for me, it serves as a helping tool to create security on my position. So i don't have to worry every time i trade, because i have set my stop loss so i won't fall for further losses. However, others are seeing it differently, because they tend to see stop loss as more of a threat than a helpful guide.

Issa56

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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.

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Quote from: YOSHIE on April 12, 2022, 01:32:04 PM

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

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

As far as I know the technique used by crypto traders with stop loss investment instruments, it's a good step if you use and understand, the meaning of the word to defend your investment money from losses and to make a profit from a stop loss strategy.

What is important and you need to understand in the stop-loss technique, you have to really master and understand when is the right time for you to do it, that's important, what makes the stop-loss system risky is that if you use up all your funds you can use only a small amount of your Bitcoin funds, what's more important is to do the calculations and make sure you hit your stop-loss properly.

Stop loss is very helpful if you do know on how to make use of it but of course it would really be needing up some timing or exact time on when you would really be making use of it.

It wont really be created if it would really be just having no use to traders.Of course it is really relevant it is really just depending on how someone do able to use it on the right time.
Doesnt matter if its bad or good because profits would really vary on different factors or decisions made by someone.

Mpamaegbu

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The issue of using Stop Loss or not using it is as old as the arguments on it from proponents of it as well as opponents of it as usual. I've contributed to this same topic here (I don't know if it's by the same user or not) either early this year or in 2021 and I shared my thought on it. To put it down to a point, I think that debate has been over laboured. Anyway, to restate it; by my assessment as one who trades, Stop Loss is necessary. It's part of the MM – Money Management, mechanism to help cushion the effect of account liquidation. I quite understand what OP's worry is and it's called hunting of Stop Loss by some perceived brokers, exchanges or platforms. The reason that happens is because most traders like to place their SL around psychological levels. It's best one places SL a bit far from these levels and that will be fine. Don't keep SL close or tight to those levels.

YOSHIE

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

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

As far as I know the technique used by crypto traders with stop loss investment instruments, it's a good step if you use and understand, the meaning of the word to defend your investment money from losses and to make a profit from a stop loss strategy.

What is important and you need to understand in the stop-loss technique, you have to really master and understand when is the right time for you to do it, that's important, what makes the stop-loss system risky is that if you use up all your funds you can use only a small amount of your Bitcoin funds, what's more important is to do the calculations and make sure you hit your stop-loss properly.

blockman

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Quote from: Hamphser on April 11, 2022, 06:53:34 PM

Quote from: blockman on April 11, 2022, 05:54:32 PM

It's actually good. When you're away and you don't expect the market to plummet and you should stop further loss then it's the one that will do it for you automatically.
Those traders that don't use that feature, might haven't heard about it and likely are new traders. But eventually, they'll get to learn about it because that's a big help whenever you're trading and when the market has been bloody again which we're not expecting to happen at this moment.
If you have come with that analysis that stop loss is the quickest way to lose money, I can't understand how it's like that for you.

Using Stop loss would be most likely when you are away from your keyboard on where you cant able to monitor the price movement which is relevant and something needed or you are conservative with your overall capital.

You could test out for yourself whether its really working for you or not and this is very situational because there are trades which arent that much needed or necessary
and there are times which it is really something ideal to be used.So its case to case or situational kind of tool which you could make use on.

That's actually the reason why it's very helpful to use the stop loss. So whenever you can't monitor and check the market, you're still there through stop loss feature to cut your possible continuous and big losses.
I've been seeing those newbie traders that don't use this feature much and they're already confident on their trading skills. But the reality is that they're not yet ready for it.

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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?

You can trade without a stop loss if you want, however at some point there should be a level in which your losses should be too big for you to bear and you need to close the trade at that point, that is what a stop loss does, it prevents you from getting a catastrophic loss, now if what you describe is happening to you constantly then you need to set your stop loss at levels that are not as obvious, as whales know very well how much they need to make the price to go down to force the activation of those stop losses and then buy when the price is lower, giving them almost instantaneous profits.

The Cryptovator

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Usually, we use stop-loss to secure our investment, not to make a profit. It's not bad at all, sometimes save your money though you can't profit. For me once I use stop-loss most of the time hit that and price pump again. This means I can't profit but I avoid the risk of losing a lot. So it really depends on you how are you going to use a stop loss. If you can take risks then you may avoid them, otherwise the better option is to use stop loss to secure your investment.

SanderKlakegg

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It all depends on your trading style.
If you're a day trader, it's a must and something you have to do every time you enter a trade (stop loss).
If you're an investor and your goal is just to increase your coins, then I don't think you have to put a stop loss. After all, if you don't plan to sell a conventional BTC for 10 years, you may reinvest a huge amount of times during that time!

Cling18

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It depends on the type of trading that you're doing and the strategy that you usually apply. As for me, stop loss is necessary when you are still undecided about your next move or can't deal with the movement of the coin that you're trading. It's a good way to protect your funds during undecided times or when you aren't confident about your strategy. I could see it as a helpful tool in our trading journey.

jeha2015

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Quote from: ItsCrafty on April 12, 2022, 05:48:54 AM

In spot trading I think Stoploss did not work well but sometimes. Market up and down is part of Crypto market if you put Stoploss may be it hit Stoploss mad then pump well ..many times I experienced that whenever I put Stoploss in coin it hit my Stoploss and then shoot from there. Sometime itbsave me from big loss like when Bitcoin was down from 44k to 30k in 2021.

it is good money management and could work well if we put our stop loss correctly in good support or resistance. but alot case also happen deviation make our stop loss useless and we loss our balance meanwhile price move parallel with our position. it really be dillema for us , if we didnt proper set our stop loss.

Quote from: tvplus006 on April 12, 2022, 04:15:00 AM

You can trade without stop loss if you are in front of the terminal directly during the day and can close your position if the price moves in the opposite direction to your expectations. But, if you need to do other things or relax, then you definitely need to set a stop loss to avoid dump&pump.

with stop loss , no matter happen with market atleast our psychology feel relax and comfortable although we left our position for a while.

ItsCrafty

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In spot trading I think Stoploss did not work well but sometimes. Market up and down is part of Crypto market if you put Stoploss may be it hit Stoploss mad then pump well ..many times I experienced that whenever I put Stoploss in coin it hit my Stoploss and then shoot from there. Sometime itbsave me from big loss like when Bitcoin was down from 44k to 30k in 2021.

tvplus006

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

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

You can trade without stop loss if you are in front of the terminal directly during the day and can close your position if the price moves in the opposite direction to your expectations. But, if you need to do other things or relax, then you definitely need to set a stop loss to avoid dump&pump.

traderethereum

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

So is using a stop loss good or bad?

It depends on your strategy or your trading way.

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

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

I use stop loss when I am not sure my analysis can give me the right.
For example, at this moment, bitcoin faces a down deeper from the last high price and maybe not many people predicted.
When you trade, buy and sell, you can use this stop loss and place it below your last buy order to prevent the loss will be bigger and when the price is really down for more, your loss will not be too big.
The win ratio using this strategy will vary, and I can not say that the ratio will be the same.

Example:
Your buy price is at $40,200, the price now is at $40,195, and you can place your stop order at $40,180 to minimize the losses (it is just an example)

Farma

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actually this depends on the strategy you make. however, stop loss is used to keep us from getting deeper losses.
Personally, I've had several deep losses for not using such a system. in fact, to this day, I still hold the coin because the dump price is very severe. So, I feel that it is very important in a trade. other than that, you can use a stop loss to take advantage of the moment dump. you can sell faster before the dump is bad, and buy it back when the price is really low. it gives you 2 advantages, namely the assets you own are not dumped in large quantities, and you get a large enough amount for the assets you buy back. however, it all depends on how you use it.

Eternad

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It’s always good and never been bad because it was a limiter to trading for risk management. It looks like bad if the trader using it don’t know it’s purpose such as placing the SL before the support and after the resistance. The only disadvantage of using SL is when you place it on the wrong price but this option is very vital on risk management.

NewRanger

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Stop loss was one of money management to controll huge loss when trading in market. using stop loss also must set up at right place, if it dont i am believe when it hit price bounce back again and it really decrease our balance slowly. before set in which level stop loss put , we must identify buying level correctly and on major support or resistance. without skill identifying suport and resisteance , our stop loss will useless to manage risk.

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

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?

Good if you're worrying about the potential decline of your asset but half bad I guess for some reason the asset has climb up on what you're expecting. I think novice traders aren't that familiar with it or some forget to use them. I don't have an estimate over my win and loss ratio tbh, but for me it's always a must to have this feature especially on the leverage market.

Findingnemo

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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?

It's good because it can save you from huge loss apart from this it is not going to help you in either way effectively, its just a feature to execute your trade when it goes beyond you losing affordability and when you ask a successful investor they know the importance of every penny you saved from wrong decisions.

Topic: Is Using a Stop loss "Good" or "Bad" - page 7. (Read 914 times)