Tips for trading strategy in STOP LOSS

Lida93

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Quote from: Sandra_hakeem on September 20, 2024, 04:07:59 PM

How do y'all place a trade at the expense of your pockets? You can seriously rely on how smart you are to çlose a position just about the time it ends? How do you deal with retracements?

I'm asking all of these questions cus alot of people in the comments be acting like they don't really see a need to initiate a stop loss/take profits in any case.
I don't know when I'd decide to rely on candle formations like y'all, considering the volatility of the market and how swift the news can affect and decide changes. I know how much loss i incured when I slept off while my trade was running without these factoids.

Am somewhat sure 99% of those people that says all of that don't really mean or so what they said because they can be very sure of losing money far more than they make by trading under such reckless manner.

Preferably it could be understandable that a trader could decide not to place a TP position as the case may be but not for a SL, especially with futures trading. I'll consider any trade in Futures without an appropriate SL position irrespective of the pairs as gambling with funds. I have had a few swift fall in my trade's that without SL I would have had a blown account, so I wonder how anyone will get comfortable trading without using SL.

CageMabok

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Quote from: Rampagoe004 on September 22, 2024, 05:45:20 AM

Stop loss is often used by many exchanges. There are huge benefits of using this system, one of which is that it will be a protection against trades that suddenly reverse direction. Those who use a stop loss system will no longer continue following market movements and will still lock in and be able to control losses.

It only functions to control the level of loss that can be borne by each trader in the exchange that has this feature. And I think it is indeed good to use for all traders because the target of each trader is minimal losses, but they all definitely want much greater profits. So using Stop loss in order to be able to control the level of loss is something that should be and is also quite reasonable for every trader today because it can really help them on the one hand when the price of the assets they have bought suddenly drops.

Agbamoni

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Quote from: alastantiger on September 17, 2024, 04:00:19 PM

Quote from: Wind_FURY on September 16, 2024, 01:19:31 AM

It's definitely better to make a small mistake with taking a small loss if the trade didn't go as expected, than punishing yourself into holding the position with a bigger loss while waiting for the asset to recover. Your position will either get liquidated, OR you will take the bigger loss because you want the "punishment" to stop. Hahaha.

It'll be better if the market wasn't going to recover but if the market is going to recover, you're better off hodling than selling. To make this decision we have to consider the project that we're trading. For Bitcoin trade, there's a certainty that the market is going to recover and you don't have to sell to minimize your loss when you can hodl and maximize your potential gains. The project that we're trading should decide the decisions we're to make and not to view all the projects as one. Trading altcoins, it's better you sell to minimize losses and reopen the trade later.

Stop loss is a vital option to have when trading and for those traders that are trading without a stop loss, they're taking very big risk as there will be no leverage that they're going to have against the market when it's dumping. Stop loss should be fixed about 10% from your entry price and that's all I can add for now.

You have spoken well. We should always be mindful of the assets we are dealing with. Some assets in this condition will not recover and then the best option then it's to take the available money instead of losing more. But if it is Bitcoin of course we know that the market will retrace back even if sometimes we have to wait for weeks or two. The good thing about it is that there is assurance that we won't lose our assets and there is also hope that we can make a profit once it retraces and gets higher in price.

Indirectly, what we should understand between Bitcoins and altcoins is that altcoins don't require patience at all while trading. Because of the risk and inability to completely trust them. While Bitcoin requires patience to trading because there is trust in it. The choice is ours to make. And at the end of the day whatever choice we make we will take responsibility for it.

OcTradism

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Quote from: jaberwock on September 27, 2024, 03:39:20 PM

The hardest part about focusing is the loss of focus because thats a lot harder to handle. I mean many people try to focus on analysing the economy and they end up losing so much and I think it has to be something that will take a while to arrange and we need to make sure that we are dealing with something that is getting a better result, it shouldn't really matter on the long run, it has to be something that will take a while.

Before trading, they can start with fundamental analysis with macro economy and then the project itself. The next thing to do is determine risk and benefit ratio that means from entry price, they must have two figures, to cut loss price and to take profit price. If ratio of (take profit - entry) / (entry - cut loss) is less than 3:1, it's risky and not recommendable to start that trade.

Some people can do their trade with the ratio is 1:1 but it is more risky and it's not worth to try. Cut loss means you will have actual loss and with the ratio of 3:1, you will have less probability to do a cut loss. Repeat it many times for many trades, you will reduce your loss a lot. If you use 1:1 ratio, your loss in long term will be much bigger.

jaberwock

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Quote from: ethereumhunter on September 20, 2024, 03:18:04 AM

That is why we must always learn more about trading so we can know the situation and also know what we need to do based on the current situation. By learning more about trading, we can test one by one of the methods that we know so we can see which method that may work in the current situation so we can use that to trade. We will have a chance to reduces the losing money in trading because we can analyze better and always trying to prevent the mistake.

Focus is indeed necessary and important when we analyze so we can know the time to enter the market. We can also know how to deal with the risks not to becomes bigger because we will analyze deeper before we make a decision. We must familiar and understand how to trade in the spot trading so that will help us to analyze if we want to try to use futures trading. We must remember that we don't have to use high leverage if we don't have much skills in analyzing because that can make us lose the money.

The hardest part about focusing is the loss of focus because thats a lot harder to handle. I mean many people try to focus on analysing the economy and they end up losing so much and I think it has to be something that will take a while to arrange and we need to make sure that we are dealing with something that is getting a better result, it shouldn't really matter on the long run, it has to be something that will take a while.

I believe that we are going to make money on things that we are going to see and that is why I believe that we are going to see this getting easier the more you do it because veterans can focus a lot easier whereas newbies end up with something that will be hard to focus because they will be hyped and they will make a lot more money that way. So it would be smart decision to just make as much money as you can with what you have and keep getting better and in the end we are going to see this getting a lot better results.

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Quote from: Peanutswar on September 20, 2024, 10:42:14 AM

Stop loss order and take profit is one of the feature most of the exchange have this will serve...

I think that all centralized exchanges and most decentralized ones have similar functions. And those who understand the meaning of Stop loss order and take profit will never trade on such an exchange where these functions are missing. The importance of these functions cannot be overestimated.

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Quote from: RockBell on September 23, 2024, 11:11:21 AM

These features are to make the space safer than just trading without guiding yourself properly because that is exactly what people are used to doing they always want to go the risky way and it will not help you in any way so this is part of the reasons why some of them keep loosing their money because they don't want to follow the procedure just because they want to take a risk and when they dont make any profit they become sad and they will quit and try and discourage people that they have not made any money from trade. not knowing that from the beginning it was all their fault because they knew exactly what instruction to take but they failed to follow because sop lose and tp is a good installed features that help.

Going to aim for a very high profit is what is killing a lot of traders and they will even want to compare their self with other traders people are different but they will tell you that those people started from some were true but they are forgetting the fact that we are different.

You should never compare yourself with other traders, not everyone is the same and the results can't be the same because of that, not in a good way or not in a bad way. Just because you beat someone else, doesn't mean you are better, you could just have better situation in life, or just because you did bad doesn't mean that you are bad, you could had some bad times. I know bad times, I have been living in it for over three years now and I think it's fine to have this type of life troubles without much income, I had trouble trading and investing all through this period and I am fine with it, because I do not compare myself to others.

Just compare yourself to your past self and you will be better, and not even results but how much you know, if you are are a better trader overall, there could still be some bad days and that would be fine, nobody will question it and you should be happy that you are growing as a trader and making some good profits without much trouble as well.

Septex

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Yes, if a trader can follow the above points well while trading, then it is expected that his chances of losing will be reduced a lot. But also keep in mind that no matter what strategy you use, you will still lose money from here. But the most important thing is to never get depressed. Rather spend more and more time here and get to know it better. You must follow how trading actually works and how you can become a successful trader if you adopt different timings and strategies. Otherwise you must give up hope of profit from here.

RockBell

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Quote from: Peanutswar on September 20, 2024, 10:42:14 AM

Stop loss order and take profit is one of the feature most of the exchange have this will serve as a protection of the trader in different purpose like if they don't want to watch the market anymore and let those position cut their trade or serve as a limit of their trade, other people forgot to use this because they keep watching with their trades but again we are aiming for the trade to gain profit now if you think its not ideal anymore why keep holding the position instead the market is volatile possible it make a reverse sweep immediately and instead just a minimal loss you have more than on it.

These features are to make the space safer than just trading without guiding yourself properly because that is exactly what people are used to doing they always want to go the risky way and it will not help you in any way so this is part of the reasons why some of them keep loosing their money because they don't want to follow the procedure just because they want to take a risk and when they dont make any profit they become sad and they will quit and try and discourage people that they have not made any money from trade. not knowing that from the beginning it was all their fault because they knew exactly what instruction to take but they failed to follow because sop lose and tp is a good installed features that help.

Going to aim for a very high profit is what is killing a lot of traders and they will even want to compare their self with other traders people are different but they will tell you that those people started from some were true but they are forgetting the fact that we are different.

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Quote from: Peanutswar on September 20, 2024, 10:42:14 AM

Stop loss order and take profit is one of the feature most of the exchange have this will serve as a protection of the trader in different purpose like if they don't want to watch the market anymore and let those position cut their trade or serve as a limit of their trade, other people forgot to use this because they keep watching with their trades but again we are aiming for the trade to gain profit now if you think its not ideal anymore why keep holding the position instead the market is volatile possible it make a reverse sweep immediately and instead just a minimal loss you have more than on it.

Stop loss is often used by many exchanges. There are huge benefits of using this system, one of which is that it will be a protection against trades that suddenly reverse direction. Those who use a stop loss system will no longer continue following market movements and will still lock in and be able to control losses.

Here, we have one direction in trading, we definitely want to make a profit or profit. With some advice, we can take a wise attitude and a safe system because market movements are very volatile and reverse direction quickly, so we have to be more sensitive in this trading.

passwordnow

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Quote from: Peanutswar on September 20, 2024, 10:42:14 AM

Stop loss order and take profit is one of the feature most of the exchange have this will serve as a protection of the trader in different purpose like if they don't want to watch the market anymore and let those position cut their trade or serve as a limit of their trade, other people forgot to use this because they keep watching with their trades but again we are aiming for the trade to gain profit now if you think its not ideal anymore why keep holding the position instead the market is volatile possible it make a reverse sweep immediately and instead just a minimal loss you have more than on it.

This is very effective. Even you're not a day trader, this is very helpful to those who are just waiting to catch some falling knives *pun intended*.
I mean that buying some lower price and setting it off on the market until it hits. There is no need to pressure yourself into watching the market all day long and at the same time can be used for setting a stop loss for which many are forgetting to use it anymore because they're confident of watching the market and then will only hit those order books when they think that their orders are in danger.

For futures traders, this means a lot to them because this is also helping their pockets getting saved from being liquidated and many don't want to do that. And for the spot traders, you all folks know what to do when you are uncertain with the market. Set around 5% or lower when you can't feel the market and unsure of what's happening, that's already enough stop loss or even 10% will do it just to save you from emotional losing as well.

el kaka22

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Trying to master stop loss is not an easy thing to do and I think we are going to end up with something that will not be that easy and we should consider this as normal without much issues. I know that it's looking like it's a big deal but at the end of the day we are not going to end up with a big loss if we just keep holding as well. Stop loss is something that traders that deal with short term uses, not something long term investors do, long term investors just hold and that's fine but that doesn't mean that short term traders should hold neither.

Just deal with stop loss in a sense where you want to get out at a certain level and if you think that level is broken then it could go down even more. For example a 55k right now makes sense, because it can go down even more if it goes under 55k, but no need to put it any above because that wouldn't be really that profitable if we are not careful about it. Just focus on keep hodling if it doesn't go any under.

ethereumhunter

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Quote from: dzungmobile on September 20, 2024, 07:46:44 AM

Quote from: ethereumhunter on September 20, 2024, 03:18:04 AM

By learning more about trading, we can test one by one of the methods that we know so we can see which method that may work in the current situation so we can use that to trade. We will have a chance to reduces the losing money in trading because we can analyze better and always trying to prevent the mistake.

Learning and practice are different and all traders have to start with learning, then practicing with demo trades, then actual trades. It's never expected to be a successful trader with profitable trading after starting. A trader will have to go through many different market phases, bull market vs bear market and a most stressful and boring phase in between bear market and bull market.

To avoid losing money or worse losing all money after several trades, the vital principle is using very small part of capital for trading. Let's afford to split that small capital part to different smaller pieces that will be used to start different trading rounds. Lose one piece, you can restart with other pieces.

Becoming a successful trader will need many things to learned and that will need time before he can trade better. When he can understand the point of his lesson and can practice without have a problem, he will see that his skill improves better but he doesn't have to stop from learning more because the market will always moves. If a trader feels satisfy with his skill and don't want to learns more about trading, his skills, experience, and other things will not improves as before because he can not get a new thing from trading. That will make him feel difficult to trade because he must adapt with the current situation that happen to the market.

Quote from: dzungmobile on September 20, 2024, 07:46:44 AM

Quote from: ethereumhunter on September 20, 2024, 03:18:04 AM

Focus is indeed necessary and important when we analyze so we can know the time to enter the market.

Know when to enter the market and have clear idea on when to exit the market. The exit time does not need to be profitable but it is when risk starts to become bigger, and you have to exit the market to defend your capital.

Enter and exit the market is something that we must know so we can act in the right time. Many traders still feels greed to takes more profit even if they already make that profit. When they know when to exit the market, they can stop trading and takes profit and when the market situation change, they can use stop loss feature or just stops trading and exit the market. They will not have a difficulty to analyze the market because they always learning more about trading which help them to know what they needs to do.

Sandra_hakeem

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How do y'all place a trade at the expense of your pockets? You can seriously rely on how smart you are to çlose a position just about the time it ends? How do you deal with retracements?

I'm asking all of these questions cus alot of people in the comments be acting like they don't really see a need to initiate a stop loss/take profits in any case.
I don't know when I'd decide to rely on candle formations like y'all, considering the volatility of the market and how swift the news can affect and decide changes. I know how much loss i incured when I slept off while my trade was running without these factoids.

Peanutswar

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Stop loss order and take profit is one of the feature most of the exchange have this will serve as a protection of the trader in different purpose like if they don't want to watch the market anymore and let those position cut their trade or serve as a limit of their trade, other people forgot to use this because they keep watching with their trades but again we are aiming for the trade to gain profit now if you think its not ideal anymore why keep holding the position instead the market is volatile possible it make a reverse sweep immediately and instead just a minimal loss you have more than on it.

dzungmobile

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Quote from: ethereumhunter on September 20, 2024, 03:18:04 AM

By learning more about trading, we can test one by one of the methods that we know so we can see which method that may work in the current situation so we can use that to trade. We will have a chance to reduces the losing money in trading because we can analyze better and always trying to prevent the mistake.

Learning and practice are different and all traders have to start with learning, then practicing with demo trades, then actual trades. It's never expected to be a successful trader with profitable trading after starting. A trader will have to go through many different market phases, bull market vs bear market and a most stressful and boring phase in between bear market and bull market.

To avoid losing money or worse losing all money after several trades, the vital principle is using very small part of capital for trading. Let's afford to split that small capital part to different smaller pieces that will be used to start different trading rounds. Lose one piece, you can restart with other pieces.

Quote

Focus is indeed necessary and important when we analyze so we can know the time to enter the market.

Know when to enter the market and have clear idea on when to exit the market. The exit time does not need to be profitable but it is when risk starts to become bigger, and you have to exit the market to defend your capital.

ethereumhunter

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Quote from: tygeade on September 19, 2024, 08:23:01 AM

That is unfortunate; most of the people who trade as well, they do not know much about the situation and they end up still doing whatever they please and that is the issue. If you are a veteran and doing some good leveraged futures then you could make some money because you know what you are doing, but that is only a small portion of the people and not the whole people and we should realize that majority of the people are just people who end up dealing with something they do not know and that is why they are losing money as well.

I believe that we need to focus on doing things that we know how to do and not deal with anything that will be risky. If you are not a veteran who did amazingly at spot trading first, then do not start doing futures with high leverages neither. The one thing about leverage is that you do not have to put up a lot of money to trade, with small amount of money you can earn so much, which makes people want to give it a try but usually they do not realize that you could also lose 100% of your money with one bad move.

That is why we must always learn more about trading so we can know the situation and also know what we need to do based on the current situation. By learning more about trading, we can test one by one of the methods that we know so we can see which method that may work in the current situation so we can use that to trade. We will have a chance to reduces the losing money in trading because we can analyze better and always trying to prevent the mistake.

Focus is indeed necessary and important when we analyze so we can know the time to enter the market. We can also know how to deal with the risks not to becomes bigger because we will analyze deeper before we make a decision. We must familiar and understand how to trade in the spot trading so that will help us to analyze if we want to try to use futures trading. We must remember that we don't have to use high leverage if we don't have much skills in analyzing because that can make us lose the money.

Mpamaegbu

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OP, the number four on your list – Support and Resistance Stop Loss is the only one I'm comfortable using and that's because I like trading lines that don't repaint. I set my SL above a supply zone or below a demand zone and let the trade run its course. It's bad trading habit to adjust SL, no matter what. Traders who hope for reversals by adjusting their SL often times regret that action. Hope is a terrible thing in trading. If you can't trade what you're seeing on the chart, then don't trade. It's a part of trading discipline.

tygeade

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Quote from: ethereumhunter on September 19, 2024, 06:37:15 AM

Only people who knows their skills that can use that high leverage because they know how to manage the risks. But if that people doesn't know much about futures trading, it is better they avoid the high leverage and they can try to make a small profit but it safe to do. They don't have to chase the profit with not enough skill because that can make their emotion affect and will disturb their trading moment. They can use small money first to see where the market moves and stick to that method will be good for them while they can learn more about futures trading. If they already familiar with futures trading and have a good skills, they can trying to increase their capital to trade but still control themselves in taking the profit.

That is unfortunate; most of the people who trade as well, they do not know much about the situation and they end up still doing whatever they please and that is the issue. If you are a veteran and doing some good leveraged futures then you could make some money because you know what you are doing, but that is only a small portion of the people and not the whole people and we should realize that majority of the people are just people who end up dealing with something they do not know and that is why they are losing money as well.

I believe that we need to focus on doing things that we know how to do and not deal with anything that will be risky. If you are not a veteran who did amazingly at spot trading first, then do not start doing futures with high leverages neither. The one thing about leverage is that you do not have to put up a lot of money to trade, with small amount of money you can earn so much, which makes people want to give it a try but usually they do not realize that you could also lose 100% of your money with one bad move.

ethereumhunter

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Quote from: Mr. Magkaisa on September 18, 2024, 08:53:24 AM

- Entering futures trading without SL but with 100x leverage is just putting their fund at risk, it's like they're just gambling and they don't really have an understanding of trading. Particularly if the matter is technical analysis.

A lot of funds are dissolved in futures that do not or do not use SL, especially if they are set-up on cross margin, their funds will be lost for sure.

Only people who knows their skills that can use that high leverage because they know how to manage the risks. But if that people doesn't know much about futures trading, it is better they avoid the high leverage and they can try to make a small profit but it safe to do. They don't have to chase the profit with not enough skill because that can make their emotion affect and will disturb their trading moment. They can use small money first to see where the market moves and stick to that method will be good for them while they can learn more about futures trading. If they already familiar with futures trading and have a good skills, they can trying to increase their capital to trade but still control themselves in taking the profit.

Topic: Tips for trading strategy in STOP LOSS (Read 649 times)