Topic: The psychology of stoploss - page 3. (Read 391 times)
Stop loss is part of risk management, but with various market manipulation issues, it makes me less confident in applying stop losses, in fact their effectiveness cannot run normally. Experienced traders do not make stop loss as the main management to minimize risk. And some of the other strategies they use are based on an analysis of how market forces tend to rise and also based on the laws of the market.
People have not been able to give me any good enough reason as to why they shouldn’t use stop-loss.
I will let you know that, it is simply because they don't want to lose with stoploss. This is the real reason and it is simple.
People who don’t make use of stop-loss usually say it’s because they don’t want to miss the market quick comeback after a slight down movement which I think is not enough reason for you to not make use of a stop-loss when you’re trading.
This excuse is funny. You can activate stoploss even after you have made trading, you can go back to the order and activate it but the problem is the market volatility can hit that order just immediately you went in .
Unless you’re going to be there watching your trade, if not then you’re meant to be using a stop-loss.
No that is a bad pratice. You may not be fast to executive the stoploss. Sometimes you have network challenges.
For newbie traders and more experienced traders, I do also believe you having the dilemma of using or not using stoploss especially when it takes you out frequently but to such, the problem may be with your trading strategy and not stoploss.
Stop-loss is important when you’re being a trader. People have not been able to give me any good enough reason as to why they shouldn’t use stop-loss. People who don’t make use of stop-loss usually say it’s because they don’t want to miss the market quick comeback after a slight down movement which I think is not enough reason for you to not make use of a stop-loss when you’re trading.Unless you’re going to be there watching your trade, if not then you’re meant to be using a stop-loss. There is a reason why these tools were made and they shouldn’t be neglected for anything, they can be helpful at times you least expected it to.
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.
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So what is your challenge to using stoploss?
Having no risk management in trading will get you rekt. Stoploss is one of the best ways to have good risk management.So what is your challenge to using stoploss?
Think about your stop loss as your saviour, your superhero.
It's much better to lose 10% than losing 50% or more, or worst is liquidation (lost them all)
I completely removed the idea of profiting more tbh. I try to adjust my goals to what is realistic, one that I'm very much sure I can achieve in that single trade. Most stop losses I've done was to stop myself from losing against dips and that's it. I don't bother rebuying even when my stop loss gets triggered, I just wait and see what happens then proceed to determine if I should enter or not. It's a rather great tool to have tbh, it's just mostly up to your capabilities on whether it's actually used to its fullest.
The bottom line for my stop loss is 20% of the principal. Stop loss is the basic strategy of regular trading. In the final analysis, it is still desire. If you are greedy enough, I'm sorry, stop loss is not for you, and the one that suits you is Stud.
Lol bro but 20% is way far too much for a stoploss on a single market order. It means you have just splitted your account into 5 places and what happens when you trade the 4th time and lose at a roll? Panic gets into you to trade the fifth time because of the fear of not coming out of it. I have traded with a lot spaced for stop loss because I was scared or didn't like my stop loss to take me out, I even extended and shifted it and yet the price takes me out.
Just identify the trend and if you go with it, you just need a tight stop loss incase of spike. I can suggest like a percent of your balance to stop loss and you see it is a scratch of your account that will be lost if it is against you. Good luck.
The bottom line for my stop loss is 20% of the principal. Stop loss is the basic strategy of regular trading. In the final analysis, it is still desire. If you are greedy enough, I'm sorry, stop loss is not for you, and the one that suits you is Stud.
Stoploss was a safety net if anything happened in the market usually the market is really volatile and as a trader it is my responsibility to take care of my profit. The only challenge in stop-loss I'm thinking of is that when the market just dip to your stop loss and go back to its main trend that happened to me multiple times and of course bullish and bearish traps.
But stoploss was really simple but really effective tool in trading.
But stoploss was really simple but really effective tool in trading.
In my early days as a trader I didn't know how to use the stoploss strategy like one of my worst case scenario was that the project was seem good at the start and I put an amount of money on the project but only few days past the market of the project begun to crash but I do hold on to the thought that the project could recover but ended up I'm losing my money. My friend suggested me to use the stoploss strategy to cut the future losses but I didn't listen to him and my money ended up halve the value has been lost. From that time on I do realize the importance of using the stop loss strategy.
Stoploss was a safety net if anything happened in the market usually the market is really volatile and as a trader it is my responsibility to take care of my profit. The only challenge in stop-loss I'm thinking of is that when the market just dip to your stop loss and go back to its main trend that happened to me multiple times and of course bullish and bearish traps.
Stop loss order only works if the market does not crash too quickly and exchanges don't have technical or connection problems. If cascade effects occur too seriously with crashes, stop loss orders can not help.You have to use another order, Stop limit order.
What is a stop limit order
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But stoploss was really simple but really effective tool in trading.
Stop loss or other orders are simple if you understand it. 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.
In my own situation , I also didn't like that idea of getting to loss to stoploss but my orientation have changed towards that because stop loss is better used than not to be used. 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. If you are in the habit of readjusting your stoploss and take it further, you can stop that because the price can chase you there
For newbie traders and more experienced traders, I do also believe you having the dilemma of using or not using stoploss especially when it takes you out frequently but to such, the problem may be with your trading strategy and not stoploss.
So what is your challenge to using stoploss?
In my own situation , I also didn't like that idea of getting to loss to stoploss but my orientation have changed towards that because stop loss is better used than not to be used. 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. If you are in the habit of readjusting your stoploss and take it further, you can stop that because the price can chase you there
For newbie traders and more experienced traders, I do also believe you having the dilemma of using or not using stoploss especially when it takes you out frequently but to such, the problem may be with your trading strategy and not stoploss.
So what is your challenge to using stoploss?
Stoploss was a safety net if anything happened in the market usually the market is really volatile and as a trader it is my responsibility to take care of my profit. The only challenge in stop-loss I'm thinking of is that when the market just dip to your stop loss and go back to its main trend that happened to me multiple times and of course bullish and bearish traps.
But stoploss was really simple but really effective tool in trading.
Using stop-loss or not will depend on how your analysis. If you think that the price will go down too deep, you can use a stop loss at a certain level so you can prevent the big loss. If you can monitor your trade, you can analyze more to find more info so you can determine to use stop loss or not. Stop-loss can be used based on the market situations, so with more analysis, that will be necessary to use stop loss or still analyze the market to see where the price will go.
It will always depend on that, I personally don't have stop loss level on Bitcoin because I know its more safe to hold on it than to sell it our of panic. Though I have a different approach on my trading activities, stop loss for me are very important in my short term trading, it allows me to minimize my losses and then look for other opportunity to buy. If there's no stop loss every time you trade, how can you know when to exit the market? for me this is very important in trading. 
Yeah this is good piece of advice actually. On the contrary it’s better to either option to use it or you just forget about it completely. Stop loss is life saver in many situations but peeps don’t make use of it in correct way. What I mean is, they will always think they can gain the profit again if the trade has stopped at loss. This means they will re-buy the asset immediately and in the hyper mood. That’s ain’t right and that’s not perfect use of stop loss. The method is used in the first place so that we can control ourselves from overtrading and also controlling the losses. But anyways it always goes to the South Pole. Lolz
Unfortunately it is not the most basic way of trading and that is why people keep forgetting about it. If anyone in the world realized that it is as simple as the buy/sell method and it is just few clicks then they would have used it as well but there are too many people who end up not using it properly and that is mainly because they do not know how to or they never tried to.Anyone who realizes how good it is and tries it for the first time will end up using it for a long time for sure. I am not saying that people are not smart about using it, they are smart enough to use it, but they just do not check it as the first thing, after checking it, almost everyone uses it.
If you are in the habit of readjusting your stoploss and take it further, you can stop that because the price can chase you there
So what is your challenge to using stoploss?
But of course, most often price still runs us to that point and closes us in loss. It's a sad reality and that's because a lot of traders don't like seeing red and would struggle to prevent that loss in futility. If only a lot more traders understand that trading is about profit and loss, some of these stuff will change. Most traders easily understand that part of profit and loss when it comes to conventional and traditional trading but refuse to apply it to online trading. I've been a victim of this too. I think if traders will up their Money Management (MM) skills and reduce their leverage or trading lot, they should be fine finding a good SL position that won't be easily hit by making it an elaborate distance. So what is your challenge to using stoploss?
Using stop-loss or not will depend on how your analysis. If you think that the price will go down too deep, you can use a stop loss at a certain level so you can prevent the big loss. If you can monitor your trade, you can analyze more to find more info so you can determine to use stop loss or not. Stop-loss can be used based on the market situations, so with more analysis, that will be necessary to use stop loss or still analyze the market to see where the price will go.
It will always depend on that, I personally don't have stop loss level on Bitcoin because I know its more safe to hold on it than to sell it our of panic. Though I have a different approach on my trading activities, stop loss for me are very important in my short term trading, it allows me to minimize my losses and then look for other opportunity to buy. If there's no stop loss every time you trade, how can you know when to exit the market? for me this is very important in trading. 
For newbie traders and more experienced traders, I do also believe you having the dilemma of using or not using stoploss especially when it takes you out frequently but to such, the problem may be with your trading strategy and not stoploss.
I do believe only beginners in trading must be having dilemma about stoploss levels but experienced traders definitely will go for it so that they could safeguard their hard earned capital. Still I agree with you, most beginners ignore the importance of using stoploss but over the time they slowly learn and then start making use of it.Moreover when you are having a well tested strategy and that is capable of tackling all kind of market fluctuations to help you to predict and to trade along with the direction of market then definitely you will never need to go for stoploss levels and even you put stoploss orders which may never get triggered.
Using stop-loss or not will depend on how your analysis. If you think that the price will go down too deep, you can use a stop loss at a certain level so you can prevent the big loss. If you can monitor your trade, you can analyze more to find more info so you can determine to use stop loss or not. Stop-loss can be used based on the market situations, so with more analysis, that will be necessary to use stop loss or still analyze the market to see where the price will go.
Stop loss is really a great feature for an occasional trader who is not going to look into the price chart all the time because they are busy with their other job(s), since it is going to save them from huge loss when there is a sudden red trend in the market but one who is doing day trading can avoid it because it will disturb their actual trading habits.
So what is your challenge to using stoploss?
When I choose to scalp I hardly use stop losses and most time I just stay at the mercy of the market but when ever I choose to hold on to a position for a longer Period of time I apply stop loss. Stop loss can be helpful but a times it kicks one out of a trade too early and after triggering my stoploss it begins its move towards my analyzed direction and this alone can be so frustrating
stop loss is very useful in my personal opinion but for other traders they don't see it good to have such technique when it comes trading. I dont know why maybe they all have a plenty of time to monitor their trades wherien in order to keep it safe as well.. And probably it's true that stop loss is for those busy person only to avoid masive losses from the volatility.. Indeed sometimes there are some traders who used bots when it comes stop loss. So we need to understand that it's depends what people's like when it comes trading.
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