Topic: The psychology of stoploss - page 4. (Read 391 times)
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
If you use stop loss, you want to use that order to avoid your decision with emotion.
When the market is unharmful, your mind is more neutral and you can make better strategy for your trade. It is when you calculate and set your stop loss order. If you don't use the order, when market crashes, you will not make decision from your plan and calculation. You will decide with emotion that is not good when you see market crash.
When the market is unharmful, your mind is more neutral and you can make better strategy for your trade. It is when you calculate and set your stop loss order. If you don't use the order, when market crashes, you will not make decision from your plan and calculation. You will decide with emotion that is not good when you see market crash.
Stop loss has great importance in trading. Some peoples did not like stop because they did not want to book small loss and in returns they lost their whole balance. Because there is no that tell's the exact move of coin. We can just predict a coin that it can happens. But if we sit opposite to the market trends then we get loss and we did not know how much loss. So, stop loss is a very good tool in trading. So, please use stop loss in trading to secure yourself from a big loss.
Not all cryptocurrencies are suitable for stop loss. Some speculation coins can set a stop-loss price. The prices of many value currencies will rise after falling. We need more patience and not panic selling currency.
I agree with you, mk4. The usage of stoploss would be dependent on a case to case basis, whatever and whenever it is beneficial and effective to a trader. For instance, there are those who are active traders, holders, going for short-term or long-term, and thus varies with the use of stoploss.
Would really be depending on your needs or on how you do trade because not all would really be that short term traders which stop losses would really be relevant because there a swing traders which doesnt really care on using SL's because whenever they are in negatives then they would just simply held up and wait up for the price to recover.
So its up to someone if they would really be finding it to be that beneficial on their trading or wouldnt really be that much that needed.
To me, it's a risk management tool and I use it always, regardless of how confident I am about the trade. If I made a bad trade and the stop loss got triggered. Well, I count that as a loss and move on to trying to get a win in the next trade without having to lose over 20% of my account in 1 trade.
Most of my stop losses are usually somewhere below the support or above the resistance level, just in case of a price break out.
I also make sure I trade only in trending markets. Sideways market can mess you up
Most of my stop losses are usually somewhere below the support or above the resistance level, just in case of a price break out.
I also make sure I trade only in trending markets. Sideways market can mess you up
There is no wrong or right way of using it, because it will totally depend on the trader's strategy. There might be some short-term drops in price where you think that the drop would be easily eaten up by buy orders hence you wouldn't want to automatically sell. In such cases, alerts would probably be better like jackg said.
In the end, it's totally different for each trader. It ain't binary, not using stop-loss doesn't automatically mean it's a bad idea.
In the end, it's totally different for each trader. It ain't binary, not using stop-loss doesn't automatically mean it's a bad idea.
though I should probably just set it where I think it's really unlikely to get triggered.
Depending but if you take it very far away from where it is likely not be triggered it also means you could be risky too much of your money for that particular trade. Stoploss is usually good when calculated against your trading balance maybe just 1% of your balance or below 1% and you can maximize your profit. But if you take alot of your money out in stoploss and it keep hitting on it, you will be running out of balance. This is part of money management skill.
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Those that don't use stop-loss are likely the newbies in trading. Most experienced traders are using it for their own sake and they know how important and helpful it is for their trades. It's for stoppage further losses and it's very effective if you are an active trader.
But for holders, usually, we don't use stop-loss because we have a long-term outlook on the market. Although we can stop loss as much as we can when we see that it's no longer bearable the losses.
But for holders, usually, we don't use stop-loss because we have a long-term outlook on the market. Although we can stop loss as much as we can when we see that it's no longer bearable the losses.
Stop loss in trading is beneficial in many aspects whether some trader don't like or some don't want to use stop loss but using it gives saves much of anyone's money. As stop loss is the way to keep eye on your trading pairs, As you are also right that trading strategies should be make better but i must say stop loss is also an important way of saving yourself form further loss.
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.
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?
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