Stop Loss influence in massive dump | Bitcointalksearch.org

trigger1975

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Quote from: Little Mouse on February 22, 2021, 12:15:49 PM

I just have realized that stop loss order have a significant influence on massive price decrease.
If a crypto is currently trading at $2, and someone has a stop price of $1.8, selling at $1.79. See, when the price hit $1.80, you are forcing the price to go lower. And same happens in the stop market option too. As you are selling at market best price.

Well, that's supply and demand 101. That's why some traders focus on stop-hunting and it's true not only for cryptos but for every asset: Forex, Stocks, … Indeed a triggered stop order does influence the price even more, the less liquidity is in the particular market.

Nevertheless: stops might get triggered and turn around at very that spot … That's the reality of trading. Review your trades and check if you might position your stops too close to a significant area (support/resistance area, trendline, …) and if you can safely widen the stop without increasing your risk too much for your next trades. But my rule #1: never open a position without a stop and my rule #2: when a trade is active, I'm only allowed to narrow a stop, but never, never, never ever widen the stop.

Nahratsak

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Yes, sell stop-loss orders decrease the price more but sometimes they are necessary especially when you trade BTC and expect that a huge dump is coming soon. In all other cases it’s easier to use simple limit orders when you intend to buy on low and to sell on high.

tbterryboy

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Quote from: Untomabur on March 17, 2021, 06:25:41 PM

Of course it is very influential, if there is a dump then you will be safe, for example if you put your stop loss at -5%,
and when it happens dump it is at -20%, then your money will be safe from another -15% loss, of course it can.
give you a new asset again when you buy back later, even though the stop loss looks useless, for me stop loss is very important at a certain time

Stop loss is never useless, there is a reason why there is stop loss and it describes itself already.
Some people and their greediness, that’s what makes them feel like stop loss is useless.
Just because you used stop loss for once and then you ended up missing a little opportunity doesn’t mean it is useless.

There are times like you have said, when the loss will be too much, but those who are making use of the stop loss feature will have their ass saved from too many losses, but those who don’t have it on will lose way more. That’s just how it is, there will always be both sides, and you just have to know how to use it properly.

tbct_mt2

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Quote from: Traderbtcc on March 22, 2021, 03:23:11 PM

The influence of stop during massive dump is so unappreciated, cause it helps a trader not to Lose all the money whenever there's a flash crash in price, only noob traders would trade without using a stop loss, after a few losses during my first time trading I started using stop loss and so far I no longer lose too much just maybe 1—4% of my initial capital would in that trading, it's always important to set a stop loss whether you are a day trader or a swing trader stop loss will help save your portfolio.

Sometimes stop loss orders will fail if the market crashes too fast and exchanges fall into superb lags. Stop market orders are helpful to trigger the stop loss orders and if you set that order type appropriately, your position will have more time to be filled in crash market.

The gap between stop loss and stop market orders need to be not too small to have effects.

Anyway, with any type of orders, you should set price for your orders at different price, to increase probability to be filled up all.

Traderbtcc

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The influence of stop during massive dump is so unappreciated, cause it helps a trader not to Lose all the money whenever there's a flash crash in price, only noob traders would trade without using a stop loss, after a few losses during my first time trading I started using stop loss and so far I no longer lose too much just maybe 1—4% of my initial capital would in that trading, it's always important to set a stop loss whether you are a day trader or a swing trader stop loss will help save your portfolio.

ScamViruS

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Stop lose should be set at a price that is a little above your capital but not up to you previous sell price, in that way your capital is safe and you end up with a minimal risk of losing your entire gain, stop lose can be set a little below the resistance level of the coin you are trading in so in the situation where the market is dumped drastically you still have your funds to fall back on and buy from the deep.

Most new traders are not interested in using stoploss because they do not know much about it. Proper use of Stoploss can save you from huge losses which creates another opportunity for you to buy those coins from the market at a lower price.

But in some cases, you may have another regret for using stoploss, because many times it is seen that the coin that you bought has hit the price at which you set stoploss and pumped again. By doing this you will miss a big kind of profit and will create a regret.

Golftech

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Quote from: XZERO1 on March 22, 2021, 11:13:33 AM

Quote from: Little Mouse on February 22, 2021, 12:15:49 PM

I just have realized that stop loss order have a significant influence on massive price decrease.

Well, that is true and that is one of the reasons behind those red wicks down that you often see on trading pairs, that and someone selling in large are responsible for huge decrease in price whether it's just temporary or it's going to continue bringing the price down.

Market makers often even count for stop-losses when they're going to decide when and how much the price should go down or even up, since many people these days use bots for trading which automatically places stop-orders when picks up a trade, it happens often that market makers push the price down just merely to make those bots trigger to sell so that they buy in those low ranges with their open orders.

Reality happened, those manipulators bring the value down placing those traders who uses bot to lose their money, a lots of

traders suffered from this kind of actions but it's really tough to predict how dip the price will go down as not even a good signal

indicators can accurately detect the actual value when the market are bot hyping and falling, most of the time, traders are being

forced to setup stop and loss only to find out that the bounce will happen after triggering your position.

XZERO1

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Quote from: Little Mouse on February 22, 2021, 12:15:49 PM

I just have realized that stop loss order have a significant influence on massive price decrease.

Well, that is true and that is one of the reasons behind those red wicks down that you often see on trading pairs, that and someone selling in large are responsible for huge decrease in price whether it's just temporary or it's going to continue bringing the price down.

Market makers often even count for stop-losses when they're going to decide when and how much the price should go down or even up, since many people these days use bots for trading which automatically places stop-orders when picks up a trade, it happens often that market makers push the price down just merely to make those bots trigger to sell so that they buy in those low ranges with their open orders.

leea-1334

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Quote from: jaberwock on March 22, 2021, 01:39:41 AM

I used to have a stop loss that was closer to whatever current price was, but I have made good enough profit that bitcoin could be 20k and I would be still in profit so I have changed my stop loss to 20k, so now it would be quite difficult for me to lose money and that is why I am not "using" it per se, but it is still there. If am using it such a low amount and unlikely situation, everyone should be using it, you have to have bitcoin for free to not care about where it will go down or will go up, if you didn't get it for free it wouldn't really matter.

That does seem like a really good way to put it for a holder, but I would still adjust the stop loss to below 20k because it is very possible we will go down below that like every past ATH, where the old ATH does become the floor but not before being broken several times, which 20k has not yet,,,

Do you have a take profit limit as well?

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Quote from: Little Mouse on February 22, 2021, 12:15:49 PM

I had a few stop loss order filled todays dump happened a few hours ago, sadly that's the point from where coin moved up.
I just have realized that stop loss order have a significant influence on massive price decrease.
If a crypto is currently trading at $2, and someone has a stop price of $1.8, selling at $1.79. See, when the price hit $1.80, you are forcing the price to go lower. And same happens in the stop market option too. As you are selling at market best price.
What's your opinion? If there are few stop loss order on certain coins, how does it influence the massive dump? Please share your thoughts.

You do not have to do anything, stop loss is stop loss and you would be fine. I can't believe the people that do not use it, it is one of the best things that could be used, it would allow you to get out of a big dump and you would either buy again from lower, or just stay out if you want to.

I used to have a stop loss that was closer to whatever current price was, but I have made good enough profit that bitcoin could be 20k and I would be still in profit so I have changed my stop loss to 20k, so now it would be quite difficult for me to lose money and that is why I am not "using" it per se, but it is still there. If am using it such a low amount and unlikely situation, everyone should be using it, you have to have bitcoin for free to not care about where it will go down or will go up, if you didn't get it for free it wouldn't really matter.

rosebrand

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Stop loss really helps in cutting loses when there is a massive dump in the market, stop loss is really essential if a trader isn't active to watch the trade closely, if a trader enters a trade the sets his stop loss and Maybe gets busy with something else then the market moves in the opposite direction and gets to his stop loss point immediately the stop loss will eventually cut the loss and close the trade. But it's better not to use stop loss if you are active and also got enough equity, most time when prices hits our stop loss after a little dump then a massive pump will occur, so its better if you got equity then no need for stop loss and also know the coin you trade with, make sure to trade with coin with good potentials.

lixer

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Quote from: tvplus006 on March 17, 2021, 06:20:40 AM

Quote from: Ziskinberg on March 14, 2021, 06:04:46 PM

Stop-loss is the guarantee that you'll be safe from huge losses but I don't think it is a need to do that when we are a full-time trader or when we are facing the computer. Maybe that late reaction isn't long enough for the price to dump 5% or 10% that we might miss...

The presence of a stop loss for a trader is a prerequisite for trading. Of course, there may be unforeseen circumstances that are beyond your control, such as a power outage or a short-term lack of internet. In such cases, if you trade with margin, with a sharp decline in the price, your position will be liquidated by the exchange.

I think stop loss is an automatic thing, so internet outage or power outage should not mean anything, you put stop loss into the system itself not into your computer or something. It means as long as the website continues, you are free to do whatever you want, if that wasn't the case stop loss wouldn't mean anything while you are asleep or eating or outside doing something basically whatever else you are doing as well and not just during periods when there is an outage.

Reality is that there is stop loss in many exchanges and you end up using that for spending time outside of crypto doing whatever you want without problem and that is how you end up getting better, you can be asleep, you can be doing whatever you want, there is zero worry, why? Because you can do whatever you want but that stop loss is there to protect your money for you.

Peanutswar

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If you are trying to trade having a stop loss is one of the most important things you should know because this might prevent losing all of your funds. This is the common mistakes of the people they keep their funds with the exchange or their wallet and just having on their mind that this coin they hold might back from the top and take back their money is they keep holding this around the higher the chance they dig into too much loss. And if you are mentally able to know what's happen you don't even risk all of the money you have. It's better to stop or cut your loss already before taking all of your investments.

ropyu1978

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Stop loss to increase with your loss and good because you can get chance to buy other coin and recovery with your loss on coin before, but many time after stop loss coin back to higher price. I will hold and never put stop loss with spot trading but now for future trading, I believe coin will easy back to higher price when bitcoin keep stable on higher price.

teosanru

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Quote from: Little Mouse on February 22, 2021, 12:15:49 PM

I had a few stop loss order filled todays dump happened a few hours ago, sadly that's the point from where coin moved up.
I just have realized that stop loss order have a significant influence on massive price decrease.
If a crypto is currently trading at $2, and someone has a stop price of $1.8, selling at $1.79. See, when the price hit $1.80, you are forcing the price to go lower. And same happens in the stop market option too. As you are selling at market best price.
What's your opinion? If there are few stop loss order on certain coins, how does it influence the massive dump? Please share your thoughts.

I think Stop loss hunting has become too frequent in crypto market these days. It's bots and computers trading which somehow know how to detect some strong supports along side which most people have put their stop losses. I think these days mental stop losses and seeling only after the candle closes is a better strategy than to put automatic orders be it a buy order or a stop loss order. I have seen a lot of long wicks these days. Moreover with high leverage trading going aroundd these days this thing is profitable for exchanges too so I won't be too shocked to know that Exchanges are colluded in all this too.

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Quote from: Ziskinberg on March 14, 2021, 06:04:46 PM

Quote from: wxa7115 on March 14, 2021, 02:40:10 PM

Quote from: tvplus006 on March 10, 2021, 07:41:55 AM

If you are directly in front of the terminal, there is no need to set a stop loss. Most stop-loss triggers are caused by false breakouts of the level, after which the price is restored. I try to close trades manually if I see that the price is fixed below the support level.

If was trading the markets and I was watching the market action I would still use a stop loss, the reason is that the market can move a lot faster than what you can react, we know this happens with bitcoin all the time with big positive or negative candles.

You need to have your stop loss already in position before the price slips past your selling point and you lose even more money than what you thought you would lose in it, while this may not seem like a big deal over the course of hundreds of trades this quickly adds up to a lot of money.

Stop-loss is the guarantee that you'll be safe from huge losses but I don't think it is a need to do that when we are a full-time trader or when we are facing the computer. Maybe that late reaction isn't long enough for the price to dump 5% or 10% that we might miss.

But anyway, the result of our trades will matter on how we manage to it. Using stop-loss or any strategy might found less effective if we are not going to use it properly.

The problem is that this assumes that a human is going to have perfect reflexes and will watch the markets every single second in which he is trading, but we are humans not computers, you can receive a call, eat something or be distracted by your family and suddenly you realize you have not watched the market for half an hour only to find out the market moved way more than what you thought and now you need to sell for a loss.

Humans are great at problem solving but terrible at monitoring something for longs periods of time, especially if you are watching several markets at the same time, so it is better to save ourselves the trouble and use a stop loss even if you are a day trader.

JooBra

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Quote from: Untomabur on March 17, 2021, 06:25:41 PM

Of course it is very influential, if there is a dump then you will be safe, for example if you put your stop loss at -5%,
and when it happens dump it is at -20%, then your money will be safe from another -15% loss, of course it can.
give you a new asset again when you buy back later, even though the stop loss looks useless, for me stop loss is very important at a certain time

Everyone who is experienced trading in crypto is using stop loss. I used it today for ADA after it dumped so hard after listing on coinbase was live. I used it finished in good profit and it worked good.

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Quote from: taufik123 on March 17, 2021, 10:15:05 AM

Quote from: michellee on March 17, 2021, 08:38:05 AM

-snip-If we want to cut losses, we need to make sure that the price is down too deep, but that will not be easy since we can not accurately predict. But for holders, will still hold their coins even if the price is down, but they will buy more at a low price.

Cutting losses when you're not ready and don't have a buying strategy at the bottom again will be very risky. Cutting losses must be planned in advance, whether to fall deeper or not. If the price continues to rise while cutting losses, it will only lock in losses.

Being a strong holder would be better, but the holder also needs to analyze whether the coin has a good potential to be defended or not. Don't hold onto a coin that has no future developments, it will only be a waste of time.

So maybe we can just hold and buy back more amount at a low price. Most traders cut losses because of the panic to see the price is going down fast. Maybe they need to have patience and not panic and make another plan, especially if the price is not stable.

Analyzing will be the important thing that we should do to find the potential coins, and do not attract to invest in the coin because of the news because we do not know if that is true or not.

Untomabur

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Of course it is very influential, if there is a dump then you will be safe, for example if you put your stop loss at -5%,
and when it happens dump it is at -20%, then your money will be safe from another -15% loss, of course it can.
give you a new asset again when you buy back later, even though the stop loss looks useless, for me stop loss is very important at a certain time

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Quote from: michellee on March 17, 2021, 08:38:05 AM

-snip-If we want to cut losses, we need to make sure that the price is down too deep, but that will not be easy since we can not accurately predict. But for holders, will still hold their coins even if the price is down, but they will buy more at a low price.

Cutting losses when you're not ready and don't have a buying strategy at the bottom again will be very risky. Cutting losses must be planned in advance, whether to fall deeper or not. If the price continues to rise while cutting losses, it will only lock in losses.

Being a strong holder would be better, but the holder also needs to analyze whether the coin has a good potential to be defended or not. Don't hold onto a coin that has no future developments, it will only be a waste of time.

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