Topic: Stop Loss influence in massive dump - page 4. (Read 634 times)
Cryptocurrency is not all about buying and selling of coin lots of people believe they are in profit already after buying a coin and they can't lose there money. but when it comes to cryptocurrency anything can happen you can lose all your funds to a coin you can't trust any coin anything can happen, after buying a coin the first thing you have to do is to set your stop lose to avoid lost of your fund. When ever it comes to cryptocurrency anything can happen at any time and is better for you to lose 5% of your fund than you losing 80% of your funds that's why stop lose is very important. Some people don't believe in stop lose they believe is just a trap, everybody has his or her own method that works for them so I won't also say people that oppose stop lose are also wrong but me personally I really believe in stop lose and I will advise everyone to always use it after buying any coin.
I don't see it as you contributing to a massive dump.
When more people set their stop loss to protect themselves from further loss it helps the panic sellers to come into play which increases the dump. Simply selling more than buying will help the coins to go lower it happens all of a sudden in huge rate then everyone want to save themselves than thinking about market. isn't it? 
You're just protecting yourself when you do stop loss.
As for the massive dump, I don't think that it's massive when you're putting yourself into stop loss. In that way, you're just avoiding to lose further if the market goes side ways.
I don't see it as you contributing to a massive dump.
As for the massive dump, I don't think that it's massive when you're putting yourself into stop loss. In that way, you're just avoiding to lose further if the market goes side ways.
I don't see it as you contributing to a massive dump.
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.
You always have to make a difference between placing a stop-loss order in a bull and bear market, as of now we can go as low as $30k and still be bullish mid/long-term, so keep that in mind while creating a stop order for your trade
Basically it's smarter to place your stop-loss order on lower prices in a bull market and on higher prices in a bear market, also technical analysis comes handy while placing stop-order in these kind of situation since you can draw some lines on chart and figure out where is the best place that you could place your stop-order that assures you that your order won't get hit unless when it really wants to go all the way down, it does not guarantee that the price stays lower than your exit price but at the very least makes it less likely.
Stop-losses do have some added selling-side pressure due to the obvious reason that you're ending up selling your position, but when talking about higher liquidity coins such as BTC and ETH, it's a pretty safe assumption that it has a really minimal effect. Taking into consideration that while the stop-losses of some traders are getting triggered, buy offers of some traders near that certain price are going to get triggered as well.
Its hard to tell since not everyone have their own stop loss level, and some are just playing around the market especially the whales. This pullback is big, and this is not just an ordinary stop loss level because the price broke many support level. I personally sold during my stop loss level, because for me I can’t stop the market from dumping if I still hold into it, there are times that you need to sell and take profit, its time for that.
Large players deliberately move the price towards a large accumulation of stop-losses in order for the price to accelerate downward as a result of massive triggering of these orders. You see, it can be compared to a room with many charged mousetraps. It is worth throwing a pencil on the floor, as one mousetrap works, bounces, makes another work, the third one, and so on. A chain reaction begins. As a result, the price will not stop moving until all nearby stop losses are triggered.
In general, stop loss recommendations are in the 5-10% range of capital, so the highest sell order originating from the stop loss is only in the area of decline of up to 10%. Don't ignore that trading bots are still doing their part. The massive dump occurred because the volume of buy orders globally was lower.
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.
Which price do you set up your stop loss order?Your stop loss orders would be set up at the price much higher than the nearest strong supports you define from chart.
It would be a price a bit lower than strong resistance that if is rejected, price will be fallen back. It would be your entry price. Stop loss does not mean stop loss eventually, it is to stop your position, and the best is stop at price that can 100% protect your capital.
Better, it would be a price can help you to get small profit and exit your position.
You probably set up your stop loss at strong support price and sure price will bounce back strongly.
Stop loss order is very important for someone not to lose much during abrupt price drop. I think this question is like saying can fire burn a house? Yes fire can burn a house. Stop loss will not do anything than price drop. With this current price drop, traders are mostly responsible for it, many of the trader have learned how stop loss is very important and do not play with it. That is why the price will drop from one stop loss set to another, but at that point, it is also in conjunction with people selling also without stop loss. Stop loss order and selling market order do responsible for price drop both together.
legendary
Activity: 2156
Merit: 2100
Marketing Campaign Manager |Telegram ID- @LT_Mouse
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 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.
Jump to: