Bitcoin Forum

Any of you know about stoploss? To what i know, Stop Loss is a type of order to limit losses at a pre-set price. As the name implies, this order is used for the purpose of risk management, preventing the market from happening unfavorably, can still limit losses.
Stop loss are usually placed with a buy / sell order. A stop loss order is placed to limit losses at a predetermined position. Setting a 10% stop loss below the price you bought, will limit your loss by 10%. For example, we have bought gold for 1,000 and put a stop loss at 990. That is, if the market price reaches 990, the order will stop.
But I want to discover more about stoploss, its advantages and disadvantages. Can anyone tell me more about this? Thanks in advanced.

The advantages and disadvantages are not far from the ideas you already know, that it stops you from making too much loss. But personally, I would say it gives you the opportunity to retain your account so that you can try to regain what you have lost next time.


This is confusing. Stoploss order is not only made immediately you place a buy or sell. It can also be adjusted later when you have already placed the buy or sell order.

It's very possible that you analysis about the price was correct, but the value drops and then rises again, if your stop loss was within the drop zone, you are out of the trade, and it could rebound later.

Stop loss is very important when trading, but the hymns factor is more important, endeavour to monitor your trades and make adjustments when necessary.

The advantage of stop loss is as you said, it protects you from losses, or rather minimizes your losses.

Stop loss trading is kind of confusing and hard for many traders and even I too not tried them much times but the advantage and disadvantages are nt much in the stop loss trading which is same as the normal trading but we can limit our loss in the stop loss trading but when you make the trading into longer time frame then chance of making money is high.

Aside from the advantages you had stated, you could also set a bounced price if you believed after the trigger, it would slightly go upward for a corrections, however more often if you had it mistaken this may result on a non triggered limits which may cause a much loss

Majority of exchanges used the Stop limit feature in order to give you a choice on a stop/limit the possible loss, however, you may also use this to open a position or take the profit trigger options

Stop loss in margin trading is too difficult to estimate, usually if its too tight it may easily hit by a certain wyck fluctuations so a loss in your side is very probable

The only advantage that stop loss could have is when market is in a  huge bull run and one decides to FOMO and decides to be cautious in case of any huge drop, would be better to place a stop loss at a slightly lower than buy price, this can be reviewed upwards ask the Bull continues but the disadvantage is that because of the sharp volatility there could be a quick drop that may sell the stop loss and continue with the bull run then one would have been out of the trade just like btc dropped sharply to around $6180 yesterday and made a quick bounce to $6400

The advantage is right there in the name, it stops losses. As for disadvantages well obviously there's the potential for the market to recover shortly after hitting your stop-loss. The important thing is that you realize a stop loss isn't going to be the best thing all the time, as with anything in trading sometimes it will be the wrong decision but overtime it should minimize losses and in turn lead to maximizing profits.

Timely stop loss is very important, my stop loss price is usually between 15% and 20%, I think this decline is already very huge!

I dont see any disadvantages of stop loss,  stop loss give many advantages for trader, when first jump in to crypto trading i did not use stop loss and finally i been loss more than 50%. Trade on the any asset like forex,  stocks,  commodities,  crypto etc we should be use stop loss to minimize the risk and to avoid big loss.  In spot or margin trading,  stop loss is should be to use so we can make profit in consistently.

with stop loss we can set loss limit if market movement does not match analysis that has been planned. so we can buy back at next support, this is useful when we rarely see charts

After reading your post it makes sense that you know it already. Well, it is what it is, you just place your orders and set the settings at desired loss and in some cases you can even put on call function where you set how much profits to be taken. In that case same goes for profits as you set up the loss and once the value reach that amount then your order automatically gets executed for it. Its pretty kind of limit order but only one way functionality. As in the limit order you would specify the price on your own per coin/tokens at which the order must be executed.

I have to add that this could be very painful, sometimes it could happen in the exact limit point where you set your stop loss and with no pips further, the market will revert back and by then you would have lost on that one. So painful I mean this.  :(

Shit happens, it is part of trading and when they happen, you just have to readjust.

Moreover, cases like these are usually bound to happen when you really do not consider the market fluctuations hugely before entering a position, so as to know exactly how to be positioning your stop loss, to be at least able to know that no matter what, the chances of the market trying to be volatile in the start of a trend change, is always going to be there until the bull or bears as the case may be, wins the fight.

Nonetheless, stop loss is very important and the occurrence of what you mentioned is there but when considering the number of times stop loss would help save you from a huge loss, you will realize it is better than not using it at all.

the main advantage is that if the trade is going against you, you can cut your losses quick, and move on.

one of the main disadvantages is the fact that many times the trade can touch your stop loss, and then move towards your take profit.

I do not use stop loss because I trade in the market there often happens pump and dump quickly in seconds so when using stoplose we can lose even though it is only pump and dump I prefer to use a price alarm because it is safer in my opinion

In where you trade? it will be fun if market often to pumped and dumped. Trade in there will be good especially for day trader, maybe if you want to share where you trading in here.

Stop loss is just a way of minimizing the risks the market holds and a lot of people who are just starting to trade, usually don't know that and since all they are just after is buying the bottom and selling the top, without any form of strategy, the importance of stop loss will be a hard thing for them to phantom.

Stop loss has a whole lot of huge advantage for those who trade the market and even for investors that have some little bit of trading knowledge as this is usually a way to know that even if you are taking a risk on the market, you understand that even with your strategy, things could go wrong, but for the fact that the reward is more than the risk, I am certainly going for it, but still keep the stop loss active in case the other side of things happen.

Well said buddy, but here is mine. Stopping your loss or cutting on it it means just like you are accepting already your loss which means that is forever lost but if you didn't then, you need to wait until when it is recovered. The advantage of that is you can avoid of keep losing on your capital investment meanwhile, the disadvantage you can't recover at all your lost which is probably it will back if the market turn to green.

Be very careful with creating stop-loss orders. Sometimes "whales" drop a certain crypto currency in order to trigger stop-loss orders of other traders. As a result, the price of this coin falls deeper, and they immediately buy cheap coins. This is their trading tactics.

Stop-losses have advantages. As a rule, you need to create stop-loss orders after the price increases. If this coin falls again, you will gain some profit anyway.

I think stoploss point is one of the most important thing for trading. It helps the investors cut loss or get profit. It helps the investors to not too greedy or frighten. And the most disadvantage of stoploss is the prediction. if you choose a wrong point, you can lose your money too much.

Lol, do you even know what you’re saying? What do you mean by advantages and disadvantages of STOP LOSS? I don’t know, for me, your question is kind of funny. What do you expect us to say as the disadvantage? That it stops you from earning bigger or what? Stop loss it’s just a way for you to prevent loss, that’s it. If you’re looking for something more than that, then I’m sorry to say that you’re wasting your time.

The thing about a market is that it is unpredictable, and surely all we do as traders is to take advantage of the market with the use of our strategy, but at the same time not discarding the importance of using a stop loss as the inevitable where the market could want to go lower from where it bounced from could still be there.

A lot of people who trade the market usually do not have strategy and knowing where to put a stop loss will always be a lot of problem for them and in that case, it is always going to be hard to even know how to be stopping a loss to minimize the market risks.

I use stop loss every time and it doesn't concern me if I get stopped every time as long as my funds are safe. Just be sure that you put your stop in a good way.

Putting up stoploss would only depend if you are really conservative on risk management but using that kind of thing here on crypto wont really be much effective yet 10% volatility wont really be that hard which means single price pump or swing would just trigger your stop loss and what would you do next? Chasing up another entry order and trying to break even. If you do make trade openly you would still have the chance for recovery but still risky yet we wont know on how deep would be the negative would go.

stoploss I think there are more advantages, this is one step to managing our crypto assets. with stoploss we can reduce the impact of losses because we can adjust the possibility of prices falling deeper after being analyzed

If you are going to leave and cannot monitor the growth of your investment in a exchange site like Bittrex where they offer this kind of function, use the stop loss to protect your investment in any sudden drop of price while you are not in front of your screen or not logged in. This worked for me when I was holding NXT for IGNIS airdrop. As soon as the screen capture already happened, price of NXT dropped like a fly, good thing there's stop loss. I was able to sell NXT at good price.

For me there is no harm in using stop loss. Stop loss is somewhere where one can prevent himself from the loss in trading I myself you stop loss whenever I traded on Binaance  and bittrex.

Not all exchanges support that uses a stop loss. Only biggest changes like binanace and few others off for the facility or stop loss. Those who are new in trading this is a very good thing for them to prevent himself from big loss.

I haven't tried it yet, bit it seems really an advantage especially at times were on holiday, sometime if I knew I would be off for a week and thinks that coins will continue dropping, even Im loss ,I will just sell it especially if that place have no internet.

The most important of stop loss order is not to allow your account to be wiped out because of the unnecessary price movement against your open position and the disadvantage is that it is possible for price to follow your analysis from the point of the stop loss.

Yeah with that you can also buy at a lower price to at least reduce losses but do the analysis first. make sure that prices will continue
to decline before you stop losing. don't let you sell your coin when the price has stopped decreasing

Stop-loss:  The Important things in investing and trading is risk management. Setting a stop in my advantage side of it reduces the risk of you loosing it all in trading. The disadvantage is that the stop price could be activated by a short-term fluctuation in a stock's price.

Actually stop loss is very good tool, that provide you to optimize and mange your risks. Of cource there is probability that the price will hit your stop loss, colse your positions and will go higher than it was before it. But I think there will be more advantages through protect your maney in early stage of falling than opening order without stop loss.

Advantage : no need to track daily active orders. This is especially useful when you are busy with not being able to follow the market for several days.
Disadvantage : can not hit the stop loss point because it is often oscillating.
You should know where your stop is and take profits within 5% - 10% .

If the guy's a short-term trader like the majority of people that seem to be active here, then stoploss is the only way for them to reliably manage their performance on a day to day. It'd be crazy not to act conservative if you trade daily, no stop loss means potentially just holding more and more of your balance in orders, stuck with them and unable to take advantage of new opportunities when they present themselves.

Long term holders, or trades meant to last months, or even weeks, sure. But one or two bad swings and you're just stuck waiting for the tide to turn, unable to do anything else.

In my opinion you should use stop loss if you don't have enough money so, you can lose all of your money in small move of price without ''stop loss''. Of course having some money doesn't mean you don't need to control it. But in every sense it can save you from the loss. The disadvantage is that you find the right direction of the price, but it prevents you when the direction of the price moves to reverse direction.

As a day trader and basing on my experience we should really need to act conservatively yet we know the field we are playing to. Active trades with every second price changes and stop loss will really be needed.
It do really depends on how a certain trader will do the trade either short or long-term ones.It is true that once you have set out no stoploss then chances on leaving you hanging is there.

it is absolutely true to what you say, and really is very necessary in trading, and that can be avoided in that way.

This is so true to me. Stop Loss is very useful if  you don't have time to monitor daily with your positions. Disadvantage for me is when your stop-loss is hit and then it bounce back, you cant make a buy order to recover. But its fine since losses are manageable in this way.

Advantages of stoploss is you can retain the capital you put about investments and saving the chances to loss any value at all.

Disadvantage is if the value of that said Coin/token suddenly grows after that stoploss limit,unless you’re active to adjust the value again then you may profit more

Though i don’t really use this everytime i trade because i make sure that i have enough time to focus totally

Confident on trading

Yes, I do this in normal tradings

however when it comes to margin, its a different story

Stop loss is a must, its a part of risk management

else, all funds in an open position might burn

I think I can tell you more about them

And not just about stop-losses as such because what I say is applicable to virtually everything. Long story short, stop-losses are a tool, and whether they are beneficial or detrimental depends on how you use them, how they fit your trading strategy. Many people would categorically claim that they are a must-have, but it is not so. For example, if you are going to buy something as the price goes down in the way of averaging down your costs, then stop-losses don't make sense as long as things continue to evolve as expected, even if it means the price crashing. In other words, a stop-loss is for an immediate exit if they don't, i.e. in case something happens which you don't expect and are not prepared for. Ultimately, it all boils down to how well you know what you are doing, how well you understand the asset you are trading. In that sense, stop-losses are like an emergency brake to let you out when you find yourself losing control over the situation. And as I said, it is not just about trading as this approach is fully applicable to everything you may encounter in life

Stop loss is very useful in cutting off risk to avoid wiping off the whole account in an event of a bad trade a good trading strategy should have at least a risk to reward of 1:1 with a tight stop loss however due to high volatility of prices in recent times prices do hit stop loss before turning in the right direction while some traders prefers not to use stop loss keeping in mind that despite the draw down the price in most cases returns to its winning ways. I prefers not using a stop loss but trade with a small lot and use a virtual stop loss before closing my trade.

I think there is nothing wrong in asking this question. There are people who are new in trading and it will be helpful for them to understand the meaning of stop loss and how to use it in the trading.

Not many people use the correct way of stop loss stop. Stop loss can be used in for too prevent the loss  also it can be used to buy at a specific price or sell at a specific price. The correct usage  stop loss comes with the passage of time when one person keeps on performing the stop loss while he’s trading.

Stop Loss in instruments with high volatility is a risky thing. Need to have big stock for position execution. Very often, your order may not be executed due to a sharp and strong price jump.

It's the safest way if we still manage to keep our capital on that coin but if already at loss better trade it. It's a good tool if we think we're wrong on choosing that coin. However, we can do manually stop loss when we analyzed the coins potential, or if there's a possibility for some increases in prices.