Topic: Your First Stop Loss (Read 345 times)

It would have been better that you just keep your coin in the wallet and continue holding it until it grows, because if you are doing this in trading, then you will be practicing long term investment and not trading. A trader takes advantage of every rise and fall within a short period of time which is usually with a day or week to make profit.

More so, someone who is margin trading or leveraging can never do that because if the coin being traded suffers loss of value more than the money he can trade, he will automatically lose the trade which stop loss would have just guard against if he had used it.

I do use stop loss too for my trades now and I didn’t learn to appreciate this tool until I learn the hard after losing my trading money completely to greed and when the market started working against me, I had several opportunities to stop my loss manually but you know the thing with human mind, I kept hoping and believing that the market will pick back till I lost my trade completely to leveraging, and since then, I don’t trade manually again, Once I place my order at a convincing value, I set my take profit automatically and set my stop loss automatically, then close my trading platform with the hope that there will be a good news when next I visit the platform.

I was already aware of that and I knew that when you are using stop loss you should be aware that when the stop loss happens that price might skyrocket at anytime. Before I started making use of stop loss in my trades I first read about what stop loss is all about and how it works and that's how I knew that there are different types of stop losses and you should always know which one to make use of. If you're using stop loss make sure that you set it up like for example to stop loss at 30% or something like that,, so that the price wouldn't drop below that and stop loss and the skyrocket.

Getting married to a position can be one of the worst decisions you can make as a trader, and this can easily happen if you don't set stops. It's always best to cut out a losing trade early and find a better entry later to ride out into profit, even though you might be emotionally attached to a losing trade. I also use stops pretty frequently, though I still infrequently do get stopped out on a trade because of a stop hunt or something of the sort. Always best to take a small loss over a liquidated position or a large loss.

Yeah stop loss is a very important tools to help you prevent more losses, and most of the beginners didn't know how bad the market could change and usually regret it after they witnessed their money go away, I learn to used stop loss in a hard way, I lost almost all of my portfolio in 2018 because I didn't pay attention to the market and didn't put any stop loss

Mine was when I was using one of those trading bots. It had an option for stop loss and it was at default %90 for people who didn't want to sell at profit loss. I was using that because I didn't want stop loss, I am one of those long term people who are willing to hold a coin as long as possible and not sell them until there is a reason to sell it.

Of course, the bot didn't realize that and during that 2018 bear run one of the coins I was trading was done more than 90% and it sold, of course I took it back and buy it even more this time around but that was the first time I have ever sold for a loss, it wasn't for that long since I rebought but I said I would never do that again and haven't used the bot ever since that day.

I experienced this often times. When I set my stop loss and it accidentally hit it, my price prediction is happening. I find it so amusing that the market is so playful. But I am so grateful that there is stop loss. It helped me a lot in my trading. The way of the market is most of the times unpredictable. So, the stop loss is a good way  not to lose all your money or not being liquidated.

There is always a purpose of a stop loss. Especially when you are a margin trader.  It is designed directly to save up our fund and is designed to limit our order. It is a powerful tool for a trader to use it.

For about 4 years, I have never done a stop loss. I prefer to stick to that price until I wait for it to rise again. Because I am optimistic that the investment in crypto is for the long term, and of course the market will not always be down, it will definitely rise again. Believe it.

My first stop loss took my entire account out. that's because I set no stop loss and saw an over 60% move south. Ever since then, I have learnt the hard way to always place a stop-loss, no matter how sure I am about the trade. It took a long time for me to realize the fact that to be a professional trader, you must learn to make the stop-loss your friend. why? because it's what will literally save your account. Learn to be sincere here, no one can say for sure what will happen to the markets. we can only make intelligent analyses and stick to the winning side. but for us to allow our greed to overtake us and not set a stop-loss will always keep our account in jeopardy. that is not the quality of a professional trader. My first stop loss, as i said, was horrible. Because of that, ever since then, I seldom set up a trade without my stop-loss. And, I'll be sincere, that style helped my account a lot.

I can relate to you on this. Stop loss is a double edged sword for me, it might prevent you to loss more money but at the same time it also take away your opportunity to profit in a trade so before making that stop lose, decide patiently on what percentage to set-up, not too close to buying price.

You can minimize your losses through stop loss, if you are gone from trading for long time and the price keep falling, you can use this to prevent losing more. Except you are a daily trader who always seeing the chart, it doesn't need to use stop loss.

It depends on where and how I trade. If I trade spot without leverage, I am not using a stop loss. On Bitmex where I trade with leverage I do use the stop loss feature because there is way more risk attached to my trades now. Spot trades don't lead to liquidations, while leveraged trades on Bitmex do.

Bitmex is a bit shaky from time to time with mass liquidations happening out of nowhere, that's why I am a bit more flexible on where I place my stop. I'm usually going for 20% in either direction depending on the trade. 1-5% is what I consider too tight and will easily lead to a trigger. Despite Bitmex's thick orderbook it's still a thing to take into consideration.

I've never uses stop loss, I could but I did not I don't know why. And I think it would not make any difference for me, I would still make loss but probably spend less time looking at the screen.

Stop loss doesn't need to be viewed that way, its a trading strategy that has been used for people admitting that their trading plan was wrong and that stopping their losses is their only way to minimize their loss. Just think of it this way if you haven't triggered that stop loss where will you be at now? I'm sure if it goes down you'll be happy but if it goes up I know that you'll be sad, but the thing is you have stick to your trading plan and that is the best thing a trader could do. Most of the losses has been created by traders not sticking to their plan.

I know still we believe that stop loss should use for prevent loss and obviously it's true. But for me whenever I used stop loss most of time hit stop loss and pump the coin. Means I didn't losed but I were not able to get good profit. It's my bad luck on the trading. That's why right now I am not using stop loss (for basic trading) without obvious case.

I agree with most people here that you need to use stops but keep in mind you need to pick a good idea to put your stop loss at so it doesn't get hit and reverse on you.

I remember when I first started using stops, I found them useless because almost everytime my stop got hit and it reversed in exactly that area.

Then I found that you should never place stops at daily highs or lows or near psychological numbers like $7000 or $8000.

You are quite right. On Bitmex, people are told to trade without a stop loss precisely because of the killer wicks this exchange has. To my mind, these wicks are clear sign of manipulation, but that's another story. So you have to have a stop if you want to avoid liquidation. You can be lucky and avoid liquidation 10 times in a row, but the 11th time may clear your account. Or, at least, you have to be very disciplined not to put at risk your whole account in a single trade.

To be fair, I have to mention that the stop loss on Bitmex is far from being perfect. Sometimes my stop loss gets triggered 50 or 100 USD after the actual value I had put in, but I guess one has to live with that.

Bitmex can be used in various ways. You can use it like a casino if you like, but that usually leads to disaster. If by any chance a person is lucky and manages to earn a lot of money, they should take that money and never come back again. Or I think disaster is imminent.

Yes, I agree. It's a dream of getting rich quickly. I have heard many sad stories, people loosing fortunes, and such, stories that you usually associate with gambling and casinos.

But, you don't have to go down that road. For example, leverage plays no role for me personally. I use Bitmex like it offered no leverage at all.

If you don't use leverage in a crazy way, it can offer some great advantages. For example, it has huge liquidity and nearly perfect user interface (for me at least). So I use it like any other exchange with advanced capabilities.

For example, on Bitmex you can go long or short, as you please. On the glorified Binance, for example, you can go long, but you cannot short! On Bitmex, you can have a "stop loss" and as many "take profit" levels as you like at the same time. On Binance you have to choose, you can either have a "stop loss" or "take profit" level. You cannot have them both at the same time.

I can remember that I saw a thread of yours regarding trading on BitMEX. That exchange has some serious killer wicks it throws left and right from time to time. If you don't have a stop, you'll get liquidated in an instant.

Noobs not knowing what happened think their account has been emptied by hackers or in some cases they even accuse BitMEX of having stolen the funds. This just shows how much people are actually gambling.

People think to make a fortune using 10-100x leverage but end up with with empty pockets. I think it's safe to say that leverage trading in general has been glorified too much on social media.

Its hard to deal with your investments when you already have emotional complications like stress and frustrations about the price because moat of the time, you will come up with a decision you regret after. Its good to have a limit where you stop losses but what if it increased big time after days?. If youre tired stop, pull yourself up and continue when your ok.

this is a disease of a trader, giving up too quickly and not surviving when a coin falls. Even though the market changes rapidly, when the stop loss should buy back and enjoy a little profit.