Stop Loss influence in massive dump - page 2.

michellee

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Quote from: ropyu1978 on March 16, 2021, 08:48:12 AM

Quote from: btc-facebook on March 15, 2021, 09:38:48 PM

Stop Loss is used to minimize losses, small or large time frame must use a stop loss, especially traders who trade many coins at once.
In my opinion, stop loss is very mandatory, especially when trading in the cryptocurrency market, because sometimes the market moves beyond your expectations, the price can fall by more than 30% in a few hours, such as the events of 12 March 2020, the price of bitcoin fell by more than 30%, if at the time it didn't set a stop loss, I believe the loss is very much.

Minimize losses with cut loss its good because many trader always use stop loss when entry some coin, but for holder keep hold and waiting until price back again, I don't have any ideas to cut loss because I am most patient waiting for price back to higher, just if have any urgent then I will cut loss position.

Maybe that will depend on the situation on the market because we do not know if the price will still go down, so maybe we can hold for a while and see what will happen to the market. 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.

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Quote from: Ziskinberg on March 14, 2021, 07:04:46 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.

ropyu1978

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Quote from: btc-facebook on March 15, 2021, 09:38:48 PM

Stop Loss is used to minimize losses, small or large time frame must use a stop loss, especially traders who trade many coins at once.
In my opinion, stop loss is very mandatory, especially when trading in the cryptocurrency market, because sometimes the market moves beyond your expectations, the price can fall by more than 30% in a few hours, such as the events of 12 March 2020, the price of bitcoin fell by more than 30%, if at the time it didn't set a stop loss, I believe the loss is very much.

Minimize losses with cut loss its good because many trader always use stop loss when entry some coin, but for holder keep hold and waiting until price back again, I don't have any ideas to cut loss because I am most patient waiting for price back to higher, just if have any urgent then I will cut loss position.

Ausgewielt

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I think stop loss don't influence massive dump, I always believe that there is the true price of a Coin that represent the power of company behind it. When the coin is undervalued there are some investors who buy it. I am one of those investors who really like to find coins which is undervalued so I can get very good position in trading. I only need to wait for several months until the bad sentiments didn't affect the coins anymore. The key is fundamental analysis, if the company is good then I will buy it's coin.

btc-facebook

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Stop Loss is used to minimize losses, small or large time frame must use a stop loss, especially traders who trade many coins at once.
In my opinion, stop loss is very mandatory, especially when trading in the cryptocurrency market, because sometimes the market moves beyond your expectations, the price can fall by more than 30% in a few hours, such as the events of 12 March 2020, the price of bitcoin fell by more than 30%, if at the time it didn't set a stop loss, I believe the loss is very much.

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Quote from: Negotiation on March 15, 2021, 03:14:13 AM

There will be profit loss in crypto it is better to sell from stop loss to stop the effect of loss on huge dump if the price goes up you can get more profit by selling it is better to study the market from stop loss and sell it if there is a possibility that the price of the currency will go down. Reliable sites are required for stop loss.

What a convoluted way to say: better to specify your exit, regardless of profit or loss, by using stop loss or take profit. Agree, and if you can, use trailing stops then if you aren't ready to give up profits.

With more DEXs now also using it, there's really no reason not to use them anymore. Unless you're hodling like me then of course, you keep it in a wallet and don't check daily anymore:)

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Quote from: Negotiation on March 15, 2021, 03:14:13 AM

There will be profit loss in crypto it is better to sell from stop loss to stop the effect of loss on huge dump if the price goes up you can get more profit by selling it is better to study the market from stop loss and sell it if there is a possibility that the price of the currency will go down. Reliable sites are required for stop loss.

We have to be ready in any situation, stop loss is really needed when the dump occurs, therefore it is very important when we see that the price has started to correct, so that's where we are ready with the stop loss by running the one that has been installed.
But for me, what is the market condition if it is possible to install it will probably also be but I see the market is doing well so it is still far from a big overall dump for the current market.

Negotiation

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There will be profit loss in crypto it is better to sell from stop loss to stop the effect of loss on huge dump if the price goes up you can get more profit by selling it is better to study the market from stop loss and sell it if there is a possibility that the price of the currency will go down. Reliable sites are required for stop loss.

lalabotax

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At the past, I never used stop loss and this made me losing much money and also my coins were still here losing much price. Here, I started to decide to use stop loss to minimize the loss. At this time, I can set the SL in order to manage how much I will lose and then make the funds to move to other coins and make another profit from other coins. I think that it is better than only waiting for the price to increase but in fact, always falling

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Quote from: wxa7115 on March 14, 2021, 03:40:10 PM

Quote from: tvplus006 on March 10, 2021, 08:41:55 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.

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Quote from: tvplus006 on March 10, 2021, 08:41:55 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.

Theb

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Limit/Market Orders are something that you can analyze and see what is the sentiments of the traders holding the asset so you are right there is a big influence in the mind of the traders when they see the buy and sell orders of an asset.

Example scenarios

When you see that the sell orders are a lot of and there is a thin buy order

this only tells us that the ones holding it are selling and barely anyone is interested in buying at the current market value

When you see that there is a lot of buy orders and sell orders are thin

this can be translated to a lot of people are interested in buying while only a few people are interested in selling their position at the current market value

Everything you see even outside the charts of an asset can be translated into something but keep in mind that this can be manipulated by traders or a group of traders as well as they can put int temporary buy and sell orders just to sway the market in their way so you always have to confirm if the orders are really being filled in or not.

bassbity

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Judging from the phrase "stop loss" it is very clear that it is to stop losing our portfolio. so that this method is very important in minimizing large losses. maybe that's a very general definition. Means the stop loss method as a reminder. (maybe what I say is almost the same). However, most of us assume that stop losses are often underestimated, have the intuition that prices will continue to rise and fall, and when our attention is not focused, big losses are inevitable.

Stop loss is a red line to avoid falling into a deep abyss.

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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.

wxa7115

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Quote from: Bitcoin_Arena on March 07, 2021, 06:49:04 PM

Quote from: Little Mouse on February 22, 2021, 01:15:49 PM

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

This is very true. Have you ever wondered by the market dumps massively by 7-10% so quickly as compared to when it's rising?

It's because after a small dump, stoploss orders are triggered in the spot market leading to a chain of triggering other stop losses

I always try to set my stoploss order at some percentage below a good support level because prices tend to bounce off at support levels

True, people need to remember that the overall movements we see on the market are an aggregate of what we do as individual investors or traders, if more people were investors and held their coins for the long term the volatility will be many times lower, but since there are many people out there that want to be traders and are using leverage then this increases the volatility especially when the price goes down.

This is because two factors, the first factor are margin calls which happens when your leveraged trade goes against you and your position is closed, and the second factor is your stop loss which adds liquidity to a market that already has too much and it is why the price is going down.

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Quote from: Little Mouse on February 22, 2021, 01:15:49 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 get what you're saying but stop losses are only placed by people that can't incur further losses, that is when placing a sale stop loss. Whether you place one or not, in my opinion does not reflect the market and it may cause a dump but let's not forget that these stop losses can also be placed for buying orders. Stop losses being triggered one by one where the market can go into a downward tumble, is often when there's low trending volume. Though, ultimately, it depends no the market.

Wawa2013

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I don't agree that stop-losses can lead to massive dumps, because every trader doesn't necessarily use the stop-loss feature. Although many traders
use the stop-loss feature, it is very unlikely that they will set their stop-loss at the same percentage price. Another thing that makes the stop-loss is
not necessarily the cause of the massive dump, because every trader does not necessarily use a stop-loss feature on the same coins. Therefore, for me,
it is very unlikely that the stop-loss will affect a massive dump.

Stedsm

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I believe that if you've got to know correct retracement points, correct order blocks as well as can see whale orders and even volumes, then I believe there's nothing that could get you stopped out unless a sharp move takes place. Check the support areas and if you believe that they're the places where bots take (or shake) out their positions and create a wick to eat the stops below the support, just wait till that area comes because that becomes your buy zone and should be bought there only. Watch for the lower lows from your entry point and then, set your stops there (keep the timeframe low to get correct points) and check resistance areas too, if you believe that the price will fall back, sell it right up there and then repeat it for 2-3 times (like swing trading). Stops only take a hit when the market volume gets exhausted, remember that.

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Quote from: Little Mouse on February 22, 2021, 01:15:49 PM

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

This is very true. Have you ever wondered by the market dumps massively by 7-10% so quickly as compared to when it's rising?

It's because after a small dump, stoploss orders are triggered in the spot market leading to a chain of triggering other stop losses

I always try to set my stoploss order at some percentage below a good support level because prices tend to bounce off at support levels

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Quote from: ubercool on February 24, 2021, 04:57:32 AM

I always felt that stop loss is the main reason for alts to bleed red whenever Bitcoin drops a couple hundred or thousand dollars. The automatic selling of alts will trigger more and more when the prices drop with it. Even a strong buyer will just wash away if the wave is hard. I know that there are lots of investors who use alts as just a means to grow their Bitcoin but putting stop loss all the time is not a profitable way.

Actually my opinion used stop loss only when you are gonna be busy to watch or monitor the price of your trades. Cause there are some whales that can triggered closer range of your stop loss resulting to dumped. Yeah that's the thing about stop-loss, I hate to use it cause when I'm not around and checked it. Damn, the stop loss triggered and the price climb back up. It's like letting your loss prevail which better if you hold and wait for it to climb.

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