Topic: STOPLOSS? what are Advantages and disadvantages of stoploss? - page 3. (Read 441 times)
The advantage is right there in the name, it stops losses. As for disadvantages well obviously there's the potential for the market to recover shortly after hitting your stop-loss. The important thing is that you realize a stop loss isn't going to be the best thing all the time, as with anything in trading sometimes it will be the wrong decision but overtime it should minimize losses and in turn lead to maximizing profits.
The only advantage that stop loss could have is when market is in a huge bull run and one decides to FOMO and decides to be cautious in case of any huge drop, would be better to place a stop loss at a slightly lower than buy price, this can be reviewed upwards ask the Bull continues but the disadvantage is that because of the sharp volatility there could be a quick drop that may sell the stop loss and continue with the bull run then one would have been out of the trade just like btc dropped sharply to around $6180 yesterday and made a quick bounce to $6400
But I want to discover more about stoploss, its advantages and disadvantages. Can anyone tell me more about this? Thanks in advanced.
Aside from the advantages you had stated, you could also set a bounced price if you believed after the trigger, it would slightly go upward for a corrections, however more often if you had it mistaken this may result on a non triggered limits which may cause a much loss
Majority of exchanges used the Stop limit feature in order to give you a choice on a stop/limit the possible loss, however, you may also use this to open a position or take the profit trigger options
Stop loss in margin trading is too difficult to estimate, usually if its too tight it may easily hit by a certain wyck fluctuations so a loss in your side is very probable
Stop loss trading is kind of confusing and hard for many traders and even I too not tried them much times but the advantage and disadvantages are nt much in the stop loss trading which is same as the normal trading but we can limit our loss in the stop loss trading but when you make the trading into longer time frame then chance of making money is high.
It's very possible that you analysis about the price was correct, but the value drops and then rises again, if your stop loss was within the drop zone, you are out of the trade, and it could rebound later.
Stop loss is very important when trading, but the hymns factor is more important, endeavour to monitor your trades and make adjustments when necessary.
The advantage of stop loss is as you said, it protects you from losses, or rather minimizes your losses.
Stop loss is very important when trading, but the hymns factor is more important, endeavour to monitor your trades and make adjustments when necessary.
The advantage of stop loss is as you said, it protects you from losses, or rather minimizes your losses.
The advantages and disadvantages are not far from the ideas you already know, that it stops you from making too much loss. But personally, I would say it gives you the opportunity to retain your account so that you can try to regain what you have lost next time.
This is confusing. Stoploss order is not only made immediately you place a buy or sell. It can also be adjusted later when you have already placed the buy or sell order.
Stop loss are usually placed with a buy / sell order.
This is confusing. Stoploss order is not only made immediately you place a buy or sell. It can also be adjusted later when you have already placed the buy or sell order.
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.
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