Bitcoin Forum

One of the powerful trading tools is stop loss. A lot of trader don't use it or don't use it effectively. Stop loss is important in so many ways, by helping you reduce your capital loss per trade whether you are on it or away. Once the stop loss is set, if the trade goes against you some portion of the trading capital will be lost depending on how big or large the stop loss is.

However, stop loss is also advantegous when your trade is in profit. You do this by adjusting your stop as the trades moves in your predicted direction so that part of your profit will be what you will risk as your stop loss and not your capital. Many people do not understand this and lots of people make so many mistakes about the stop loss usage by either moving their stop loss too fast or keep it at the initial point.

This is a Trade management tips and it plays a huge role in your trading results.

Stop loss is nit really useful for day traders, because they actively keep trading their funds so either they have to pick big margin while setting the stopp loss or just don't use at all but the results are going to be same for both. For mid term traders it is more useful and must have feature to save themselves fron huge capital losses.

it will be a difficult thing when we are trading and the coins that we hold, the price continues to fall, checked for the next 30 minutes or 1 hour, still red. My advice is to hold on first, don't be in a hurry. even if you can, hold on to days or even months if it still shows a red graph. things like that are important because we are trading not for speed, but accuracy to get profit.

Are you serious? OP explained it very well and I did agree. Why you consider day traders wouldnt take advantage of the stop loss. Their trading time frame is way shorter so definitely this will help. Also for a busy person who can be quite conservative this stop loss option is a big help for him to reduce loss and limit the profits. Adjustung stop loss favor anything that isnt much volatile and even volatile. Of course no one can anticipate the movement but surely a stop loss is big advantage for evergone. Thats why everybody recommending to use it when doing trading.

The best stop loss strategy is to keep your money in your pocket instead of gamble it and throw it away in a high risk market where you will end up losing it all, maybe not today, neither tomorrow, but definitively someday.

For short-term trades, SL is an extremely useful tool/feature. I usually have different criteria for the stop loss for a short-term trade I keep SL at 5-8% for mid-term trades 10-15% but, for long-term trade, I usually don't keep any SL.

Crypto market is so volatile sometimes that sometime SLs do not work in our favor. Happened to me a lot like SL got triggered but, later market quickly recovered lol.

You won't lose your money if you trade and take profits. For example, if you invest $100 and your trade goes up 40%, take back your investment and trade only with the profit you made. That way you won't lose anything if the market turns around and you get liquidated.

As for stop loss, it's a useful tool if you know how to use it. And by that I mean that a user have to know how to "read" the market so he knows where to put a stop loss. For example, if you go long on BTC and support is at $10750, you don't put stop loss above that price. You put it below that price. That way stop loss will protect you if resistance is broken and the price goes down.

We have a lot of discussion about stop loss already,

[1] Trading Lesson: Stop loss Strategies (https://bitcointalk.org/index.php?topic=5261095.0)
[2] 5 Stop Loss Mistakes To Avoid (https://bitcointalk.org/index.php?topic=5162520.0)
[3] Help with Stop Loss Strategy (https://bitcointalk.org/index.php?topic=1933045.0)
[4] [GUIDE]: How To Setup Stop-Loss order and other types of orders (https://bitcointalk.org/index.php?topic=5265407.0)

So I guess you can get and comb that topic in the past and I'm sure that we can learn a thing or two.

That's really important, not just stop loss but stop profit. So that if we use this feature, then we don't need to be afraid of big losses, of course. we can adjust the losses to what we want. Because sometimes the market can be a massive dump, and it is impossible for us to always actively monitor the market. that's why stop loss is so important.

Trading without stop loss is gambling, I see this one as an important strategy every time I trade and even if it hurts to sell your coin/token at a loss, you must stick to the plan or you’ll lose more.

There’s always a win and lose in trading, no matter how good you are there are times that our cut loss price will be hit and its up to us whether to follow it or take more risk hoping that it can bounce back again, this is the start of a losing trade for those who took the risk, be responsible on your actions.

Stop losses are only available when using auto trading softwares or trading bots, I don't see this features available on centralized exchanges, maybe I'm not looking enough? And if I can remember correctly there are many trading bots that doesn't work right, anyways thanks for the information OP I will definitely look again

People already understand the stop losing feature, but what many people still don't understand is a good stop losing calculation because if you are too close to the starting point, then you can lose the chance that the price could go up, but vice versa when you set up too many mistakes far from the initial point then you will lose.

Stop loss will work if the price moves unpredictable, and we are hard to analyze the moves. Using the stop loss, we can prevent the drop in the price in the next minutes. You can avoid the big loss if the dump comes at the market so that you can save your money from the drop. It is not difficult to apply that feature because you can only set the price at a low price if the price is unpredictable and let the price move. If the price is still going down and touch your order, that will automatically fill your order to save your money.


Binance uses that feature, and I think bittrex and poloniex also use that. You can check on the exchanges that I mention, but perhaps, the name of that feature will not be the same in each exchange.

"Stop loss" is the name of the method, the opposite of "take profit". If you look for buttons with these name on any a centralized exchange you won't find it, as both are the methods that must be applied to the "Stop Limit" (available on most exchange).

let's say i want to be trading for two hours per day. How do i apply stop watch. let me give a background explanation. In the two hours, i will be very active, as i will be watching the movement of the charts and candlesticks. So, how do i make use of stop loss in this case?

Great tips my friend
And People that don't use stop loss in their trade is not ready to lose, they only think about profit
But as we know predictions will not always right, thats why we need stop loss to minimize the risk on our trading activity

People concentrate so much on the profits they want to gain on each trade that they forget one simple phrase that resumes why your stop loss is critical and that is ‘a penny saved is a penny gained’ basically if you can set up your stop loss so it protects an important part of your capital that should still be considered a win even when you lost money, there are so many traders that trade without a stop loss and believe me sooner or later this market will destroy them and this is even more true if they use leverage, so even when you lose a trade if the market keeps going down significantly you should consider yourself a winner since you still predicted the new direction the market will take and avoided a catastrophe.

Not only in trading but even in all gambling activities, setting stop loss is very advantage so we can avoid maximal losses in the end. Even when we are in the peak of making profits, setting stop loss is still advisable too because not only we should limit our losses but also in making profits too since we cannot anticipate what will happen the next time around.

Individuals as of now comprehend the quit losing the main feature , however what numerous individuals actually don't comprehend is a decent quit losing estimation since, in such a case that you are excessively near the beginning stage, at that point you can lose the opportunity that the cost could go up, yet the other way around when you set up such a large number of mix-ups a long way from the underlying point then you will lose

You don't understand trading if that's what you're thinking. But you're free to choose not to risk and trade it. The essential of trading is to make a profit and get experience in the market. If you have no idea what trading is and you just want to keep in your pocket, it's also ok.

The market has always been in high-risk situations and it will not change because it has been volatile even before.

Trade management is essential to get maximum profit with minimum loss and many traders don't understand these money management methods for controlling their bankroll. The stop loss is for cutting losses but the majority of crypto traders have an idea to let it go until the trade goes to the green zone. The red zone has to be limited with the loss which the trader accepts to lose with controlling the stop-loss orders. The trail stops and using the limit stop orders can protect our trades from unexpected market fluctuations in all cases.

This is part of a trading discussion. We know Binance is the highest liquidity pool exchange, but this exchange recently added a stop loss feature. I mailed Binance that they should add this good feature. Other more features should be added to the top exchange OC or ICO. I didn't sell my altcoins in 2018. I thought the price would pump. Those features could stop our losses.

Have you experienced setting up a stop loss and triggered immediately and then went up to suddenly to your target ways? For example, having a long entry and set up stop loss and it was hit, then price eventually rise up but your entry were already settled?
 But I couldnt disagree that stop loss is one of the useful tool that we shall use in trading for cutting losses.
 
 However, there are also mismanagement of using it. And that of adjusting your stop loss is also an alternate way to gain profit if you are really sure about your predictions. Having also a good knowledge how to set that up is an advantage.

We need to research the market well before we can get good business results i think stop loss is a good way to reduce losses in business long-term investments if the value of the currency ever falls there is no need to fall into losses. Even if the price is down stop loss does not bring down the price of the currency binance is a good place to make a stop loss proper use of stop loss will protect your profits and limit the amount of losses.

Setting a stop loss is a useful tool in trading because it can help investors minimize or limit their losses and avoid market crashes. Learning how to use a stop loss allows traders and investors, especially newbies, because risk management is essential to save your funds from having a massive amount of losses.

Stop loss gives a fake feeling of control over the situation. On the one hand, it is good, and on the other it makes a trader feel secure and relaxed and theses emotions are unlikely to bring profit) So stay online in the control of the situation)))

Yeah. It's better to have and manual override than to let stop loss initiate. I mostly don't use a stop loss as I believe the coin and range I'm targeting would not fall below my prediction. And if it did, I'd rather hold my coin than to sell than cheap.
I have also switched to crypto to crypto trading from the USD one as though the usd one would have gave me clear profit in terms of my investment, the profit lies in holding the coins rather than trading and accumulating USD.

I rarely use stop losses in trading. Now I'll tell you why:
1. The possibility of installing a stop loss is not on all the exchanges where I trade.
2. Most coins have very high volatility and it may happen that now you will get a stop loss, and in an hour the price will increase several times and you will lose profit.
3. I quite often monitor my exchange accounts using remote access from my phone to my computer. I also have a bot that sends me a message in telegram if the price of my coins changes by more than 10% (here I can set any size).

when you trade using USDT it will indeed look a little safer because you are using a pair that has stable price movements whereas if you use cryptocurrency when the price falls you will experience a lot of losses, maybe if you don't want to get a lot of losses then you can apply trading long-term coins that have the potential for price to go up.

Stop loss is definetely a must for every trader. loosing 5% much better than loosing 95% for sure. You can use it in the beginning of a trade. Also if you can move the stop loss to profit zone when you are in profit. So no matter what happens you will be in safe side.

Most often, it may happen that you will trigger a stop loss, you will fix your deal and then the price will go up a lot. You will be left with a loss. In the crypto market, it makes sense to set stop losses for a price drop of much more than 5%.

stop loss will give us a safe trade and minimize the risk in our trading activity
because the real trade will always think about how to reduce the risk, wich mean cut our lost short and let the profit run

That's depend on the traders if they thinkmorethan 5% is too much for them to lose then its better to set it that way. It will lessen the lost if you make only set it in 5% but keep in mind that its easy to hit.

actually stop losses also have their own drawbacks too.
for example you make a stop lose at min -10% of your total trading points then the market in a short time bounces back only 0.1% difference from your stop loss then it will be a bit unfortunate.
but the advantage is that you can avoid bigger downsides with this feature.

I agree the stop loss feature is really helpful for traders especially when they are sleeping (if they leave an open trade) or away from keyboard I really don't know this feature but when I do some research and test it out it's really helpful for me in my own opinion.

We need this stop loss feature before the bear market starts. Somehow I think stop loss features won't work in the top altcoins. Top Altcoins price down won't happen like before. We need more features in exchange for how to stock our profits in the altcoins pairs. Automatically users will know all the features when exchange will add this trading feature.

Most of the coins that I trade quite often have price changes of 5%, and if I put my stop losses on such price changes, I would trade at a loss to myself. Of course, every trader has their own strategies for various exchanges and trading pairs, so I will not say that my strategy is the best.

I have had many such cases where the stop loss was triggered, and then the price returned to the previous values at the time when I first started trading on the exchange. I realized that the reason for this is that I did not set the price correctly for the stop loss, in order to reduce my loss, I put it too close to the current price. Now I know that the stop loss should be set behind the support or resistance level, depending on whether you are short or long.

I grabbed some good points from this your post. But another thing is that on that part of leaving the stop-loss on the initial point, many people who make use of this stop-loss are doing so because they are not there when they set a trade, so this tool is like something that’s going to be taking the action while they are not around prevent them losing lots of their trading money.

You can’t be doing anything without researching it. Just like me I know about stop-loss, but there are still some things that I don’t know about it, and everyday when I read about it I seem to get some new ideas that are helpful to what I am doing. So, research is a crucial thing that anyone needs to be doing.

From my point of view, this is absolutely correct. The most important thing we need to do to become a successful trader is to keep self-discipline.  Many times it happens with traders that they apply to stop-loss on paper(tool) but their mind doesn't cope up with it and might get ended lowering the stop loss and then resulting in more loss. Only self-discipline can survive us in trading.
Also to addition keeping stop loss, if we put "STOP-PROFIT", it will surely give you some profit in cases where the price goes up and then gets hit to stop-loss price.

This is something that people overlook all the time, while gambling and trading are completely different activities they share many concepts as people have studied gambling games for centuries and traders found out that their concepts could be applied to the markets, for example there are many that wait for particular formation on the market to appear that have a high probability to produce an outcome, and this is no different than the gambler that waits until the odds on a match become more favourable to them, and the same is true for the concept of a stop loss, at some point we need to admit defeat and move on and yet many traders and gamblers are unable to do this.

The crypto market will teach everyone to use stop loss. Because those who do not use stop loss will lose their balance completely or partially. And at such a moment comes the realization that it is better to lose 5-10% Using a stop loss, rather than losing 50-100% of your deposit, do not use it.

traders thinking when they hold their asset price will rebound and assets value back to initial value. and the fact price continue drop and till its value only 10% we feel regret and everything was late. dicipline and consistent be main key for survive in crypto market , cut loss when its already move againts our position. we have must have principle courage to hold must courage to suffered huge loss or profits .

Traders should use the stop loss for sure. When you go to sleep you should mange stop losses if you wanna sleep well) I know how nervous it is to leave open buy orders for night without stop loss)

This is a classic mistake and one of the most costlier ones, if you take a look at some of the biggest losses in the markets in all history you will see this mistake as the one responsible for them, a trader takes a bad decision and now he is losing money, then instead of just accepting the loss he decides that he is going to hold his position or even increase it as it seems whatever asset he bought now is ‘cheap’, then the price keeps going down and now it is even more difficult to accept the loss but he refuses to budge, the market drops even further until finally the trader receives a margin call or a colleague forces him to close his position and all of this could have been avoided if he just used his stop loss from the very beginning.

I wish I read this topic 2 months earlier. From August 31st, my account kept falling steadily from day to day, but because I always hold a thin ray of hope, I removed the stop loss many times. I think analysis  the setpoint and placing the stop loss is a factor, the most important thing is to build a spirit of discipline to always apply them.

The stop loss is very useful because it can be the last line of defense when there is a dump in the market. without a stop loss we will experience a loss when the dump occurs suddenly. I always use stop loss and this is very useful because we can not always see the market situation.

Traders customarily place stop-loss orders when they are initiating trades and using Top-loss is a good point as it specified an advance order to sell an asset when it reaches a particular price point. It is used to limit loss or gain in a trade.

It is always difficult to become a self-disciplined person if you have a different nature. I guess, you need to have strong nerves and cold head not to panic when you see your coins are going down (or up). Fast decisions often lead to big losses as I know from my own experience.

This topic isn't important for altcoins discussion. Trading is a very easy earning process if we can take advantage of all the trade feature advantages. Stop loss features can only stop your loss from the huge losses because we don't know how far one coin can go down. Can anyone help me? I didn't find the top exchange this feature ( stop loss ) without Binance. This feature should be available for all the exchange.

That's for real mate, we need to understand how the market behaves but often times mistakes are unavoidable. If we loss stopping should be done for a meanwhile before recovering from that situations. Consider all those factors and prevent certain things that might lead us from making that wrong decisions redundantly. However, if you're set value on trading wasn't meet then holding for long term is a best options.

I trade forex and I know how important is stop loss although it has pros and cons however I place stop loss in all my trade to protect my capital, based on risk to a reward ratio, however there some trades when filled tend to hit stop loss before moving in the speculated direction although this scenario often occurred when a tight stop loss was placed especially if the traded pair is very volatile and the price moves faster with momentum.

yes, stop loss is important but in my opinion it is only for use when trading in new altcoin or altcoin that have a low trading volume, because if you buy altcoin that are already in the top 100 coinmarketcap (for example ETH, LINK, LTC, XRP or BNB), then in my opinion you don't need to use a stop loss, because when the price goes down, all you need to do is hold until the price increases again, although sometimes you may have to wait a long time.

It is too late to correct that mistake but at the same time it is going to help you for the rest of your trader and investor career, as long as you do not lost all your capital then you are still good, and it is important that you never forget this lesson, when it comes to our stop loss we need to be inflexible once it is hit you need to sell, no questions asked, just do it and while it is painful to lose some money and then see the market immediately recovering the stop loss is designed to protect you from big losses and not from the small ones, since the former are the ones that can destroy your account in a matter of hours or days if you are not careful.