Topic: One of the Best Weapons in Trading - page 3. (Read 1176 times)

We all know that the crypto market is very volatile but at least we can create technical analysis like this that maybe possibly gives an accurate result. Predicting is useless if you don't have technical analysis.

I would rather choose to hang on a thread for longer rather than considering on selling up on a loss.

Bots have built in stop loss options to be set by the user. But you can always trade without a bot and setting a stop loss, if the platform you are trading on has such an option during placement of the order.

Technical analysis does a 50-50 thing to prediction. It does not always predict the market correctly because of several variables being into action and many news and partnerships happening between companies that makes the market move. TA is based on the assumption that market is trading as per an undeviating market psychology, which is not always true. You can buy low and sell high but you wont need TA to tell you that. TA is used more by the day traders.

Perfect technical analysis, this very useful when you are using a trading bot and you know when to stop-loss by having a right manual set on the trading bot.

We all know that the crypto market is very volatile but at least we can create technical analysis like this that maybe possibly gives an accurate result. Predicting is useless if you don't have technical analysis.

I never like using stop loss, I would rather just ride out the storm instead of letting a stop hunting whale pick up my coins for cheap.  If your in any good coin it will always rebound if you are patient enough to wait it out.

I don't really consider myself as a trader yet, other than your usual transaction transfer. And although I've somehow heard or read about this before, but definitely not as detailed as you've explained it here for us.

Thanks for the tip and for taking the time to teach the rest of us, newbies, to be more confident when trading later!

Have you ever experienced doing trade and ended it up by #HODLING? (You bought a coin and waiting to pump, but unfortunately it dumps, and decided to wait for it until it pumps)
Have you ever experienced liquidated on Margin Trading Exchanges? (Huge red/green wick candle? )

I want to share my weapon against that situation. Meet, STOP-LOSS.
What is Stop-loss?
• Stop-loss is accepting your loss on the trade or you are minimizing your loss or cutting loss before getting rekt in ahead of time.

Most of the exchanges don't have Market Stop-loss only the Limit stop-loss as far as I experienced different exchanges.

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Conclusion
Using stop-loss is not worst at all. Accepting our loss is not bad. Minimizing our loss is absolutely good than maximizing it.
There will be a good trade set-up. Not all the time are good to trade, sometimes the best trade is not to trade.

Minimizing the loss while doing trading is one of the important factor to be successful trader but people regrets their loss and give up when they have the lots of opportunities to be missed on the next trades.Always watch the market like hawk and hit the most successful trade if you are lucky enough.

I still got confused on you explanation, meaning all I need to is to set the amount in which I think I will be loss. At least if goes down rapidly I am safe for the huge loss. Is that what you're talking about? Just all I know is there many sellers I will sell then if there many buyers I
will buy coins, just simple as that.

Minimizing the loss while doing trading is one of the important factor to be successful trader but people regrets their loss and give up when they have the lots of opportunities to be missed on the next trades.Always watch the market like hawk and hit the most successful trade if you are lucky enough.

Have you ever experienced doing trade and ended it up by #HODLING? (You bought a coin and waiting to pump, but unfortunately it dumps, and decided to wait for it until it pumps)
Have you ever experienced liquidated on Margin Trading Exchanges? (Huge red/green wick candle? )

I want to share my weapon against that situation. Meet, STOP-LOSS.
What is Stop-loss?
• Stop-loss is accepting your loss on the trade or you are minimizing your loss or cutting loss before getting rekt in ahead of time.

Why we need to use stop-loss?
Example:

As you can see the example above, you minimize your loss around 5%, because if you didn't exit on your trade or accepted your loss, you can lose a huge amount in the future if the price continues to dump.
Onto your next trade! Always remember that there will be always a good setup and sometimes much better if you learn how to accept your loss.


Where we can use stop-loss?
Let's say your trading style is about support and resistance.
If you have a long entry, the best to put your stop-loss is on below on the support.
If you have short entry, the best to put your stop-loss is on above the resistance.

It's always up to you where you can set your stop-loss, just always remember that when you use it, you are minimizing your loss in ahead of time or once your chart becomes invalidated.


How to use stop-loss?
You can set your stop-loss once you already had your entry, so this order will be executed based on your condition manually entered.
Example on Bitmex:

For example, I bought(long) $500 worth of BTC at the price of $12,000.
I set my stop-loss sell order on $11,500, less $500 on my entry price.
So, once the price of BTC goes below or on $11,500, my sell order executed and I only lost around 4% on that trade.

This is example for Binance of Limit Stop-loss:
You will set an order:

and

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Most of the exchanges don't have Market Stop-loss only the Limit stop-loss as far as I experienced different exchanges.

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Conclusion
Using stop-loss is not worst at all. Accepting our loss is not bad. Minimizing our loss is absolutely good than maximizing it.
There will be a good trade set-up. Not all the time are good to trade, sometimes the best trade is not to trade.