Topic: One of the Best Weapons in Trading (Read 1199 times)

Very useful information every new or potential trader would need. This is a very resourceful platform. I have lost so much already and the market keeps bullying me anytime I try a come back. I have been seeing this "stop loss order" but I never knew much of its importance. Thank you for the detailed tutorial on its usage.

Stop-loss doesnt give you any profit and i dont know if you do know on what you are saying  or just totally trying to go along with the discussions here without even knowing on whats Stop loss in the first place.
It is a limiter on what price your trade should stop, once its triggered or hit then consider it as a loss. Same goes for TP or take profit too where once the condition had been met then it will surely execute according on that you had set-up. Of course there are advantages or disadvantage, it depends on what kind of trader you are because if you are a long term kind of trader then these tools wont really be needed nor be relevant into your trading system but if you are active/day trade then these tools are very helpful i shall say.

I understand your idea, exchanges are top in market manipulation and this can open investors (especially crumb holders) to sell off, while they prepare to come back into the market with a pump It is advised never to sell all your coin except there are valid news of exit scam or approaching long bear market. Understand the fundamentals of every coin and stay close to the community. It helps to understand the movement of the price

Well, sounds good to be true. Stop-loss trading perhaps gives you a profit but not consistently, there is still no assurance on it that it will give correct functionalities when  you will execute the stop-loss method. But at this point, --I appreciate OP's work for putting effort and tried to share with us his best weapon in trading. We had different techniques and strategies in trading but I still prefer the basic strategy which is buying when it is low and sell when it is high price in the market.

I think the best weapon you have in trading is the exchange you are using. Without a proper exchange you can't do anything, exchange is actually the weapon you are using and all the other stuff are the features of that weapon, so the stop loss could be the lock or maybe buy order could be the trigger, but the weapon itself is the exchange without a doubt.

I do not believe that you could use all of these small stuff on a bad exchange and still be fine, at the very least that exchange could be hacked or could have a pump and dump and you would be screwed no matter how great you are utilizing the features of that bad exchange. On contrary if you are using a great exchange, even if you do not utilize the whole features of it, you could still use some of it and will be fine as long as the exchange is great.

Stoploss may sound like most important tool in trading but in my understanding, not in the every trading strategy and not in all types of markets. We can simply skip the need for stoploss, by withdrawing into our wallet with the plan of long term holding.

Yes, long-term holding will simply eliminate the need of going for stoploss.

I'm trading only in spot market and I am choosing my trading assets after long and strong due diligence which means I am trading only highly potential asset which are good for long-term holding as well. In recent times I find such an asset is, GRIN. It is a privacy oriented coin and it must be having great future still I am trading it in short-term but if market is not going as per my expectation then I will simply go for withdrawing into my wallet. I never need to exit in stoploss.

Actually this needs patience thats why there are no need for being problematic.
Stop Loss is one good way to keep your funds safe but to  profit?i don't think so.
exactly mate,there are many available knowledge now at our point,Online is giving free for us to make our way to success.

Thanks to thread like this because we are sharing our knowledge to help others out in trading misery .

That's my point, stop lose tools has some great disadvantage compare to it advantage. Imagine you're about to pick profit and before then you get hit by stop lose tool (what a regrettable mood such a trader will be), that means, you have lose out of the game gains. Doing a thorough research could save us from this action while we wait patiently for the coins to hit bact our targets.

It is good that inspite of not using much stop loss you end up keeping profits. But just on a cautious note always have certainly percentage in mind that you can afford to lose and if it falls at times you may end up in a huge loss if you do not use stop loss. Have seen people losing their money not such instances when they have not used stop loss particularly.

Stop loss is one of the best tools in trading but it has not worked for me well. I have tried to used it but most time my position always get hit before a reversal in my direction. Patience has worked for me and I have been making money from trading without mush worrying lately

Exclusive literacy is the path to success for a professional entrepreneur. Newsletter available, mobile application available highlights professional training free registration here are all success recipes. Trading will get better weapons for you when you have the experience to trade do a finish by holding a coin wait to see if that pumps.

The importance stop loss cannot be overemphasized in trading it is a trading saver purposefully used to cut losses as forex trader I analyzed my trades with risk to reward ratio while taking cognizance of the stop loss to cut off a losing trade while a percentage of my portfolio is lost,
I also personally experienced a scenario of price analyzed to move northward i.e bullish however turns bearish and painfully hit my stop loss before returning to bullish of course wide stop-loss wouldn't cater for a profitable reward in trading thus this is indeed the most difficult part of trading which requires experience.

Good point, from those mistakes that you committed will start a new understanding. Assess and observe what
particular things that happened and developed
sets of anticipations it will enhance your chance

to fully recognized your opportunities, with how volatility are present from crypto market you need to make sure
how will you use every tools that you've
learned to take your advantages.

In his life, each person learns not only from the mistakes of others, but most of all from his own mistakes. In my opinion, trading is no exception, and therefore any failure a smart trader will be able to turn as an advantage in subsequent activities. The main thing is to understand your mistake and take it into account in the future. Of course, the cryptocurrency market is very volatile and there can always be problems, but you always need to optimally approach minimizing your risks.

Whenever I get on a new trade, I always try to setup up stop loss orders incase the trade doesn't go in my direction (it doesn't always have to) Using stop loss, I'm able to cut my losses before they start escalating to even bigger amount. The major downside with using stop loss is that you can get stopped out of a trade, lose some percentages and then the market will continue to move in the direction you originally analyzed it to go. It's painful but then very helpful especially if you can't monitor your trades at all times.

One of the best weapons of trading is to follow trading strategies and charts. By following the trading charts the losses are less and the difference between the currencies is understood. It is better to use the indicator to get the right result. However, you can still change the colours and periods of the indicators for analysis in the desktop version.  If you reduce the period you will get fewer signals but most will be correct. In this case, the risk is much lower.

Absolutely. This thread is only minimizing the loss and also in this way, you can maximize your profits since you still have less loss then possible you can gain more profits since your capital is still high.
Every trader got a loss, you can't be a succesfull if you don't experience such downsides, not everyday is a christmas day.

You are right but no sure tips that guarantee traders only profit, profit and loss works together, maximazing your profit while you minimize your loss is what shows how good are you at what you are doing. But is definitely sure loss will come one day.

This is correct.

This is wrong. Gambling is same as taking a risk whether it be for the aim of a reward or not.

Correct. Which is why people are attracted to it.

We can say that any type of gambling has a luck factor in it. Thats why it is same as taking a risk. A government job is not gambling because it will pay you a fixed amount of money every month whether you slack it or work your ass off.

If you read it again, I was referring to F&O market. That is essentially a type of gambling while Spot trading is not a complete gamble. Maybe you are interpreting it wrongly and I am sure that we are both on the same page.

Knowledge is the power, in everything. Trading isn't just A+b=C and done, it's solved whether the price will go up or down, NO! At the same time trading is an informational war between persons cause those who know what happened recently have a higher chance in it, you have to analyze information on a higher level, determine what specific news happened for example around currencies you trade and this includes every kind of news: related to exchanges, related to market cap, related to specific persons, etc. Every step has an impact on everything. But... At the same time, luck is beneficial and even a mistake can be a lucky step, believe me.

Trading isn't gambling alone and gambling isn't a synonym of making risks. Without risk, there is no reward. Gambling is pure luck except for some games. Everything has risks but not all of them are connected with gambling. Don't use these sentences wrongly.

It is a risk vs reward system of money making. Will not call it a job unless someone is doing it for earning their daily bread, or they are paid to trade on behalf of someone like a financial advisor/investment bankers.

Its not just crypto market, without skills you wont survive in any sort of job. If you are learning something new, unless you have a passion for it and are able to develop the skills, it will be job that you will hate. Now trading is a bit different here because there is a risk involved and in a job the risk is lesser.

There is a difference between betting on prices and buying/selling assets. The second one is spot trading and that is less likely to be a gamble if you do your research first. The futures and options market are more of a gamble, though analysis helps.

I agree with the above in that there isn't an ultimate weapon one can use to always be successful in trading since it is all dependent on the market highs/lows. What I'd say is of extreme relevance is the ability to read and understand the trends or even spot them and act accordingly to minimise loss. Knowledge thus is by far the best more robust avenue to ensuring success in trading, and all of it is irrespective of the exchange platforms used!

Trading is a completely different job which the traders need to analyze the market situation, technical analysis and fundamental analysis are always needed in trading. Without these skills, it is impossible to survive in the crypto market. Yes, some traders will always gambler with their money in order to make huge profits.

I think is it not right to call powerful or not powerful. It is a question of performance and through bull and bear markets is what defines it.

Knowledge or fundamentals is important but to what extent the market is going to move is somewhat understood from the technicals though I tend to take TA with a 50% grain of salt.

I would not say either of them as a weapon. But different tools that can give you an insight. What is important is that you have a set target to buy and another to sell. Be sure to modify them but dont stretch them to unreacheable proportions. Taking these decisions need the help of data from past charts.

Using stop-loss I guess was really an effective tool to use when we do trade in the actual platform.
Thanks for these very good tips, Sir. I will keep trying to understand all the information you've posted
here in this section thread.

With experience and good knowledge in cryptocurrency trading, each trader will be able to get very good income from their activities.  But the results of this work may vary depending on a combination of certain circumstances, which are quite a lot and quite often on the cryptocurrency market.  it is this circumstance that can bring a trader luck or failure.  therefore, I do not agree too that luck does not exist in trading.  Of course, the Results will depend on What actions a trader will take in the event of a successful set of circumstances on the cryptocurrency market.

Thanks for understanding it. That's why I made this thread to help some traders there to use some tools or ways to improve their trading skills. We don't need luck here.
I don't agree with you they are gambling traders, but we can re-phrase that, the term could be more like "wasting money", "giving away money", in short, it is much better to do it on some gambling websites if they want to use the luck on trading.

What you say is true, friend.  That in trade there is no luck but skill.
Because basically trading requires technical or fundamental analysis.  It is not uncommon for me to say that those who trade but cannot conduct technical or fundamental analysis I say they are gambling traders.

practically, a lot of experience in business is the best weapon it's because more accomplishment in trading satisfaction is a very useful command to gain more ability in trading, so if you have it you will, actually so many successful business owners start with small and endured until it grew up therefor if you are a newbie in the field of the crypto world you should never mind the pain and stress.

People do really have these kind of perceptions and you can differentiate between a true trader than to those who do trade blindly or just purely relying on luck.

SL are one of the best tools specially when you do make active trades but if you do go for long term then it isnt really that needed.There are lots of tools needed for you to

survive this market and not just jumping into the water without any proper preparation.It might not be precise but it is way more better than have no basis at all.

Market is always been unpredictable even how good our analysis are but at least chances on making profit is there and not just relying on intuition or guts.

Stop losses are as important as a good entry point and exit point. Once a trader has built enough discipline, it is the life saving move for him. Most times naive traders wait out a trade to pump back before selling (which works sometimes). But history has taught me that accepting my loss early enough at maybe 5% helps me in two ways
1. I restrategize early and find another good reentry point
2. I don't lose majority or all of my funds if the coin tanks 1000%. So technically, on a long run, stop loss trader always come out better

I strongly agree that stop-loss is the best weapon in trading. Because stop-loss can save the capital we have, with stop-loss when
the market suddenly drops in price, the losses we experience can be minimized. Therefore trading without stop-loss is very risky
at all, because we could be threatened with losing large amounts of capital. With stop-loss also avoid we hold coins for a long time.

Lol. I don't believe in LUCK on trading, especially you are in cryptocurrency trading.
Doing trading needs a skills and you should love it. If you want luck in trading, much better go play a dice game in some casino.
Even a lot of people saying trading is like gambling, well there's some points but still, a skilled trader way greater than lucky person.

When I got started into the world of trading it takes a lot of problems because in the world of trades it is hard I thought on the first thing on trading is just predicting the market price of the coin on the first week in the start I always earned a lot of profit but in the next few weeks I lose double on my investment because I'm not mentally stable and this is quite bad because of something problem but still ignore those and I start in trading then I lost on the first trade in the next coming trade becomes stable and after I lost for over two times for the consecutive trades in loss to and I make a double wage that is not a good plan and lose now I'm holding a lot of coins because having a bad trades and it takes a lot of time before I do some changes and to make earnings.

The stop loss feature can be life saving. It's true, that when the market allows this can easily be used for any trader but unfortunately its limitation comes into existence once the market fluctuates in an irregular pattern and frequent basis. This is why even with stop loss I can't always guarantee profit, though at times using it does put my mind at ease

Yes when trading bitcoins, we can be confident about market to turn in our favor because bitcoin markets are usually highly fluctuate which will lead to escape at margin levels at least. So, for the most cases of crypto trading, I am not considering stop-loss as a weapon to safe guard our capital. Instead of that, if you exit at stop-loss and you watch market to bounce back then that will lead to big regret which again lead to not trading for the rest of the day.

Stop-lost may seem an essential when market turns unexpected like how bitcoins market did on the news of corona out break, it lost more than 35% within a day; it means if we do not exit at stop loss then we might have lost our capital more than 35%.

Maybe you were right that patience and discipline are a must in trading but I don't see any reason that this makes become the best weapon. Probably for me the best weapon is "luck" and followed by "skills", once you have this since the start when you are in trading. Well, trading is for you and you may continue your journey in trading. But if you don't, stop, and find another way of earning money because trading is not for you.

That is already given and always should do before we started to trade. And it's on the more emotional or mental side which we can adapt by ourselves.
Patience and discipline is an extremely important weapon but we should also practice some technical side, we need to use some of them to help our trading life better and will that will help our emotionally or mentally side.

For me, the best weapon is patience and discipline. You can't be successful in trading if you're greedy enough to have a transaction even if it is not the right time to trade. You need to have good predictions and technical analysis because it will serve as your guide and hint on when to have a proper transaction. You should not execute your strategies and technique without basis, because it will make you end up being a loser. In order to win, you need to become used to the predictions and understand how market moves. There are people who prefer to hold until the right time and they don't want their money to circulate in the market and it depends on you if you are really confident enough with your decisions.

Though I would suggest you to learn about indicators more often. They are useful but not everytime. Something like a gut feeling at times and sometimes completely opposite. Knowledge on how to use them will not go in vain though.

For the general hodlers that is enough IMO. You buy low and sell high. But most dont even buy low, they end up buying high and get stuck. Then they are trying desperately to get out of the market so things like waiting on technicals, getting scammed by fake telegram signal groups keep happening.

Holding the coins for a better price is a right decision. But this becomes difficult for those who dont have a strong belief on bitcoin and fear what will happen to it in future.

Technical analysis will be complete only if it is equipped with stop-loss which is all about what OP is emphasizing. Technical analysis will help anyone to predict the market directions hence I am not sure what you mean by predicting without technical analysis. You mean predicting randomly? Most people here do trade without stop-loss which makes their trade to be opened for more time period than usual. IF they opt to exit at stop-loss then they can close one trade in loss and may cover that loss in next trade.

This is what most of the traders are doing because they are more confident about bouncing back of the market. I guess it will be possible only for crypto trading and for any other trading you must exit at stoploss so that you can minimize your losses and you will get another chance to recover your losses.

I agree to this sentiment thats why i do seldom make use of lots of TA's or indicators when it comes to predicting price but somewhat i do simply make use of support and
resistance lines and dont make or use much other than that.SL are good to minimize loss but i do see this is more relevant when dealing with traditional markets but for
crypto? I would rather choose to hang on a thread for longer rather than considering on selling up on a loss.

Stop loss is must have tool to implement by short term traders and mid term and I don't think its really needed for one who trade once in a while when they can make profits.By the way that is well explained with example which will be helpful for many traders who doesn't know much about it.

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.

I think perfect analysis of situation is definitely best weapons in trading. Analysis means you should know their project, community,their hard working skills, their management.their team , their ico,  after done these speculation you can enter to market and try to make some profit.
But in the crypto world Cryptocurrencies are increasing every time so very difficult and very risky to trade so do analysis and buy on absolute low point.

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 also did a mistake of not using a stop-loss during my few trades and the result is that my portfolios is too much down because of this. I would also recommend all the new and old traders to always use the stop loss because the market so much volatile and we never know if any coin may dump unexpectedly.

After worst experiencing for the best strategy to make a trade profitable is that always buy in depth and should be must use stop loss option upto 5% and then wait till its recovering you should be a give it a sufficient time to be bounce back.

Lol stop loss has been a weapon for traders for years, either manually putting it in the system at the exchange or using a bot, basically everyone who is decent at trading has been using this for years now, it is a bit interesting to see that stop loss finally gets the attention it deserves because every single person, even the smallest of the investors and traders should be using stop loss nowadays, without that you are basically going into lions den without your weapons as a meat and nothing more.

However I would also suggest using it smartly and not just putting it at 1% or something, those type of changes always happens, if you want to take good advantage of it, put it on support (a bit below) so you would actually get out before the storm comes in.

Welcome here! For sure, you will try soon some trading as you go along. And if you are not so busy, you can try or explore the trading world.
If you will have some spare cash or extra money soon, for sure you will think about trading in cryptocurrency and always think about what I said in the first post since I also experienced some there when I started to trade as a newbie.

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!

BUMP

When they give up, they don't have any chance to recover their losses in the past. Many traders feel that because they thought that they could not get a good time to buy any coins at a low price so they cannot back to make a profit. But if they can learn more about stop-loss, especially from this thread, I think that they can know how to prevent the big losses and even they will have time to search for the profit. Stop-loss will be the best weapons for every trader to avoid the losses if the market is run without notice like today.

What you said is totally not far from the truth, these is really one of the greatest weapon that any trader can use if he is really serious about controlling his emotion and also serious about minimizing risk in trading. It is a weapon that no newbie should ever joke with, although to me, it is more like a weapon for margin, but I think it is also useful for any form of trader, although I don’t use this tool that much because I could term my trade as something that is just very similar to holding.

I place my order and keep watching till I see a surge in the price of the cryptocurrency, that is why I don’t bother setting stop loss, but I trade only in bitcoin because even if the price goes down, I know that it will surely bounce back, if I set stop loss, I will still be the one to lose some coins.

Even not rapidly, once your analysis goes on the other side, or if you do chart, once it becomes invalidated(e.g. broke support/resistance, pattern didn't go on what you expected)
Doesn't mean there are many sellers it will go down, or vice versa with buyers, there are many fake huge sell/buy orders just to fool other traders.

Of course its important, because sometimes the price falls very deep, and if you don't immediately make a choice then you will suffer greater losses and of course it will be very bad for the stability of your wallet finances. but you are right, it does not mean you have to do stop loss every time prices fall, because not always falling prices will bring bad things, because it happened for a while. You must be like an hawk who is good at seeing opportunities

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.

Within the next five days, that is important period for bitcoin. Personally, I already made my stop-loss and profit-taking orders.
Like that (taking profits at $13300, while cutting loss at $10800):
I also suggest other newbie crypto-traders to do this. For experts, I don't mention about them here, because they actually can make better orders than mine.

This is a good weapon for short term trading, but honestly if I use stop loss on my investment, I would not be down right now with my portfolio but not regretting it. When I say the word "HOLD" and we mean it, we won't worry regardless of what will happen to the price as we have a big target of profit.
Still I'm proud to say that I "HODL" despite of the big fall after 2017.

Yeah, people are really not caring about stop loss as much as they should if they will end up selling anyway. I mean there are holders who do not mind like me that buy at any price at all and just keep it there forever, I am not a fan of selling my coins and I usually just hold as long as possible (except if there is some emergency that requires me to cash out) so that is why I still hold a bunch of coins, some of them even dropped like hell but I am still keeping them.

However, at the same time I do not understand people who sell very low, if you were aiming at selling that low why didn't you just put a stop loss and sold for a lot higher from what you end up selling it at. If anyone decides that they would be willing to sell when price falls %20, should put a stop loss at %5 as well to make sure they don't lose that much.

I have experienced all what Op has said as the pains in trading but to me, stop loss is not the safe heaven. Stop loss eats up your losses that would have come back to profit 

The solution or one of it is to reduce your risk appetite.

I hardly set stop losses on trading since I came into cryptocurrency trading. I have been trading with long terms views in mind and if I started to used stop lose it will be very impossible for the level not to be stopped and I will keep losing out especially during the noise. In as much as it is very clear that stop loss is one of the best tools in trading, it is very difficult to set it as many people have lost money through that way too.

Well indeed stop loss is very important for trading. But I use stop loss only for my daily trading and not for long-term trading. If I trade long term and the results are not in accordance with the analysis then I will buy it back in stages while waiting for the price to rise again. And for my daily trading, I set a 5% loss in each trade.


Will you always wait for the coin to become shitcoin? for me it's ok if you trade on the top coins but if you trade on coins that are only supported by hype, it's very risky if you don't use stop loss.

Stop-loss orders are good, for traders/ investors whom are underterminantly with their trading orders. They usually hesitate too much when trends broken, and price deeply crashes. They hesitate to do stop-loss, just wait hopelessly for price recoveries, even upward trends already broken. Learning how to use stop-loss is essential thing when joining crypto tradings.
One more point, always set up your stop-loss orders with percent of acceptable losses (from entry price) lower than your expected percent of profit-taking price (from entry points). Choosing good entry points, at which probability to see price rising higher than price fallings; and applying those key principles to set up stop-loss and profit-taking orders will help traders/ investors get profits in crypto market.
Personally, I always determine price to do stop-loss and profit-taking before I decide to buy bitcoin/ altcoins.

We can still consider this one as long term trading, anyway stop loss I believe is much needed for the day trader because they play on the market at a very short period of time. I do also have my trade loss level before and it works for me especially on a shitcoins. This is the best weapon to prevent you from losing, blessing in disguise probably. Trade with plan, and analysis don't just hold and sleep.

That's why some margin trading exchanges have this market stop-loss to avoid some liquidation on massive flash dump/pump of a particular coin. And additional, as far as I know, the market-stop-loss has much higher fee compare to limit stop-loss, so they have some advantages and disadvantages.

Yep, we can't really predict it. As I also experienced last few months, I have this particular coin which I bought and I decided not to put any stop-loss after buying it and look at the price now, I already lost 80% if I will sell it now, so I have no choice but to HOLD it until it will come back to my entry price or above, 4months already  .

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.

Ok, I think these Q&As complement nicely the OP, giving a view of difference available stop-loss methods and their implication in case of an abrupt swing of market price.

Under more or less extreme cases, the limit stop-loss paradoxically may perform against the better option, when the price dips quickly, the limit stop-loss value is not met by any buyer, and eventually this may lead to selling when the price is rising again (option “B”). More sophisticated methods probably can read this and act accordingly (i.e. abort the sell if limit stop-loss is skipped, but met on a recovering trend).
The market-stop-loss option is what I thought would happen, rendering as a result option “A” with results such as those you mention (an additional 2,56% loss from the intended target sell value).

Since you mentioned that you use a limit stop-loss with($10,900), the system will set an order immediately on $10,900 once the price trigger at $10,950.
-Once their are no available orders at $10,900 when you set, it will not be trigger. Since you said it was abruptly, let's say you have sell order placed at $10,900, but on that price, no one want to buy your order, so the price continue to drop, lot of sellers are already above you, let's say some people put an order on $10,850, $10,800 and so on...

So, the answer will be letter B, you will wait the price of bitcoin rise on $10,900 or above so your order placed will be executed.

But if you used the MARKET STOP-LOSS. The answer will  be letter A. I tried before when BTC value drops abruptly, sell market stop-loss on $7,800 and I lost so much, it was executed at around $7,600.

What I really wanted to know is how often and how much below the stop-loss limit an order could be executed, regardless of the exchange being used (i.e. in general terms). That is, despite setting stop-loss parameters, market conditions could in certain circumstances lead to the sell order being executed for a lower value than that set on the stop-loss order.


Let’s place yersterday’s BTC price scenario, where BTC rose something like 500$ and then dropped that same amount in a rather short period of time (12:20 to 12:56 roughly – depending on UTC settings). The question I had in mind was if the system will sell at a lower price than the limit of the stop-loss if this value is no longer available on the market.

i.e.
BTC Price is 11000 $
I place a stop-loss  order at 10950$ (trigger point), with a limit of 10900$.
If the BTC market value drops abruptly, the 10.900$ order may not be feasible to meet, and that opens 2 scenarios:

-   A) The system sells bellow 10.900$ (so I could lose more than intended).
-   B) The system only sells at  10.900$ (so I waits for that value to be met, which it may not).
I figure what goes on is “A”.

I think that using lower margin is best way to leverage on Bitcoin.
People often have big margins, they dont set StopLoss, so they end up loosing Bitcoins very often.

That is why BitMex and other similar exchanges are now full of Bitcoins

Did you mean on my example above on setting an stop-loss order on Bitmex?
Since in bitmex, there are two kind of stop loss; Market stop-loss and Limit stop-loss

My above example on Bitmex is Market Stop-loss sell order.
The only need inputs on Market Stop-loss are quantity and sell stop-loss price.
Where sell stop-loss price is when the system will automatically set a sell order, example $11,500. Once the price on bitmex/index price goes on $11,500 or below $11,500, a sell order will execute on nearest available price (if there are available orders on $11,500, then it will be executed)

The Limit stop-loss need 3 inputs quantity, limit price, and stop-price.
Where your limit-price is the trigger where the quantity and stop-price will be executed.

Example: Quantity: 600, Limit Price: $11,500, Stop-Price: $11,510.

Once the price of BTC on Bitmex will mark at $11,510 a sell order of quantity:600 stop-price: $11,510 will be placed.

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.


Well, it is really important on leveraged trading since liquidation will make you cry if you don't have stop-loss.
Yep, it's still up to us if wether we set a stop-loss or not on every trade, especially on non-leveraged trading, but for what I experienced the most, don't have stop-loss will make you no profit at all if it will continue to make a loss. Since your capital/fund for another trade is on the coin you are holding or not cutting the loss on it, so how you will gonna take profits on another trade if in case you have found another good setup?

One question I do have is the following: from a hands-on experience point of view, once the stop-loss is triggered, what sell values could one really expect to have in practice?

This will I figure depend on the exchange, the number of buy/sell orders at market value and at a fixed price, the network mempool backlog, etc.
Now in moments of high transactionality, a stop-loss triggered sale order at 11,500 $ may effectively be fulfilled for a lower value depending on the above. So my question here is really, from experience, what kind of effective real values are to be expected in relation to the stop-loss figure you set? (perhaps distinguishing between a bearish moment and a bullish one). Or does the system wait for that exact price to be matched, with no margin of tolerance to the value?

What I had in mind behind the above is to understand if a stop-loss could guarantee the exact parametrized value in a steep quick fall situation, or not.

I think you need a stop loss if you are using gearing ( leverage ), but I try a bit of scalping to gain a bit extra over simple cost averaging. I only trade with cash that I have allocated for long term investment purchases, and I never sell coins if it would result in a loss. I just move the coins into a long term HODL wallet, and top up my trading account from my fiat cash pool. Of course this isn't "proper" trading, and I would make more if I used gearing and made the correct predictions, but I don't think I'm good enough to do this, so I play it slow and safe.

This is also predicated on a belief that the long term price trend for Bitcoin is upwards.

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

---

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.