GREED Is the only reason
They just want as much profit as they can, and they do not want to lose money because of the stop loss, that is why
Topic: The major reason why suicide traders don’t use stop loss - page 2. (Read 289 times)
I have never used one single stop loss order while I was trading. Instead, I have always believed that from time to time massive 'dumps' do pop up in certain artificially triggered situations, which is why I always used to have very low buy orders waiting on various levels. Ironically, instead of leaving my buy orders open, I withdrew them and then a week or so later, BTC-E tanks from close $700 to $102.
Admittedly, my buy orders (before I withdrew them) were more in the range of $400 at that time, but still, it would result in a quick profit that I missed out on.
Admittedly, my buy orders (before I withdrew them) were more in the range of $400 at that time, but still, it would result in a quick profit that I missed out on.
Trading in forex and stocks is much different in crypto.
If you trade with Altcoins you trust like ETH/XRP will only mean that nothing is loss if you set a price. If your buy orders aren't picked, it doesn't matter you still own the coins and if its picked, you own another coin still. Where as in FOREX there is a margin call which will exit your open position and you loss money.
If you trade with Altcoins you trust like ETH/XRP will only mean that nothing is loss if you set a price. If your buy orders aren't picked, it doesn't matter you still own the coins and if its picked, you own another coin still. Where as in FOREX there is a margin call which will exit your open position and you loss money.
Totally agree with you, crypto is not like stock market and crypto trading definetely is not like jumping out of an airplane. I am better off as I don't use it.
Stoploses very often leads to looses because in this unregulated market coins price can jump -20% in 1s to jump back to its backprice only to eat stoplosses. Atacks on stoplosses happend here every day. If you have possibility i would rather set some kind of allarm or monitor trade with "mind stoploss".
Forex, stock are regulated and -20% jump is not happening. There are also insitutional investors setting huge walls making stoplos attacks less profitable (that makes them happend less often).
-20% sudden jump on forex or stocks market can really be considered as price manipulation which people behind or institutions would be subjective to be investigated but since we are talking here about crypto then those kind of percentage jumps arent rare which it do almost happen everyday,imagine how many coins in the market is being traded those kind of red long candles can really eat up stop losses.Its good to have SL but once its being hit up then its considered as loss compared on having no SL where you can still able to hold of on your current position. Forex, stock are regulated and -20% jump is not happening. There are also insitutional investors setting huge walls making stoplos attacks less profitable (that makes them happend less often).
Forex, stock are regulated and -20% jump is not happening.
Have you really withnessed a very strong news that is very decisive? It becomes very volatile and its effect could be felt through out the week. Sure news cause a very huge jump and can close a big account that is traded without stop-loss.
I show you on picture what i mean by -20% in one minute and back to the same price. My post totaly describes whats are the risk with stoploss and stoplimit. How stoploss wile atacked can turn your portfolio into 1-10% of your investment and how stoplimit could not save you in some circumstances. And it didnt have anything with news. Its just speculative atack on stoplos. Look at picture. Thats why stoploses on crypto has huge risk. I can put here dozens of screens of ataks like that. You only need to set buy order at 1% price and than destroy walls with huge sell order and all stoploses are hitting your offer at 1% of value. Put here 1 atack like that from forex... Thats why on forex stoploses are mandatory beacause there is less risk with stoploss atacks.
BQX BNT and even XLM atack on stoploss. Just 3 finded in 3 min. Thats what im talking about. News has nothing to do with that.
Apart from trading crypto on an MT4, I doubt if any one can use stop loss in his trading on a normal exchange. In crypto, unlike forex trading, stop loss seems irrelevant. You open trade in crypto and hope it goes up you win.
Stop lost is a great strategy and its a must in trading, we know that the market could be unpredictable and can suddenly drop so fast, some people consider stop lost as the act of admitting lose and ready to lost money, but if we used it correctly it can help us to prevent more lost
To prevent the lose,we have to act wisely.Huge reduce in the price of bitcoin and altcoin now.Since their is no negative news about crypto currency.Then why the price is not start to increase.To avoid the price loss we have to hold the bitcoin.We know the price will increase,then why should we have to sell at low price.
Forex, stock are regulated and -20% jump is not happening.
Have you really withnessed a very strong news that is very decisive? It becomes very volatile and its effect could be felt through out the week. Sure news cause a very huge jump and can close a big account that is traded without stop-loss.
Stop lost is a great strategy and its a must in trading, we know that the market could be unpredictable and can suddenly drop so fast, some people consider stop lost as the act of admitting lose and ready to lost money, but if we used it correctly it can help us to prevent more lost
Marketcaps in crypto are lower and coins are easier to manipulate. A lot of profitable traders dont use stops at all...
Stoploses very often leads to looses because in this unregulated market coins price can jump -20% in 1s to jump back to its backprice only to eat stoplosses.
But this is exactly how the market works and that is why the stop-loss orders are made, so that we don't blow up our accounts immediately but to blow that particular proportion we want to lose in a trade as stop-loss.
Imagine what would happen if the stop-loss are not in place and the jump happens?
Im talking about atacks on stoploses.
This scenerio. Imagine where would you sell if you would have stop-loss on it? On the f... bottom with 1/10 of your investment because you order will appear in orderbook after this big order which eat walls and will be realised last on the lowest price set by this guy who attack. Stop-limit could safe you from that but stoplimit wont protect you from this scenerio:
If those red candle was set by 1 huge sell order becouse your order will pop in orderbook after realisation this huge order without realising yours (your stop-limit price will be too high. Thats why its very hard and sometimes very risky to set stoploses on unregulated small market susceptible for stoploss atacks.
Whales also loves to eat stoploses because 90% of investors set it in the same place. Thats why when you are a whale you know execly where huge supply will apear. I bet that now 90% bitcoin traders have stoploss on one of those points : ~6050-6100 or ~5900-5950
Stoploses very often leads to looses because in this unregulated market coins price can jump -20% in 1s to jump back to its backprice only to eat stoplosses.
But this is exactly how the market works and that is why the stop-loss orders are made, so that we don't blow up our accounts immediately but to blow that particular proportion we want to lose in a trade as stop-loss.
Imagine what would happen if the stop-loss are not in place and the jump happens?
If you are familiar with the market, you don`t need stop loss orders.I was having negaitve experience with stop loss orders,when I was trading on eToro 3 years ago.I was young and newbie trader and all my trades where red,because of the stop loss orders.I recommend using stop loss,only if the market is in a bullish trend.
Trading in forex and stocks is much different in crypto.
If you trade with Altcoins you trust like ETH/XRP will only mean that nothing is loss if you set a price. If your buy orders aren't picked, it doesn't matter you still own the coins and if its picked, you own another coin still. Where as in FOREX there is a margin call which will exit your open position and you loss money.
If you trade with Altcoins you trust like ETH/XRP will only mean that nothing is loss if you set a price. If your buy orders aren't picked, it doesn't matter you still own the coins and if its picked, you own another coin still. Where as in FOREX there is a margin call which will exit your open position and you loss money.
Stoploses very often leads to looses because in this unregulated market coins price can jump -20% in 1s to jump back to its backprice only to eat stoplosses. Atacks on stoplosses happend here every day. If you have possibility i would rather set some kind of allarm or monitor trade with "mind stoploss".
Forex, stock are regulated and -20% jump is not happening. There are also insitutional investors setting huge walls making stoplos attacks less profitable (that makes them happend less often).
Forex, stock are regulated and -20% jump is not happening. There are also insitutional investors setting huge walls making stoplos attacks less profitable (that makes them happend less often).
Note: This article shows why the use of stop loss is 100% mandatory, despite what suicide traders (who call themselves professionals may say). This article comes from someone with over 60 years of experience in various financial markets.
Would you ever think of jumping out of an airplane without a parachute? Of course not, but that's what some people do when they trade the markets. They are very willing to put their money on the line, but they don't have much to protect them from a major disaster. Placing a stop, for example, can prevent you from allowing a small loss to turn into a big one, but many traders avoid placing stops. Why do some traders take risks by not placing stops? It can be difficult to know where to place a stop. If you fail to account for volatility, you will get stopped out too soon. Other people are afraid to place stops. Placing a stop requires you to consider the worst-case scenario, and to many, it's difficult to consider failure. It's easier to deny the potential problem, and to pretend it will not possibly happen. Many experts, however, suggest placing stops. They know that nothing is certain when trading the markets. They view protective stops as a kind of insurance policy that prevents a catastrophic loss.
One seasoned trader I talked to, says "I never take a trade without knowing my stop. When I take a trade, I'm pretty convinced it's something worthwhile. I've already figured out my stop. I've accepted the (potential) loss before I ever clicked the button or made the call. So if it starts going against me, I don't feel a flood of emotions." For that trader, stops not only protect him from losses, but they help him control his emotions. Stops give him a feeling of security, and allow him to feel calm and relaxed.
Experienced traders may use stops all the time, but even the most experienced traders have difficulty following them. For example, one trader I know, admits, "I've blown stops and it's painful. The weird thing is that money does not seem to be driving it. Afterwards, I sit and try to analyze the incident. I certainly knew better. I believe trading is something of a self-journey. It involves learning about your character, your self-control, and your ego."
Still another trader also admits he blows his stops: "Sure. That happens all the time. There's nothing I can do about it. That's one of challenges that continue to engross me. Do you hold them or do you fold them? If you fold a long position and prices go up, you get angry because you made a mistake. If you hold a long position and prices go down, you become angry again. Nevertheless, you have to stay focused on what's going on and learn from the experience and try to apply it to the future. You're going to take your lumps in the market."
Even though stops are difficult to set and difficult to keep at times, they are an essential component of risk management. Losses are commonplace in trading. As hard as it is to focus on losses, they are impossible to avoid. Rather than avoid thinking of the worst-case scenario, face it head on. Figure out what could go wrong and where you can place a stop to protect you from a huge financial loss. In the long run, you'll find you will limit losses and trade more profitably.
Author: Joe Ross
Source: TradingEducators.com
The note below ends this piece.
“So, what is a trader to do? Well, one of the things to do is to re-evaluate the way you envision the markets and your relationship to loss. What you want to develop is an I don’t care attitude regarding your trading. You must look at the markets as being exactly what they are, totally unpredictable.
No matter how good a level looks, it is not a foregone conclusion that any particular outcome is definite. What we look for is the high probability trade. There are times when the probability may get very close to 100%, but no matter how close it gets it can never be 100%. This means that whenever you enter a trade you must embrace it as a possibility for loss. When you do this, it detaches you from the loss potential because you are prepared for it.
Of course, you already have begun this process whether you realize it or not. You have put in a hard stop! This is imperative. The stop’s first and main job is to protect your capital. If your capital is gone you cannot trade, so it follows that this is the most important part of your trading; and, of course it is derived from an appropriate risk calculation.” – Dr. Woody Johnson (Source: TradingAcademy.com)
www.tallinex.com wants you to make money from the markets.
Would you ever think of jumping out of an airplane without a parachute? Of course not, but that's what some people do when they trade the markets. They are very willing to put their money on the line, but they don't have much to protect them from a major disaster. Placing a stop, for example, can prevent you from allowing a small loss to turn into a big one, but many traders avoid placing stops. Why do some traders take risks by not placing stops? It can be difficult to know where to place a stop. If you fail to account for volatility, you will get stopped out too soon. Other people are afraid to place stops. Placing a stop requires you to consider the worst-case scenario, and to many, it's difficult to consider failure. It's easier to deny the potential problem, and to pretend it will not possibly happen. Many experts, however, suggest placing stops. They know that nothing is certain when trading the markets. They view protective stops as a kind of insurance policy that prevents a catastrophic loss.
One seasoned trader I talked to, says "I never take a trade without knowing my stop. When I take a trade, I'm pretty convinced it's something worthwhile. I've already figured out my stop. I've accepted the (potential) loss before I ever clicked the button or made the call. So if it starts going against me, I don't feel a flood of emotions." For that trader, stops not only protect him from losses, but they help him control his emotions. Stops give him a feeling of security, and allow him to feel calm and relaxed.
Experienced traders may use stops all the time, but even the most experienced traders have difficulty following them. For example, one trader I know, admits, "I've blown stops and it's painful. The weird thing is that money does not seem to be driving it. Afterwards, I sit and try to analyze the incident. I certainly knew better. I believe trading is something of a self-journey. It involves learning about your character, your self-control, and your ego."
Still another trader also admits he blows his stops: "Sure. That happens all the time. There's nothing I can do about it. That's one of challenges that continue to engross me. Do you hold them or do you fold them? If you fold a long position and prices go up, you get angry because you made a mistake. If you hold a long position and prices go down, you become angry again. Nevertheless, you have to stay focused on what's going on and learn from the experience and try to apply it to the future. You're going to take your lumps in the market."
Even though stops are difficult to set and difficult to keep at times, they are an essential component of risk management. Losses are commonplace in trading. As hard as it is to focus on losses, they are impossible to avoid. Rather than avoid thinking of the worst-case scenario, face it head on. Figure out what could go wrong and where you can place a stop to protect you from a huge financial loss. In the long run, you'll find you will limit losses and trade more profitably.
Author: Joe Ross
Source: TradingEducators.com
The note below ends this piece.
“So, what is a trader to do? Well, one of the things to do is to re-evaluate the way you envision the markets and your relationship to loss. What you want to develop is an I don’t care attitude regarding your trading. You must look at the markets as being exactly what they are, totally unpredictable.
No matter how good a level looks, it is not a foregone conclusion that any particular outcome is definite. What we look for is the high probability trade. There are times when the probability may get very close to 100%, but no matter how close it gets it can never be 100%. This means that whenever you enter a trade you must embrace it as a possibility for loss. When you do this, it detaches you from the loss potential because you are prepared for it.
Of course, you already have begun this process whether you realize it or not. You have put in a hard stop! This is imperative. The stop’s first and main job is to protect your capital. If your capital is gone you cannot trade, so it follows that this is the most important part of your trading; and, of course it is derived from an appropriate risk calculation.” – Dr. Woody Johnson (Source: TradingAcademy.com)
www.tallinex.com wants you to make money from the markets.
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