Stop Loss in instruments with high volatility is a risky thing. Need to have big stock for position execution. Very often, your order may not be executed due to a sharp and strong price jump.
It's the safest way if we still manage to keep our capital on that coin but if already at loss better trade it. It's a good tool if we think we're wrong on choosing that coin. However, we can do manually stop loss when we analyzed the coins potential, or if there's a possibility for some increases in prices. 
Topic: STOPLOSS? what are Advantages and disadvantages of stoploss? (Read 467 times)
Stop Loss in instruments with high volatility is a risky thing. Need to have big stock for position execution. Very often, your order may not be executed due to a sharp and strong price jump.
Any of you know about stoploss? To what i know, Stop Loss is a type of order to limit losses at a pre-set price. As the name implies, this order is used for the purpose of risk management, preventing the market from happening unfavorably, can still limit losses.
Stop loss are usually placed with a buy / sell order. A stop loss order is placed to limit losses at a predetermined position. Setting a 10% stop loss below the price you bought, will limit your loss by 10%. For example, we have bought gold for 1,000 and put a stop loss at 990. That is, if the market price reaches 990, the order will stop.
But I want to discover more about stoploss, its advantages and disadvantages. Can anyone tell me more about this? Thanks in advanced.
Lol, do you even know what you’re saying? What do you mean by advantages and disadvantages of STOP LOSS? I don’t know, for me, your question is kind of funny. What do you expect us to say as the disadvantage? That it stops you from earning bigger or what? Stop loss it’s just a way for you to prevent loss, that’s it. If you’re looking for something more than that, then I’m sorry to say that you’re wasting your time.Stop loss are usually placed with a buy / sell order. A stop loss order is placed to limit losses at a predetermined position. Setting a 10% stop loss below the price you bought, will limit your loss by 10%. For example, we have bought gold for 1,000 and put a stop loss at 990. That is, if the market price reaches 990, the order will stop.
But I want to discover more about stoploss, its advantages and disadvantages. Can anyone tell me more about this? Thanks in advanced.
Any of you know about stoploss? To what i know, Stop Loss is a type of order to limit losses at a pre-set price. As the name implies, this order is used for the purpose of risk management, preventing the market from happening unfavorably, can still limit losses.
Stop loss are usually placed with a buy / sell order. A stop loss order is placed to limit losses at a predetermined position. Setting a 10% stop loss below the price you bought, will limit your loss by 10%. For example, we have bought gold for 1,000 and put a stop loss at 990. That is, if the market price reaches 990, the order will stop.
But I want to discover more about stoploss, its advantages and disadvantages. Can anyone tell me more about this? Thanks in advanced.
Lol, do you even know what you’re saying? What do you mean by advantages and disadvantages of STOP LOSS? I don’t know, for me, your question is kind of funny. What do you expect us to say as the disadvantage? That it stops you from earning bigger or what? Stop loss it’s just a way for you to prevent loss, that’s it. If you’re looking for something more than that, then I’m sorry to say that you’re wasting your time.Stop loss are usually placed with a buy / sell order. A stop loss order is placed to limit losses at a predetermined position. Setting a 10% stop loss below the price you bought, will limit your loss by 10%. For example, we have bought gold for 1,000 and put a stop loss at 990. That is, if the market price reaches 990, the order will stop.
But I want to discover more about stoploss, its advantages and disadvantages. Can anyone tell me more about this? Thanks in advanced.
Stop loss is very useful in cutting off risk to avoid wiping off the whole account in an event of a bad trade a good trading strategy should have at least a risk to reward of 1:1 with a tight stop loss however due to high volatility of prices in recent times prices do hit stop loss before turning in the right direction while some traders prefers not to use stop loss keeping in mind that despite the draw down the price in most cases returns to its winning ways. I prefers not using a stop loss but trade with a small lot and use a virtual stop loss before closing my trade.
But I want to discover more about stoploss, its advantages and disadvantages. Can anyone tell me more about this? Thanks in advanced.
I think I can tell you more about them
And not just about stop-losses as such because what I say is applicable to virtually everything. Long story short, stop-losses are a tool, and whether they are beneficial or detrimental depends on how you use them, how they fit your trading strategy. Many people would categorically claim that they are a must-have, but it is not so. For example, if you are going to buy something as the price goes down in the way of averaging down your costs, then stop-losses don't make sense as long as things continue to evolve as expected, even if it means the price crashing. In other words, a stop-loss is for an immediate exit if they don't, i.e. in case something happens which you don't expect and are not prepared for. Ultimately, it all boils down to how well you know what you are doing, how well you understand the asset you are trading. In that sense, stop-losses are like an emergency brake to let you out when you find yourself losing control over the situation. And as I said, it is not just about trading as this approach is fully applicable to everything you may encounter in life
Though i don’t really use this everytime i trade because i make sure that i have enough time to focus totally
Confident on trading
Yes, I do this in normal tradings
however when it comes to margin, its a different story
Stop loss is a must, its a part of risk management
else, all funds in an open position might burn
Advantages of stoploss is you can retain the capital you put about investments and saving the chances to loss any value at all.
Disadvantage is if the value of that said Coin/token suddenly grows after that stoploss limit,unless you’re active to adjust the value again then you may profit more
Though i don’t really use this everytime i trade because i make sure that i have enough time to focus totally
Disadvantage is if the value of that said Coin/token suddenly grows after that stoploss limit,unless you’re active to adjust the value again then you may profit more
Though i don’t really use this everytime i trade because i make sure that i have enough time to focus totally
Advantage : no need to track daily active orders. This is especially useful when you are busy with not being able to follow the market for several days.
Disadvantage : can not hit the stop loss point because it is often oscillating.
You should know where your stop is and take profits within 5% - 10% .
Disadvantage : can not hit the stop loss point because it is often oscillating.
You should know where your stop is and take profits within 5% - 10% .
This is so true to me. Stop Loss is very useful if you don't have time to monitor daily with your positions. Disadvantage for me is when your stop-loss is hit and then it bounce back, you cant make a buy order to recover. But its fine since losses are manageable in this way.
it is absolutely true to what you say, and really is very necessary in trading, and that can be avoided in that way.
Putting up stoploss would only depend if you are really conservative on risk management but using that kind of thing here on crypto wont really be much effective yet 10% volatility wont really be that hard which means single price pump or swing would just trigger your stop loss and what would you do next? Chasing up another entry order and trying to break even. If you do make trade openly you would still have the chance for recovery but still risky yet we wont know on how deep would be the negative would go.
If the guy's a short-term trader like the majority of people that seem to be active here, then stoploss is the only way for them to reliably manage their performance on a day to day. It'd be crazy not to act conservative if you trade daily, no stop loss means potentially just holding more and more of your balance in orders, stuck with them and unable to take advantage of new opportunities when they present themselves.
Long term holders, or trades meant to last months, or even weeks, sure. But one or two bad swings and you're just stuck waiting for the tide to turn, unable to do anything else.
It do really depends on how a certain trader will do the trade either short or long-term ones.It is true that once you have set out no stoploss then chances on leaving you hanging is there.
In my opinion you should use stop loss if you don't have enough money so, you can lose all of your money in small move of price without ''stop loss''. Of course having some money doesn't mean you don't need to control it. But in every sense it can save you from the loss. The disadvantage is that you find the right direction of the price, but it prevents you when the direction of the price moves to reverse direction.
Putting up stoploss would only depend if you are really conservative on risk management but using that kind of thing here on crypto wont really be much effective yet 10% volatility wont really be that hard which means single price pump or swing would just trigger your stop loss and what would you do next? Chasing up another entry order and trying to break even. If you do make trade openly you would still have the chance for recovery but still risky yet we wont know on how deep would be the negative would go.
If the guy's a short-term trader like the majority of people that seem to be active here, then stoploss is the only way for them to reliably manage their performance on a day to day. It'd be crazy not to act conservative if you trade daily, no stop loss means potentially just holding more and more of your balance in orders, stuck with them and unable to take advantage of new opportunities when they present themselves.
Long term holders, or trades meant to last months, or even weeks, sure. But one or two bad swings and you're just stuck waiting for the tide to turn, unable to do anything else.
Advantage : no need to track daily active orders. This is especially useful when you are busy with not being able to follow the market for several days.
Disadvantage : can not hit the stop loss point because it is often oscillating.
You should know where your stop is and take profits within 5% - 10% .
Disadvantage : can not hit the stop loss point because it is often oscillating.
You should know where your stop is and take profits within 5% - 10% .
Actually stop loss is very good tool, that provide you to optimize and mange your risks. Of cource there is probability that the price will hit your stop loss, colse your positions and will go higher than it was before it. But I think there will be more advantages through protect your maney in early stage of falling than opening order without stop loss.
Any of you know about stoploss? To what i know, Stop Loss is a type of order to limit losses at a pre-set price. As the name implies, this order is used for the purpose of risk management, preventing the market from happening unfavorably, can still limit losses.
Stop loss are usually placed with a buy / sell order. A stop loss order is placed to limit losses at a predetermined position. Setting a 10% stop loss below the price you bought, will limit your loss by 10%. For example, we have bought gold for 1,000 and put a stop loss at 990. That is, if the market price reaches 990, the order will stop.
But I want to discover more about stoploss, its advantages and disadvantages. Can anyone tell me more about this? Thanks in advanced.
Stop loss are usually placed with a buy / sell order. A stop loss order is placed to limit losses at a predetermined position. Setting a 10% stop loss below the price you bought, will limit your loss by 10%. For example, we have bought gold for 1,000 and put a stop loss at 990. That is, if the market price reaches 990, the order will stop.
But I want to discover more about stoploss, its advantages and disadvantages. Can anyone tell me more about this? Thanks in advanced.
Stop-loss: The Important things in investing and trading is risk management. Setting a stop in my advantage side of it reduces the risk of you loosing it all in trading. The disadvantage is that the stop price could be activated by a short-term fluctuation in a stock's price.
stoploss I think there are more advantages, this is one step to managing our crypto assets. with stoploss we can reduce the impact of losses because we can adjust the possibility of prices falling deeper after being analyzed
Yeah with that you can also buy at a lower price to at least reduce losses but do the analysis first. make sure that prices will continue to decline before you stop losing. don't let you sell your coin when the price has stopped decreasing
The most important of stop loss order is not to allow your account to be wiped out because of the unnecessary price movement against your open position and the disadvantage is that it is possible for price to follow your analysis from the point of the stop loss.
If you are going to leave and cannot monitor the growth of your investment in a exchange site like Bittrex where they offer this kind of function, use the stop loss to protect your investment in any sudden drop of price while you are not in front of your screen or not logged in. This worked for me when I was holding NXT for IGNIS airdrop. As soon as the screen capture already happened, price of NXT dropped like a fly, good thing there's stop loss. I was able to sell NXT at good price.
I haven't tried it yet, bit it seems really an advantage especially at times were on holiday, sometime if I knew I would be off for a week and thinks that coins will continue dropping, even Im loss ,I will just sell it especially if that place have no internet. Any of you know about stoploss? To what i know, Stop Loss is a type of order to limit losses at a pre-set price. As the name implies, this order is used for the purpose of risk management, preventing the market from happening unfavorably, can still limit losses.
Stop loss are usually placed with a buy / sell order. A stop loss order is placed to limit losses at a predetermined position. Setting a 10% stop loss below the price you bought, will limit your loss by 10%. For example, we have bought gold for 1,000 and put a stop loss at 990. That is, if the market price reaches 990, the order will stop.
But I want to discover more about stoploss, its advantages and disadvantages. Can anyone tell me more about this? Thanks in advanced.
Lol, do you even know what you’re saying? What do you mean by advantages and disadvantages of STOP LOSS? I don’t know, for me, your question is kind of funny. What do you expect us to say as the disadvantage? That it stops you from earning bigger or what? Stop loss it’s just a way for you to prevent loss, that’s it. If you’re looking for something more than that, then I’m sorry to say that you’re wasting your time.Stop loss are usually placed with a buy / sell order. A stop loss order is placed to limit losses at a predetermined position. Setting a 10% stop loss below the price you bought, will limit your loss by 10%. For example, we have bought gold for 1,000 and put a stop loss at 990. That is, if the market price reaches 990, the order will stop.
But I want to discover more about stoploss, its advantages and disadvantages. Can anyone tell me more about this? Thanks in advanced.
Jump to: