Stop Loss, A life saver or a evil? - page 4.

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Quote from: TheGreatPython on February 24, 2020, 12:39:40 PM

However, reality is if you use stop loss constantly and keep constantly get that 1% stop loss, eventually it will amount to higher than 50% total and you will eventually lose all your money anyway, which would be not a good way to lower the risk

That would be a thoughtless and rather reckless use of this tool

As you say, using stop losses in a kinda knee-jerk reaction (like automatically setting 1% stop loss) will only lead to compounding of the total loss until there is nothing left to lose. To cut losses short makes only sense when the price action is not what you expected it to be. Then you shouldn't think twice indeed

However, if you expect the price to fall further, you can even add to your position instead of closing it (say, employ some dollar-cost averaging strategy). In other words, your stop losses must be consistent with your long-term trading strategy (let's call it your trading paradigm), and thus planned well ahead

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Quote from: redigaffi on December 18, 2019, 08:17:05 AM

Hello,

I had this question in mind, since many of my trades with an adjusted stop loss got triggered, but then the market goes in the direction I wanted, but since it got triggered basically im out. I know this is due to big fishes messing around.

What do you guys think, is stop loss something or, or not so good?

We are mostly at the victim of this experiences you have had and I see stop loss as evil especially if you are unlucky. Trading has enrich manipulators then sincere traders and I always said "if you did not have funds to be among the manipulator then there is no need of going into trading because in the long wrong you are going to lose.

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In my thought of course it's a life saver. Actually it depends which kinda trading strategy you are using. Mainly it is more useful thing for day traders than long term holders. Why i'm saying it's life saver is, suppose your stop loss got triggered and price go deeper than you thought. So in this point you didn't get loss because of "Stop Loss". But if price go up after you got trigger then you just miss the opportunity to get some profit (but you don't get loss though). Here is a great article about Stop Loss where you can find positive and negative side of it.

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Stop loss literally saves us from a lot of tension and stress because you just don't need to watch the markets with the fear of getting kicked out with your whole capital getting compromised in a matter of seconds just because of that wick that comes either way that is against the direction of your trade (this applies to margin and leveraged positions). I don't trade alts these days as they look more fishy and can turn you red, not much profits as I can't hodl longer (impatient type of a guy I'm). You shouldn't buy into alts if you can't hold for longer, at least till you are in 10% profits, so stopping a very tight stop loss here is not recommended (this is for altcoin trading).

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Well, It is unfortunate that Bitcoin's price is controlled by the big fishes or whales, but I see that many trades are giving this reason as an excuse for their financial losses, that is not acceptable to be honest, giving a lot of compliments will never help and change anything, you need to deal with any situation, no matter how hard it is, there is always a solution for any issue .

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Quote from: Mahanton on February 24, 2020, 01:38:09 PM

This kind of percentage isnt suggested yet price can swing up possibly 5% on daily basis which means your SL can easily be triggered up.So it isnt suggested on setting it up into these levels.

Of course this one is a life saver if you do know on how to use it but i do agree that it do have some sort of disadvantages.

Yes, I do not set stop-loss for my trading as I believe into cryptos and it may bounce back for sure. But, I guess for the people who are shorting bitcoins in bitmex like exchanges (not in sport trading) must need to make use of stop-loss levels to cut their losses earlier which will prevent them making their accounts fully exhausted.

I guess no one could have same style of trading on both spot trading and derivative trading. We need to follow certain set of rules based on where we do trade. This way sport trading may not require to use stop-losses but for derivative trading, we must need to use them.

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Quote from: redigaffi on December 18, 2019, 08:17:05 AM

Hello,

I had this question in mind, since many of my trades with an adjusted stop loss got triggered, but then the market goes in the direction I wanted, but since it got triggered basically im out. I know this is due to big fishes messing around.

What do you guys think, is stop loss something or, or not so good?

I think almost all traders agree that stop loss is needed to limit losses.
The problem is,how much the proper Stop Loss?
To determine how many appropriate Stop Loss points are dependent on the trading plan and indicators used by each trader.
And usually the wider the SL range, the higher our level of confidence that TP will be achieved

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Quote from: TheGreatPython on February 24, 2020, 12:39:40 PM

Everybody here loves stop loss so much but stop loss can only slow down your loss whereas if you do not lose it you can literally bleed as much as you can and recover afterwards instead of keep dying every single day. Just die once and recover, much better option if you ask me.

Do not consider for a second that stop loss doesn't have any issues at all, you literally have to make sure you do not get stop loss constantly, if you lose just 1% that is fine and you think it is better to lose that 1% compared to 50% you will lose eventually if you don't use stop loss.

However, reality is if you use stop loss constantly and keep constantly get that 1% stop loss, eventually it will amount to higher than 50% total and you will eventually lose all your money anyway, which would be not a good way to lower the risk.

Who would be the one to set up 1% SL here on crypto space? It would be understandable if it would be used in forex or stocks but for crypto?

This kind of percentage isnt suggested yet price can swing up possibly 5% on daily basis which means your SL can easily be triggered up.So it isnt suggested on setting it up into these levels.

Of course this one is a life saver if you do know on how to use it but i do agree that it do have some sort of disadvantages.

TheGreatPython

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Everybody here loves stop loss so much but stop loss can only slow down your loss whereas if you do not lose it you can literally bleed as much as you can and recover afterwards instead of keep dying every single day. Just die once and recover, much better option if you ask me.

Do not consider for a second that stop loss doesn't have any issues at all, you literally have to make sure you do not get stop loss constantly, if you lose just 1% that is fine and you think it is better to lose that 1% compared to 50% you will lose eventually if you don't use stop loss.

However, reality is if you use stop loss constantly and keep constantly get that 1% stop loss, eventually it will amount to higher than 50% total and you will eventually lose all your money anyway, which would be not a good way to lower the risk.

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Quote from: redigaffi on December 18, 2019, 08:17:05 AM

Hello,

I had this question in mind, since many of my trades with an adjusted stop loss got triggered, but then the market goes in the direction I wanted, but since it got triggered basically im out. I know this is due to big fishes messing around.

What do you guys think, is stop loss something or, or not so good?

Stoploss is important for day traders. The stoploss protects them when unexpected markets fall down. I've used stoploss before, many times I see my stoploss hit, and the market goes up again. This is because I have little idea about trading. So stoploss is just as effective when you set it after proper analysis.

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Quote from: fiulpro on February 23, 2020, 01:26:28 PM

Well I think you need to first analyze how much loss you can handle, if the market goes even 0.1 above it , the you need to realize that you have to get out , it's for the safety only .
Since the trading market is rather volatile and no one knows where it's gonna go next this is something that saved the traders of their own greed.
Therefore I do think that it is a good strategy because otherwise you can get lucky but most of the times you will loose more than you can ever account for .
This is like the basis of trading.

No, it shouldnt really be treated up that way which you do think up on doing gambling rather than thinking up wisely.Of course, risk management thing is prioritize
and setting up stop loss is suggested if you do make some active or short trades but if you are engaged on long term or swing trade aspects then i dont see for these limits
to be used along the way but well it depends on a certain trader though if how much loss level he can handle.I dont see a reason why SL are evil but to be expected
that these limits would easily be hit or eat up when high volatility moments do happen.

fiulpro

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Well I think you need to first analyze how much loss you can handle, if the market goes even 0.1 above it , the you need to realize that you have to get out , it's for the safety only .
Since the trading market is rather volatile and no one knows where it's gonna go next this is something that saved the traders of their own greed.
Therefore I do think that it is a good strategy because otherwise you can get lucky but most of the times you will loose more than you can ever account for .
This is like the basis of trading.

Mumbeeptind1963

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yes stop loss is very important and must be used for traders because the market can not be seen every time so to prevent price movements on the market suddenly crash, this can save from big losses

Loses is part of trading but if you lose a lot its better to stop it and think about the next thing to do like watching the movement of market, so once you trade again you will get inform if its the right time to trade if the market is pumping. Also the reason why experience loses is when they continue to trade without even looked the market situation.

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Quote from: bettercrypto on January 25, 2020, 10:46:50 AM

Quote from: wajik-tempe on January 22, 2020, 02:42:39 AM

Quote from: redigaffi on December 18, 2019, 08:17:05 AM

Hello,

I had this question in mind, since many of my trades with an adjusted stop loss got triggered, but then the market goes in the direction I wanted, but since it got triggered basically im out. I know this is due to big fishes messing around.

What do you guys think, is stop loss something or, or not so good?

It's just depend on how we use it, for me ppersonally it helped a lot with my trading style, i always place a stop loss whenever i entered a trade because i won't waste my time holding coins that already crashed. it's just the same with a knife, people could do cut fruits with it but they also could but their fingers by doing it.

Basically, cut loss strategy is helpful especially when you want to assure every trades. I am also emotional and I want to prevent myself to carry out in trading. Therefore, it will help me a lot to prevent a certain loss.
Actually, it is whom will use the cut loss strategy because there are traders can handle the loss but others prefer to limit their position.

in trading using a cut loss strategy will be more useful because one way to do risk management.
So we are thinking of bad too, but there are other ways like having a limit or making regular buy to minimize risk compared to cut loss

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Quote from: wajik-tempe on January 22, 2020, 02:42:39 AM

Quote from: redigaffi on December 18, 2019, 08:17:05 AM

Hello,

I had this question in mind, since many of my trades with an adjusted stop loss got triggered, but then the market goes in the direction I wanted, but since it got triggered basically im out. I know this is due to big fishes messing around.

What do you guys think, is stop loss something or, or not so good?

It's just depend on how we use it, for me ppersonally it helped a lot with my trading style, i always place a stop loss whenever i entered a trade because i won't waste my time holding coins that already crashed. it's just the same with a knife, people could do cut fruits with it but they also could but their fingers by doing it.

Basically, cut loss strategy is helpful especially when you want to assure every trades. I am also emotional and I want to prevent myself to carry out in trading. Therefore, it will help me a lot to prevent a certain loss.
Actually, it is whom will use the cut loss strategy because there are traders can handle the loss but others prefer to limit their position.

Asmonist

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Having losses is really a no no. Though losses is part of trading, we must as we can have it stop. Mostly its all about the period of time we wait for certain trade. Of course, there are really days that we tempt to trade it and sometimes regret the next day. Most likely losses is not good for trading so better not trade so fast as much as possible. Its quite hard and challenging though.

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Quote from: coinfinger on January 25, 2020, 02:24:14 AM

Quote from: redigaffi on December 18, 2019, 08:17:05 AM

Hello,

I had this question in mind, since many of my trades with an adjusted stop loss got triggered, but then the market goes in the direction I wanted, but since it got triggered basically im out. I know this is due to big fishes messing around.

What do you guys think, is stop loss something or, or not so good?

Maybe you didn’t set the stop loss the way you’re meant to set it. You shouldn’t be setting your stop loss at random levels, you should be setting it in a position that will allow some fluctuation, that means you have to put it below the swing low, which what you have just explained here : the price of Bitcoin or any other cryptocurrency you’re trading can fall and also bounce back, that’s why you have to make sure you’re following the trend.

Making use of stop loss is not really as easy as some think it is , I have seen a few people complain the same about missing out after their stop loss cancel our their order.

Well it's always better to miss out than to lose big. That's what this feature prevents. It gives you cushion to stay alive for another day. I've had experiences when the price of the coin shoots up after the value hit my sl level. It's part of trading. You won't be able to know anyways when the movement will go up. Always better to be safe than sorry.

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Quote from: redigaffi on December 18, 2019, 08:17:05 AM

Hello,

I had this question in mind, since many of my trades with an adjusted stop loss got triggered, but then the market goes in the direction I wanted, but since it got triggered basically im out. I know this is due to big fishes messing around.

What do you guys think, is stop loss something or, or not so good?

Maybe you didn’t set the stop loss the way you’re meant to set it. You shouldn’t be setting your stop loss at random levels, you should be setting it in a position that will allow some fluctuation, that means you have to put it below the swing low, which what you have just explained here : the price of Bitcoin or any other cryptocurrency you’re trading can fall and also bounce back, that’s why you have to make sure you’re following the trend.

Making use of stop loss is not really as easy as some think it is , I have seen a few people complain the same about missing out after their stop loss cancel our their order.

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From the word itself, you can get the roots from it.

Stop loss is a very great of help when you're away from your PC to monitor your trades. It's actually a life saver and I don't see it as evil, how do you say so?

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Quote from: Apened on January 23, 2020, 08:35:26 PM

Quote from: wajik-tempe on January 22, 2020, 02:42:39 AM

It's just depend on how we use it, for me ppersonally it helped a lot with my trading style, i always place a stop loss whenever i entered a trade because i won't waste my time holding coins that already crashed. it's just the same with a knife, people could do cut fruits with it but they also could but their fingers by doing it.

Its a literally a must stop loss will help us going back to trade even we loss some amount because of it what matters is we protect our capital to be in a huge loss. We can trade in other day or week if we want to and recover that loss a proper setting of stop loss will save our emotions and capital. Its not an evil you just need to know where to place it with a risk management.

This is exactly important! There are lot of new people start to trade but they still don't know how to use stop-loss and they believe that their trades are always correct or will go to their take profits area or target price.

Well, a lot of trading experience this that STOP LOSS is not important (especially me before when I started to trade). At the end of the day, they will realize how stop-loss is really important, especially when you are doing margin trading or those trades that have leverage.

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