Topic: Stop loss - page 3. (Read 702 times)
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In all my years of trading, I have never experienced such that my stop loss will be pushed down below what or amount I initially set as my stop loss, though the scenerio or chances is very possible, and like other people have explained, it mostly occurs when the market moves down sharply, based on what I have read about it, I think the best way to avoid such scenario is to constantly monitor the market even after having set a stop loss, though the chances of such thing happening is very rare, but then , it still happens sometimes.
I had some scenarios of my stop loss being pushed down a little bit incurring me more loss what could be the possibilities.
Usually, ,if you are using trading view you can use the Average True Range(ATR) to be able to set a good stop loss for you. Doing so would ensure that that if takes into cognizance the volatility of the trade. To know the true stop loss, minus the ATR from the stop loss you have set for yourself in the trade. I think that such volatility do affect the stop loss also. Volatility is not only in a particular platform or broker, it is global and across all depending on the pair that is volatile at the time. Of course if you are trading btc/usdt in a platform, whatever happens to the price volatility goes across the pair wherever it is traded except the exchange manipulate it
Projects that do not have volatility are seen as a dead one or a ranging market. The difference in the volatility of a particular market is what will determine whether we are going to make profits from the market or not.
For medium to long term trades, SL is not as common, although that doesn't mean it shouldn't be done. If the trade entry point is not chosen correctly, then the SL can be a lifesaver, since the price can fall very significantly and thus the trader can turn into a forced holder who will wait for the price to return to the previous level, much longer than planned.
SL is a trading culture and if you read the biographies of the great traders who have been successful at it, you will see that almost everyone used stop loss, so it is clear how important this is and what a big role it plays in risk management.
It is true but you need to make sure you set it at the right place and do not lose money. There are two cases where SL could be terrible, first of all if you set at the wrong place, the price could drop there and then bounceback to higher prices, which would leave you with sold and missed your profit chance, make sure you know the resistance and support levels like back of your hand to follow where you should put your stop loss.SL is a trading culture and if you read the biographies of the great traders who have been successful at it, you will see that almost everyone used stop loss, so it is clear how important this is and what a big role it plays in risk management.
Second version is the price going up too much after you set it, if you are not careful, your SL will be far away, but the price could go up and down in the future and you miss out on your profit chance, instead of making 100% return, you make a 20% return because you forget to reset your SL.
I had some scenarios of my stop loss being pushed down a little bit incurring me more loss what could be the possibilities.
Depending on your trade plan you should not move the stop loss below because it will further increase your risk if the market move on against your trade plan. In most cases you will keep the stop loss as it is, in case the market move against you. You will incur the loss and get out of the market.
If you want to dollar cost average your future trade then it should be a part of your plan before you initiate the trade. Stick to your plan and you will be safe from big losses.
Therefore, to resolve this, and if you are using the Binance platform to trade, there is a button that Binance added to their trading platform to solve this problem which is called price protection, This prevents your stop-loss and take-profit setup from going way above the set price level, you can make use of it by switching on.
The price protection feature is every trader wanting to use a trading platform should ensure that the platform has so that they can be protected from severe market movements and conditions. If a trading platform you want to use do not have the feature, it will be good that you look to use another trading platform to avoid slippage. Price protection feature is not only good for people who just started trading, it is also good for the long time traders who already have market experience.This makes it an awesome tool to be used by not just beginner but experienced traders to push where the instincts don’t let you.
Still, there are those who don’t or don’t let the activations do its job. It’s bad practice that develops into an uncontrollable behavior. You ought to be comfortable about the speculations from an analysis especially when it’s good then, you let the tools do it’s job.
Therefore, to resolve this, and if you are using the Binance platform to trade, there is a button that Binance added to their trading platform to solve this problem which is called price protection, This prevents your stop-loss and take-profit setup from going way above the set price level, you can make use of it by switching on.
The price protection feature is every trader wanting to use a trading platform should ensure that the platform has so that they can be protected from severe market movements and conditions. If a trading platform you want to use do not have the feature, it will be good that you look to use another trading platform to avoid slippage. Price protection feature is not only good for people who just started trading, it is also good for the long time traders who already have market experience. 
I had some scenarios of my stop loss being pushed down a little bit incurring me more loss what could be the possibilities?
Therefore, to resolve this, and if you are using the Binance platform to trade, there is a button that Binance added to their trading platform to solve this problem which is called price protection, This prevents your stop-loss and take-profit setup from going way above the set price level, you can make use of it by switching on.
I have read and many people said many things about this scenario and many said about liquidity and more things. You are the person that gave a solution to it and for people using binance platform. I have decided to visit this place to see if I can start earning from day trading. I have seen people complain about stop loss that it is a tool that makes them lose money. I was surprised because we all know that stop lose is there to help us stop or curtail our losses but I was surprised when I heard the reverse about stop lose. I know I have more things to learn and I will get them with time.
I had some scenarios of my stop loss being pushed down a little bit incurring me more loss what could be the possibilities.
Depending on your trade plan you should not move the stop loss below because it will further increase your risk if the market move on against your trade plan. In most cases you will keep the stop loss as it is, in case the market move against you. You will incur the loss and get out of the market.
If you want to dollar cost average your future trade then it should be a part of your plan before you initiate the trade. Stick to your plan and you will be safe from big losses.
There will be many scenarios that we can run and there will be many steps that will help to reduce the risks that will arise in the middle of the trade that we are doing to determine the stop loss point, it is beyond control or initial planning (these are things that may happen) or we could just do a stop loss like the initial planning, but I think both are not a problem as long as we know what is likely to happen and the risks we will face.
I had some scenarios of my stop loss being pushed down a little bit incurring me more loss what could be the possibilities.
How that could be if you've already made a stop loss? That does mean that you've set your stop loss and removed it?Because once you set your stop loss then that's the metric that you've set so that it will control and stop your losses. So how can it incur you more losses if you've done so?
And for a scenario for you to incur more losses is either you removed it or didn't set it. But as long as you set SL, you're good and won't make more losses.
I don't think I'm the only person that have witnessed this besides I only experienced it when I'm trading spikes . I already gotten some info's already base on liquidity and brokers too ,I don't think you really get me sir
Usually this SL's are really that commonly used on day trades and futures but if we are really that doing some swing trades or weekly or monthly positioning before we do snip out profits
then it wont really be that necessary but doesnt mean that you cant use it. It would really be entirely be depending on your risks appetite or on how you do really take the market.
I'd still use it if I'll leave it there for months and I'll be back just for assurance that I'll be able to cut loss if the market goes in turmoil. then it wont really be that necessary but doesnt mean that you cant use it. It would really be entirely be depending on your risks appetite or on how you do really take the market.
I had some scenarios of my stop loss being pushed down a little bit incurring me more loss what could be the possibilities.
Depending on your trade plan you should not move the stop loss below because it will further increase your risk if the market move on against your trade plan. In most cases you will keep the stop loss as it is, in case the market move against you. You will incur the loss and get out of the market.
If you want to dollar cost average your future trade then it should be a part of your plan before you initiate the trade. Stick to your plan and you will be safe from big losses.
Stop loss would really be a border line on which this is only the amount % of your capital on which you are really that prepared for it to lose on the time that the market would really be going south
or totally opposite on what you had set out on which it would really be just that once those SL's been hit then it would completely be triggered and would stop or cut the line on potential losses
if the price would go down against further. Unlike if its just like that it would be an open trade then negative would really be going down deeper and which is something that we dont really like to see.
Usually this SL's are really that commonly used on day trades and futures but if we are really that doing some swing trades or weekly or monthly positioning before we do snip out profits
then it wont really be that necessary but doesnt mean that you cant use it. It would really be entirely be depending on your risks appetite or on how you do really take the market.
For medium to long term trades, SL is not as common, although that doesn't mean it shouldn't be done. If the trade entry point is not chosen correctly, then the SL can be a lifesaver, since the price can fall very significantly and thus the trader can turn into a forced holder who will wait for the price to return to the previous level, much longer than planned.or totally opposite on what you had set out on which it would really be just that once those SL's been hit then it would completely be triggered and would stop or cut the line on potential losses
if the price would go down against further. Unlike if its just like that it would be an open trade then negative would really be going down deeper and which is something that we dont really like to see.
Usually this SL's are really that commonly used on day trades and futures but if we are really that doing some swing trades or weekly or monthly positioning before we do snip out profits
then it wont really be that necessary but doesnt mean that you cant use it. It would really be entirely be depending on your risks appetite or on how you do really take the market.
SL is a trading culture and if you read the biographies of the great traders who have been successful at it, you will see that almost everyone used stop loss, so it is clear how important this is and what a big role it plays in risk management.
I had some scenarios of my stop loss being pushed down a little bit incurring me more loss what could be the possibilities.
How that could be if you've already made a stop loss? That does mean that you've set your stop loss and removed it?Because once you set your stop loss then that's the metric that you've set so that it will control and stop your losses. So how can it incur you more losses if you've done so?
And for a scenario for you to incur more losses is either you removed it or didn't set it. But as long as you set SL, you're good and won't make more losses.
I don't think I'm the only person that have witnessed this besides I only experienced it when I'm trading spikes . I already gotten some info's already base on liquidity and brokers too ,I don't think you really get me sir
I had some scenarios of my stop loss being pushed down a little bit incurring me more loss what could be the possibilities.
How that could be if you've already made a stop loss? That does mean that you've set your stop loss and removed it?Because once you set your stop loss then that's the metric that you've set so that it will control and stop your losses. So how can it incur you more losses if you've done so?
And for a scenario for you to incur more losses is either you removed it or didn't set it. But as long as you set SL, you're good and won't make more losses.
or totally opposite on what you had set out on which it would really be just that once those SL's been hit then it would completely be triggered and would stop or cut the line on potential losses
if the price would go down against further. Unlike if its just like that it would be an open trade then negative would really be going down deeper and which is something that we dont really like to see.
Usually this SL's are really that commonly used on day trades and futures but if we are really that doing some swing trades or weekly or monthly positioning before we do snip out profits
then it wont really be that necessary but doesnt mean that you cant use it. It would really be entirely be depending on your risks appetite or on how you do really take the market.
I had some scenarios of my stop loss being pushed down a little bit incurring me more loss what could be the possibilities.
How that could be if you've already made a stop loss? That does mean that you've set your stop loss and removed it?Because once you set your stop loss then that's the metric that you've set so that it will control and stop your losses. So how can it incur you more losses if you've done so?
And for a scenario for you to incur more losses is either you removed it or didn't set it. But as long as you set SL, you're good and won't make more losses.
I had some scenarios of my stop loss being pushed down a little bit incurring me more loss what could be the possibilities.
Usually, ,if you are using trading view you can use the Average True Range(ATR) to be able to set a good stop loss for you. Doing so would ensure that that if takes into cognizance the volatility of the trade. To know the true stop loss, minus the ATR from the stop loss you have set for yourself in the trade. I think that such volatility do affect the stop loss also. Volatility is not only in a particular platform or broker, it is global and across all depending on the pair that is volatile at the time. Of course if you are trading btc/usdt in a platform, whatever happens to the price volatility goes across the pair wherever it is traded except the exchange manipulate it
I had some scenarios of my stop loss being pushed down a little bit incurring me more loss what could be the possibilities.
Usually, ,if you are using trading view you can use the Average True Range(ATR) to be able to set a good stop loss for you. Doing so would ensure that that if takes into cognizance the volatility of the trade. To know the true stop loss, minus the ATR from the stop loss you have set for yourself in the trade.
Many retail traders forget to or ignore SL and it ends by costing them there precious money because of liquidation. The market can be very unpredictable and volatile all of a sudden and before we realize our money is gone. SL prevents that from happenning. Big market whales use SMC to target liquidation from small retail traders. So it's alwats mandayory to use a SL. Even if you would still be at a slight loss after your trade hit Stop Loss it manages your risk and you could always make more profit from your next trade.
Remember,
No one is giving your liquidated money back. So manage risks and use SL always traders.
Remember,
No one is giving your liquidated money back. So manage risks and use SL always traders.
I had some scenarios of my stop loss being pushed down a little bit incurring me more loss what could be the possibilities.
What do you think, that market makers will allow you win easily? Nah, not that easy. The big players know how to hunt SLs because they know where retail traders expectedly place their SLs and they want to sweep off those liquidity in corrective manner before heading to the same direction price was headed earlier. I said they know where most retailers place their SL because they look at Support & Resistance and wipe them off. That's what happened to you. To avoid such a scenario, what most traders do is wait for a break of the Support or Resistance level to place their trades and not place them exactly at that spot. Wait for a break and then place your trade. stop lose is one of the most important for traders, especially when you are in futures trading, before you set your entry, don't forget to put a stop lose, you can liquidate all your money without it, I just advise here always set a stop lose or else your money will burn, put a stop lose on what you are ready to lose
This is true but sometimes I’m not using stop loss if my liquidation price is very far away on the support. I only an amount to my margin that I can afford to lose so that I will just choose whether my position will liquidate or will profit.
You can't be sure that you will continue succeeding in such kind of trade. It is highly risky trading that way .
I experience many time that my position stop loss triggered while the price action reverse after hitting my stop loss which will give me profit instead of lose if only I don’t have stop loss.
This is always the feeling when the price bounce you out on a stop loss and do a reversal to work in your direction but have you thought of if you didn't put it and the price continue against your order and finally close your capital? Always use stop loss, it is better to trade with it because you have the assurance to meet your remaining capital when you lose the trade.
I had some scenarios of my stop loss being pushed down a little bit incurring me more loss what could be the possibilities.
I think spread is more likely to be the reason. When brokers or exchange adjust spread because of volatility, it can affect the range of your stop loss.
stop lose is one of the most important for traders, especially when you are in futures trading, before you set your entry, don't forget to put a stop lose, you can liquidate all your money without it, I just advise here always set a stop lose or else your money will burn, put a stop lose on what you are ready to lose
This is true but sometimes I’m not using stop loss if my liquidation price is very far away on the support. I only an amount to my margin that I can afford to lose so that I will just choose whether my position will liquidate or will profit.
I experience many time that my position stop loss triggered while the price action reverse after hitting my stop loss which will give me profit instead of lose if only I don’t have stop loss.
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