STOPLOSS? what are Advantages and disadvantages of stoploss?

[leonix007]

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

[deisik]

But I want to discover more about stoploss, its advantages and disadvantages. Can anyone tell me more about this? Thanks in advanced.

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

[gabbie2010]

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.

[dowellness]

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.

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.

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.

[jjohnathn]

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.

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.

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.

[cathat]

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.

[Gastotade]

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.