The psychology of stoploss | Bitcointalksearch.org

wxa7115

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Quote from: markdario112616 on October 13, 2021, 11:04:53 AM

This is one of the best tools out there, and one of the easiest thing to learn but the hardest to implement. Well to be honest, I'd find it very challenging at first. I've struggled a lot in terms of trying to use the stoploss. But the fact I'm eager to regain my losses it turned out to be a disaster. After that I'd humbly surrender to it, I practiced stop loss for months fighting of frustrations and everything. But yeah bottom line is that no matter how good you are, we may still encounter even one mistake and all will crash. So yeah learn not to trade with emotions that will surely be not a good idea.

This is exactly why we use a stop loss, no trader is perfect and it does not matter how good you are eventually you will make a mistake, now you may be lucky and the market does not go strongly against your prediction and you lose only a small amount of money.

However what if your prediction was completely wrong and a huge movement begins to take place against your prediction? That single mistake can be more than enough to lose weeks, months or even years of efforts, and a stop loss is there to act as your safety net so this does not happen to you.

arbifahrozy

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Simply you can understand from the name of stop loss, that it means you can stop your more loss by applying it , in other words I can just say that this will be more profitable for the traders, who are mostly involve in the day trading and doing their trading mostly in less time and want to get more and more profit at that time they can use stop loss, which can help.

markdario112616

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This is one of the best tools out there, and one of the easiest thing to learn but the hardest to implement. Well to be honest, I'd find it very challenging at first. I've struggled a lot in terms of trying to use the stoploss. But the fact I'm eager to regain my losses it turned out to be a disaster. After that I'd humbly surrender to it, I practiced stop loss for months fighting of frustrations and everything. But yeah bottom line is that no matter how good you are, we may still encounter even one mistake and all will crash. So yeah learn not to trade with emotions that will surely be not a good idea.

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Quote from: wxa7115 on October 12, 2021, 03:14:24 PM

Quote from: TelolettOm on October 06, 2021, 06:30:10 PM

I never think that stop loss be a challenge, I just set it because I need it to manage the loss and also risks that I am probably getting while trading in the future (mostly).
And about trading in spot, I only a few times also using SL, moreover if it is a good or top coins, I will prefer to wait for increasing price. But once more, it doesn't mean that never using SL for a spot. Sometimes, it is also good to use SL because I want to manage the funds in order to ensure to lose small and then get another chance in another trading

It is great that you do not find this challenging but believe me many people do not like to use a stop loss, they feel their potential profits could go down by the use of a stop loss and in a way they are not wrong.

However trading is not only about maximizing your profits, trading is also an exercise on resource management, and since our capital is limited if we trade as if it is infinite sooner or later it will run out, a stop loss is there to protect you from this ever happening and as such it is an invaluable tool in the arsenal of any trader.

Even myself doesn't really make use of stop loss because it isn't really much needed if you aren't really making out active trades or simply stick with long term or swing trades.

But doesn't mean that it would be just good for short term or active trades but this stoploss is really situational so it would really vary if someone would really be needing

on using this tool so its up to someones intellect and experience on how they could handle themselves well on this market.

wxa7115

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Quote from: TelolettOm on October 06, 2021, 06:30:10 PM

I never think that stop loss be a challenge, I just set it because I need it to manage the loss and also risks that I am probably getting while trading in the future (mostly).
And about trading in spot, I only a few times also using SL, moreover if it is a good or top coins, I will prefer to wait for increasing price. But once more, it doesn't mean that never using SL for a spot. Sometimes, it is also good to use SL because I want to manage the funds in order to ensure to lose small and then get another chance in another trading

It is great that you do not find this challenging but believe me many people do not like to use a stop loss, they feel their potential profits could go down by the use of a stop loss and in a way they are not wrong.

However trading is not only about maximizing your profits, trading is also an exercise on resource management, and since our capital is limited if we trade as if it is infinite sooner or later it will run out, a stop loss is there to protect you from this ever happening and as such it is an invaluable tool in the arsenal of any trader.

zaesvlas

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As for me, this tool allows a trader to be more confident in the result of work, even in the event of any mistake in the process of work.

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Quote from: tvplus006 on October 11, 2021, 04:16:00 AM

Yes, it is impossible to trade with leverage without stop loss, otherwise you may lose your deposit due to circumstances independent of you. For example, if you opened an order and did not set a stop loss and an accident occurred at the same moment, which resulted in your equipment becoming inoperable during a dump or pump on the market.

It is possible, why not?

But if you don't use stop loss orders, you are not smart. Without stop loss, your position can be very negative and liquidation will be triggered. Your collateral will be liquidated and switched to the wallet of exchange. It won't disappear but only change the ownership, from you to that exchange.

If a trader does not understand psychology of market and capital flow in the market, it is best to not use leverage.

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Quote from: shield132 on October 10, 2021, 04:02:48 AM

...But if you use leverage trading, stop-loss is mandatory in absolutely any case since it's a very, very risky the higher the leverage gets.

Yes, it is impossible to trade with leverage without stop loss, otherwise you may lose your deposit due to circumstances independent of you. For example, if you opened an order and did not set a stop loss and an accident occurred at the same moment, which resulted in your equipment becoming inoperable during a dump or pump on the market.

shield132

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Quote from: jackg on September 24, 2021, 08:52:21 AM

I've started using alerts instead of a stop loss because people keep mentioning about market manipulation on exchanges and I've been trying to protect myself against that more recently. I'm also one for setting a stop loss that isn't too far away from where the price will rebound up and fulfill my take profit so that's another reason against setting one - though I should probably just set it where I think it's really unlikely to get triggered.

+1
It's what I am doing too, I am using multiple alerts on certain rises and falls because the market is sometimes so manipulative that it falls and immediately rebounds. If you are a long-term trader and don't open short contracts on futures trading + trade with more matured coins, then I think alerts will meet your case.

But when you trade frequently, I think it's better to set stop-loss and use it anyway, it's better than to regret. Sometimes the loss will rebound immediately and sometimes it may take weeks.

But if you use leverage trading, stop-loss is mandatory in absolutely any case since it's a very, very risky the higher the leverage gets.

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Quote from: tvplus006 on October 04, 2021, 03:06:24 PM

Quote from: palle11 on September 24, 2021, 08:44:42 AM

...One benefit is your just loss a little part and you can carry on with your trade, after all trading is about profit and loss. This is a good mentality to succeed...

You cannot use stop loss if you do not have the skills to trade and do not have a trading strategy. A small loss at a stop loss will be only if you open an order in a long position from support or a short position from resistance. Thus, it is necessary to compare the risks and profits from the expected transaction.

You're right, when I was starting in the world of trading it always happened to me that when I reached the stop loss, I didn't take it and what I did was keep losing and losing, I had to go out to the Market, and the loss was worse, then I realized I had to understand well how it worked, how it was put on and under what conditions, of course this happened to me because I was doing things fast and not having traded with play money.

Now when I trade, the first thing I do is set my Stop Loss, whatever it is is my first step for everything.

tvplus006

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Quote from: Natalim on October 06, 2021, 04:41:18 PM

...If you put a stop loss 10% down from the price you bought it, then you are limiting your loss not more than 10%. Still, i don't understand why most of traders forget to set a stop loss where in fact, it's one way of avoiding more losses and just maximize your expected profits...

A common practice is to set a stop loss for margin trading and this is due to the fact that you can easily lose your deposit. But even in cases when the market is very volatile, no stop loss is set, as your order will be closed quickly. But if you don't set a stop loss, then you can't move away from the terminal and sleep peacefully.

barbara44

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I don’t have any problem with making use of stop-loss when it comes to trading, I think it is quite useful when you are making use of it because you are able to limit your losses to an extent. Now it is all up to you to decide how much that your loss will reach before the stop-loss tool will cut it from going further.

For those people that are complaining that it keeps putting them out from trade and making them miss opportunity, I think they have to understand that stop loss was created to help you stop your loss and not to help you make enemies, now it is all up to you to be around at least and make sure that you are checking what is happening on your trade, and when things are not going the right way you can correct them immediately.

Victorycoin

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We always trade with profit and stop loss when we open the trade because the market often moves in huge quantities, if you are not in the market and if the market goes against you, your balance will not take time to run out many of us trade part time. Can't stay close to the trade seen at many important times. As such, it is much better to set up TechProfit but I am not in favor of setting staples. I trade small lots, analyze, trade big charts so I don't need stops.

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Quote from: sumant on September 26, 2021, 05:39:04 AM

The psychology of stoploss is to prevent trader fund from big loss or not wait long months to recover. It is very important in trading to play safe and smart game. Without stoploss anything can happen to your trade. Crypto market is very volatile it can dump to any level. When you use stoploss you will out from trade and not getting in panic for many months.

I'm one of the trader in that stop-loss boat, I hardly make of it because most of the time, it's either I'm glued to the computer or I'm with my phone checking out market market movements and whenever I see that the movement isn't going as planned, I exit the market which is very bad.

The market volatility has drastically reduce compared to. When btc was below $10k, I once a victim of that when my stop-loss never trigger despite reaching the limit, I had to stop the limits and I was lucky the market was bought very fast to my entry position which I just glady exited my self. This is why it's always better to set it a little bit below where you want it.
Stop-loss is very essential in trading and risk management.

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Quote from: palle11 on September 24, 2021, 08:44:42 AM

I'm believing that many traders here don't like using stop loss and the reason is just within our first guess, they don't want the stoploss to take them out.

The reason why out stop loss get triggered in most cases because of two main reasons.

1- We do not take entry at at the support level. If the entry is at or near support, there are chances that the coin will only move up from there.

2- We do not know exactly where to put stop loss. We put stop loss so near to our entry price, that it get filled.

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Quote from: SquallLeonhart on October 07, 2021, 03:21:32 PM

Quote from: Mpamaegbu on October 07, 2021, 06:00:12 AM

Every exit or take profit (TP) level is a psychological level the same way every stoploss (SL) level is. Traders are humans subject to emotions the same way platform and exchange owners are. We know of instances of trade manipulations from exchanges and platforms because their owners follow the same psychological levels traders follow.

I wouldn't really compare all three together. Exit means you exit, doesn't mean you make a loss or not, it could be a loss or it could be a profit, it is just exit, whereas TP is literally taking profit, which means it needs to be a profit, when you lose then you can't TP since there is no profit to take, and stop loss (even though it has a loss word in it) doesn't need to be a loss, you could buy at 40k, it could go to 54k then you could put a stop loss at 50k and end up selling it there when it crashes, so overall you made a profit, the loss in there means stop the continuous loss that may happen if it is not stopped, even profit loss included. So all three are not the same thing, there are small differences.

From those terms alone then you could actually tell on what it is, don't make out complicated things just because those terms are just really easy to understand.

Application of those will vary on someones experience and skills.It might be simple as it sounds but making out decision on when it should really be applied on is never been easy.

SL's does have particular or exact time for you to make use off and this is where people do differ.

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Quote from: Mpamaegbu on October 07, 2021, 06:00:12 AM

Every exit or take profit (TP) level is a psychological level the same way every stoploss (SL) level is. Traders are humans subject to emotions the same way platform and exchange owners are. We know of instances of trade manipulations from exchanges and platforms because their owners follow the same psychological levels traders follow.

I wouldn't really compare all three together. Exit means you exit, doesn't mean you make a loss or not, it could be a loss or it could be a profit, it is just exit, whereas TP is literally taking profit, which means it needs to be a profit, when you lose then you can't TP since there is no profit to take, and stop loss (even though it has a loss word in it) doesn't need to be a loss, you could buy at 40k, it could go to 54k then you could put a stop loss at 50k and end up selling it there when it crashes, so overall you made a profit, the loss in there means stop the continuous loss that may happen if it is not stopped, even profit loss included. So all three are not the same thing, there are small differences.

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Quote from: TelolettOm on October 06, 2021, 06:30:10 PM

I never think that stop loss be a challenge, I just set it because I need it to manage the loss and also risks that I am probably getting while trading in the future (mostly).
And about trading in spot, I only a few times also using SL, moreover if it is a good or top coins, I will prefer to wait for increasing price. But once more, it doesn't mean that never using SL for a spot. Sometimes, it is also good to use SL because I want to manage the funds in order to ensure to lose small and then get another chance in another trading

Not a preeminent challenge but it's also not one that many people like to set up because stop loss is a criterion of admitting failure, our assets that are growing big will turn small, one more rule in trading is that the loss figure will be symbolic and not officially counted in our assets when we do not have stop setups, more precisely, the losing price is just a number that will be updated regularly, addition and subtraction are daily happenings. Traders hate such a symbolic loss, they love to win and are stubborn about losing, not believing the market will be like that.

Dewi Aries

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Most of my time is in front of computer, maybe stop loss for me is when i'm sleep. Not want to said that i confident with my trading style, but to be honest amount that i use in future trading is really small, and people maybe laugh at it. But that is time i use stop loss, because when i sleep i can't control market, and for me i prefer to set SL and TP because not want to miss a moment or maybe lose all and get liquidated.

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Never got into trading except when I need to, and then spot markets is just where I go... Although am not averse to setting limit orders very near the spot if I am not in a rush, just really because the fees tend to be a lot better for maker. But when I dabbled in forex in the mid 2000s every order had a stop loss, trailing even if going long. Can't really get why anyone would trade without that safety net.

I do imagine Bitcoin volatility makes it even harder to decide as stop losses that are too tight are liable to hit in any condition.

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