Trading Lesson: Stop loss Strategies

carlisle1

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Quote from: Mankov on August 16, 2020, 10:31:55 AM

Stop-Loss can be dangerous, too.
Because in some cases it can lead to a way bigger loss
than with a "mental" stop loss. Because by a fast crash
you sell unlimited to a very cheap price.
And after a big crash a stock comes often
back 20% to 30% percent very fast after you get stopped out.

I don`t use stop loss, escpecially on very volatile invests.
I watch the charts 1 or 2 times per day.
Works fine for me.

Big investors can crash a stock to
shake stop-loss-traders out.

But I´m a longterm investor.
I don`t care about 80%
up and downs in volatile markets.

One of the reason why traders loses their money after using this feature, especially inside volatile market, stop-loss is a good tool
but also can be a reason why you will lose your investments.
One mistake with your entry/exit positions will burned everything, you needed to check your position before placing your stop-loss position.
Remember that whales are just around the corner waiting for the big hit that will shake every weak holders inside the market.
Stop-loss is a continuous learning process, from time to time you will learned and adjust until you tuned the proper blend between
your traditional strategy and your stop-loss system.

Mankov

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Ok. I choose my stocks very wisely
and I don`t invest more than I`m comfortable with.
I don`t invest money in projects which I don`t understand.
And normally I only invest when the stock is on the bottom,
very rare in the middle and never at it`s peak.

Maybe you just invest too much, or overvalue money.
If you lose money you will be still alive.

CucakRowo

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Quote from: Mankov on August 16, 2020, 11:09:41 AM

-snip-

Well. in this case your perspective will different with daily trader perspective. As daily trader, i admit, i still don't have big "guts' like pure investor "guts".
But since last month, i did trying to have that "guts". Starting with some undervalued coins and some few lunch bucks. But, still, everyday i check their price. I think this daily habits trader still attached.
Btw, wish me luck yeah.

Mankov

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Merit: 7

Well, I`m a longterm investor and do
high diversification (30-50 stocks).
I don`t care about 80%
ups and downs by pennystocks/coins.

And maybe some brokers looking for their clients stop-loss,
so they can easy bet against them.

And there are many other reasons no to use stop-loss.

But I´m not here to convince you. Just my trading-strategy.

https://www.timothysykes.com/blog/stop-loss-orders/

CucakRowo

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aka JAGEND.

Quote from: Mankov on August 16, 2020, 10:31:55 AM

-snp-

Following your logic, what about if price still going down like happened in march 2020? And there's no pullback 20-30% like you said.
1. Without stop-loss, If prices goes down without pullback, there a possibilities that your asset will be undervalue from your previous buy (in spot). Or losing all your capital (Margin Call, Liquidated) in derivative markets. +> Mentioned by tvplus
2. With stop-loss. You can minimize your loss.

Stop Loss will useless if you don't have :
1. Trading Knowledge
2. Strategies and plan

Mankov

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Stop-Loss can be dangerous, too.
Because in some cases it can lead to a way bigger loss
than with a "mental" stop loss. Because by a fast crash
you sell unlimited to a very cheap price.
And after a big crash a stock comes often
back 20% to 30% percent very fast after you get stopped out.

I don`t use stop loss, escpecially on very volatile invests.
I watch the charts 1 or 2 times per day.
Works fine for me.

Big investors can crash a stock to
shake stop-loss-traders out.

But I´m a longterm investor.
I don`t care about 80%
up and downs in volatile markets.

CucakRowo

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Activity: 994

Merit: 593

aka JAGEND.

Quote from: TitanGEL on July 29, 2020, 08:33:27 AM

-snip-

This will be a "tight" stop loss. Very useful if :
1. if applied in futures and/or derivatives market
2. Using big leverage (above x20)
3. For coins with high volatility (especially for coins above 2018 which price usually below $30)

This tight stop will be work perfectly especially for scalper (trader that using TF below 1H).

Freddy11

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Yes, it is important to use stop loss because it is too risky to go with one flow, as if we do that then we will only end up losing and wasting time. I work with proper strategy to help myself with gaining well.

tvplus006

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Quote from: Sebas.tian on July 21, 2020, 09:18:29 AM

Have learned to move-on whenever I find myself into any form of shits while carrying out my trade. Personally, I don't apply stop loss because of my personal experience, sometimes ago, I bought some coins #ARPA in Binance and went to trade them, I made some good profits and wanted to make more, but the market crumbled; but was Left without any options, a little holdups save my ass from loss to huge gains. In the trade I made roughly 100% profit with ARPACHAIN(let learn to apply risk while trade)

You can trade on the spot market without a stop loss. In this case, you risk losing part of your Deposit. But if you trade on the margin or futures market without a stop loss, you risk losing your Deposit completely. This understanding came from my own experience when I first started trying to trade.

TitanGEL

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Quote from: rexxarofmoknathal on July 21, 2020, 06:01:55 PM

Great thread, definitely something that a lot of newbies need to see since they often forget or don't know they need to put a stop loss in place.

I personally set my stop loss at below the point at which the cryptocurrency was last trading horizontally.

This helps me avoid getting stopped out by pump and dumpers or scam wicks.

I can update the thread and add this strategy, that stop loss level is called stop loss below the last trading candle where you will only cut your position whenever the price goes below the candle before the current candle. For example we are using 30 minutes chart and the current candle is at $64 per each and the candle before the current candle close at $62. Meaning our stop loss is at, $62 where if the price reached it; we will definitely close our position without thinking twice.

rexxarofmoknathal

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Great thread, definitely something that a lot of newbies need to see since they often forget or don't know they need to put a stop loss in place.

I personally set my stop loss at below the point at which the cryptocurrency was last trading horizontally.

This helps me avoid getting stopped out by pump and dumpers or scam wicks.

Sebas.tian

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Have learned to move-on whenever I find myself into any form of shits while carrying out my trade. Personally, I don't apply stop loss because of my personal experience, sometimes ago, I bought some coins #ARPA in Binance and went to trade them, I made some good profits and wanted to make more, but the market crumbled; but was Left without any options, a little holdups save my ass from loss to huge gains. In the trade I made roughly 100% profit with ARPACHAIN(let learn to apply risk while trade)

hulla

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Quote from: Assface16678 on July 21, 2020, 08:27:42 AM

Trading is one of the hardest things we could do if we want to earn extra money but still, it takes time to learn and gain a lot of experience

Youre right but fir traders to make a good outcome aside have the require experience and learning good capital is also needed.

Quote from: Assface16678 on July 21, 2020, 08:27:42 AM

people read a lot of articles, books and news about the trading but still they lose a lot

Thats because theres different in you learning and you developing yourself intellectually. Meanwhile, reading article/books is just like you going to school and you cant be successful only with what youre taught in school you also need to think outside the box.

Quote from: Assface16678 on July 21, 2020, 08:27:42 AM

they make a different investment on the different platform and this is too much hassle and expensive.

Trader also need to know their limit cause trading on different platform require good knowledge in managing each portfolios and time.

Assface16678

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Trading is one of the hardest things we could do if we want to earn extra money but still, it takes time to learn and gain a lot of experience to make a good outcome to have a market income some of the people read a lot of articles, books and news about the trading but still they lose a lot because of the experience some of them does not have enough experience and some of them are not fully prepared and does not find the best trading platform to them and this may give a lot of confuse to them so they make a different investment on the different platform and this is too much hassle and expensive.

OP does give a good content right here which can help a lot of people into the world of trading I hope someone gives a good feedback if they use this and learn about it.

michellee

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Quote from: TheGreatPython on July 20, 2020, 03:45:10 AM

Quote from: michellee on July 20, 2020, 12:13:02 AM

It is why we need to prepare ourselves before trading by learning many lessons related to treading. We can not blame the coins because we don't know which coins that will be the way for us to make a profit. Only with learning about how to analyze the coin, we will find the coin to trade. And if somehow, we can not find that coin, we need to break for a while and don't trade because that can make us get lose by choosing the wrong coin.

Moreover, all the coins are same from the perspective view of technical analysis. It means even you will be choosing a wrong coin, you can manage to get out of it without losing much or without losing anything. I mean you need to be versatile in your skills required for perfect trading. In my experience, as long as a coin is listed on exchange, it can be worth to try trading it to make some profits. Only for long-term holding, you must need to check all the fundamentals of that coin so that you will not get into any shitcoins.

I do not mean here that you can make profits from any coin; but I mean even you get with a pump and dump coin but if you're having technical support then you can manage to make profits from it regardless of that coin is not worth anything and could be classified as shit/wrong coin.

If we choose the wrong coin, it'll be difficult to get out of the losses because it will go down below the price we bought. And if we sell it, we will get the losses, which will be the risk we need to get. The volatility will always happen in many coins, but we don't need to choose the coin that doesn't have a movement because it is hard to buy low and sell high. It can be worth to buy the coin in the top coins because those coins have a movement so we can try to make a profit.

There is a chance to profit from any top coin, but we need to analyze one by one of that coin so we can have the chance to buy low and sell high. It will difficult if we can not analyze with the right because we can get the wrong coins.

KnightElite

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Quote from: TheGreatPython on July 20, 2020, 03:45:10 AM

Quote from: michellee on July 20, 2020, 12:13:02 AM

It is why we need to prepare ourselves before trading by learning many lessons related to treading. We can not blame the coins because we don't know which coins that will be the way for us to make a profit. Only with learning about how to analyze the coin, we will find the coin to trade. And if somehow, we can not find that coin, we need to break for a while and don't trade because that can make us get lose by choosing the wrong coin.

Moreover, all the coins are same from the perspective view of technical analysis. It means even you will be choosing a wrong coin, you can manage to get out of it without losing much or without losing anything. I mean you need to be versatile in your skills required for perfect trading. In my experience, as long as a coin is listed on exchange, it can be worth to try trading it to make some profits. Only for long-term holding, you must need to check all the fundamentals of that coin so that you will not get into any shitcoins.

I do not mean here that you can make profits from any coin; but I mean even you get with a pump and dump coin but if you're having technical support then you can manage to make profits from it regardless of that coin is not worth anything and could be classified as shit/wrong coin.

Not all of coins are the same and it is important to understand the DNA of the cryptocurrency that you want to trade. Are you aware about "history repeat itself"? It is true that the term history repeat itself is happening in trading and it is the reason why we should identify what kind if DNA has the charts. Picking a specific coin is a skill and it is not easy because sometimes you need a screener to do it. I do not pick a coin that have low market capitalization because most of them are shitcoins and even though you have proper risk management there, for sure you will still incur losses if you will trade a shitcoin.

TheGreatPython

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Quote from: michellee on July 20, 2020, 12:13:02 AM

It is why we need to prepare ourselves before trading by learning many lessons related to treading. We can not blame the coins because we don't know which coins that will be the way for us to make a profit. Only with learning about how to analyze the coin, we will find the coin to trade. And if somehow, we can not find that coin, we need to break for a while and don't trade because that can make us get lose by choosing the wrong coin.

Moreover, all the coins are same from the perspective view of technical analysis. It means even you will be choosing a wrong coin, you can manage to get out of it without losing much or without losing anything. I mean you need to be versatile in your skills required for perfect trading. In my experience, as long as a coin is listed on exchange, it can be worth to try trading it to make some profits. Only for long-term holding, you must need to check all the fundamentals of that coin so that you will not get into any shitcoins.

I do not mean here that you can make profits from any coin; but I mean even you get with a pump and dump coin but if you're having technical support then you can manage to make profits from it regardless of that coin is not worth anything and could be classified as shit/wrong coin.

michellee

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Quote from: TitanGEL on July 19, 2020, 07:22:12 PM

Quote from: Shasha80 on July 18, 2020, 11:46:36 PM

Very useful topic, because many people when trading do not use the stop loss strategy. Finally suffered a big loss
and say trading is not for everyone, which is worse will blame coins that have been purchased. With the learning
stop-loss feature this has finally opened everyone's mind. And finally many people now use the stop-loss feature
when trading.

That is right, they keep blaming the coins that they bought whenever they lose. They do not know that risk management is the problem why they keep losing in the market. They are playing the role of the victim which is they keep blaming, they cannot become a profitable trader if they will not use any risk management.

It is why we need to prepare ourselves before trading by learning many lessons related to treading. We can not blame the coins because we don't know which coins that will be the way for us to make a profit. Only with learning about how to analyze the coin, we will find the coin to trade. And if somehow, we can not find that coin, we need to break for a while and don't trade because that can make us get lose by choosing the wrong coin.

lixer

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Quote from: coinfinger on July 19, 2020, 10:17:06 AM

Honestly trading is not suitable for the traders who are ignoring the basics of risk management. We cannot do anything about such people who are ignoring to make use of stoploss strategy and then leaving off crypto trading completely.

No, we can do something for them and that is the core reason whey we are having this community and we are all contributing to this types of discussions out of our energy and time. I mean will do our level best for enlightening them about the important aspects of trading and the rest is up to individual's perception and preferences. When we keep having this kind of trading lessons that will definitely help one or other trader who is really struggling due to lack of knowledge.

I am sure that when traders are taking time to find useful discussions here and going through different forum member's sharing about their experiences on trading and ideas about different strategies then that will be more helpful on building them into pro grade like trader over the time. I have been doing that for years and I am a small level trader with consistent profit making records.

@OP
Thanks a lot for sharing this trading lesson on stoploss strategies. Very useful for all active traders to make them more efficient even they are familiar or making use of stoploss for years. Honestly I look for more such trading lessons on different trading aspects in coming days. Good luck mate!

TitanGEL

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Quote from: Shasha80 on July 18, 2020, 11:46:36 PM

Very useful topic, because many people when trading do not use the stop loss strategy. Finally suffered a big loss
and say trading is not for everyone, which is worse will blame coins that have been purchased. With the learning
stop-loss feature this has finally opened everyone's mind. And finally many people now use the stop-loss feature
when trading.

That is right, they keep blaming the coins that they bought whenever they lose. They do not know that risk management is the problem why they keep losing in the market. They are playing the role of the victim which is they keep blaming, they cannot become a profitable trader if they will not use any risk management.

Quote from: Shasha80 on July 18, 2020, 11:46:36 PM

Honestly trading is not suitable for the traders who are ignoring the basics of risk management. We cannot do anything about such people who are ignoring to make use of stoploss strategy and then leaving off crypto trading completely. In some sense it seems they deserve it Roll Eyes

.

They deserve whenever they lose big amount of money without having a stop loss. I think losing big amount of money will driven them to say that stop loss are really important to use and we should always have give care about it.

Topic: Trading Lesson: Stop loss Strategies (Read 741 times)