Stop-Loss ideas

[maeusi]

As I tried daytrading to get familiar, I tried stop loss at poloniex as it ran still proper.
The results of 10% or 20% stop win/loss were pretty bad because of following reasons:

• Most cryptocurrencies are quite volatile on short term
• Stop-loss orders were not dynamic

When you watch the history of Bitcoin and other cryptocurrencies, you will see stable upturns on many of them in longterm, but not in short term and you must adjust orders by following the price manually.

[glowing10]

Well this is very subjective question because it will depend upon your risk appetite. If you can take risk then at present you would have seen that even you had purchased btc before the prices fell below 3k . So normally people have panic and sold off but if you had risk capacity then you could have hold and now its back above 3800$.
 

[Toden1379]

I just started trading and would have saved a lot of heartaches if I'd read up on stop-loss booking.  
Now what I do is check the fluctuation history of the altcoin. For example if the average fluctuation from current price is 5% loss I set that as my stop limit and sell at around 5.5% loss to give a bit of leeway. But if I REALLY trust on the coin and it's performance then I don't use stop-loss even if it goes down at troubling levels with the hope that it will sling back up in a bullish run. High risk-High rewards. Fair warnings.  

[bengems]

I monitor my trade manually when trading on exchanges with no stop loss feature. If I use stop loss, I first monitor my trade to see that I am already in profit, then I set about 10 to 15% stop loss to protect my profit should in case the price start crashing

[sexcoyote]

i am using 10% take profit and 5% stop loss. you can change it 20-10 or 30-15 up to you.

[elimi]

sometimes I make a mistake when buying bitcoin at the top and hope it will continue to climb, but it turns down, and I cut my losses, after that I wait until bitcoin is stable and buy it. Because I'm sure the price will always go up, must be patient and good at reading the btc situation

[ukboss]

Stop-Loss is a most of the part of trading. If you don;t know how to setup it you can watch video tutorial then you can see and know details of stop-Loss system. Stop - Loss make a profit to you without net connection . when you setup your target then when market go there and your profit will be tack without your absence.

[BillCoin]

I don't know if the stop-loss mechanic is such a good idea when trading crypto; more than often one gets a coin for a certain price, then value drops 40% or so below said price, after which the price absolutely skyrockets. You would basically deny yourself a possible substantial future profit in many cases when you actually implement a stop-loss tactic.

Stop loss strategy in cryptocurrency trading may not always fit, but could be very useful at a lot of cases.

The biggest con about using a stop loss is that sometimes  the market may fall into a dip(altcoins are usually being traded at low volumes, so even if a single tycoon want to sell all of his holdings, it may cause a sudden and temporally dip) and then your stop loss order will be triggered, and you will sell at a very low price at an oversold position.

Some whales are using people's stop loses to catch assets at a lower price( sudden dip, which causes a lot of stop loses to be triggered, and then the price even goes lower, at a very deep oversold position).

On high volume markets stop loss could be very useful, because sudden dips don't usually happen, and when they happen, it happens for a reason, so it may save you from losing more then you could afford to.

[dissgo]

I still see by the pattern and check the support.
how much volume at the rate with many supports.
if it's slowly going down and history or orders for "pump" is low and "dump" is high, I should sell it before it's down too hard and waiting for buyzone.
you should join the community with devs or other members in it, too.

[satish37]

Before I tell you stop loss ideas based on elliotwaves you must first recognize swing, if you know that , than it should be five pips above or below the swing high or swing low plus spreads. Example in fifth wave it  should be five pips above leg B high when it has started C leg and crossed A leg

[muhammedb]

I think there is no way you can stop loss in business expect you want to stop business

[shamzblueworld]

I do not think stop-loss strategy is a good one in trading crypto currencies. Because almost every time the price fluctuates quite a bit before it takes a steep path upwards, so selling in a loss whereas a sure profit is just at the next station, isn't advisable.
Even though at poloniex, the option is available, but I don't think its good to use, unless you're into very short term (in minutes or max. a few hours) trades.

[Gozie51]

Hello; I'm pretty new at trading crypto. I'm interested about thoughts and strategies about stop-loss percentages and strategies you guys use. at first I would not sell at a loss regardless my motto was "at least 5% profit, always" but if I want to trade more with a limited budget, I need to back out from certain coins even at a loss. that's why I'm interested about this topic.

It is nice to trade with stop loss. When you apply the stop loss rule, it means you have become a "master " of your trade and decision which is the first angle. The second is that, you are not being too greedy to fight the market or force it to go back to profit because the market will always do its own bidding not the trader's ; so that when the trader is able to " read " the direction of the market, the profits trickle in.

Then, the best part /idea why good traders implore stop loss is that, it gives you the opportunity to get back to the market with your balance. Good luck.

[SixOfFive]

I don't know if the stop-loss mechanic is such a good idea when trading crypto; more than often one gets a coin for a certain price, then value drops 40% or so below said price, after which the price absolutely skyrockets. You would basically deny yourself a possible substantial future profit in many cases when you actually implement a stop-loss tactic.

Money management and stop loss technique is always quite helpful while trading in stocks or crypto. I agree that crypto is more volatile as compare to stocks and show some unusual moves, but if you want to play long, these techniques will help you to exit at the right time after booking reasonable profit. Moreover stop loss will help prevent your capital to stuck in a non performing coin for long time.

[anitaraymonds]

Stop loss is a trading tools used by veteran and a good newbie trader. It is used to reduce loss which is inherent in trading. Stop loss is the major part of trading plan and also its opposite which is take profit. As part of a trading plan if when followed will keep you long in the trading
business compare to another trader who has no such tool as stop loss. With stop loss you can decide how much you will lose per each entrance to the market and set the price. If the market goes against you the stop loss price will be triggered and remove you from the market and safe the remaining asset which you can still use and continue your trade when another trading opportunity breaks out.

[BelCanto]

One of the keys to trading is risk management and to do that you need to first define your risk which is done by using stop losses. 

As for how to do it, well, the idea is simple enough.  You place the stop at a price where your trade is in failure, as for how to know what that pointiis that's up to you and the system you employ.   

The other thing to consider with stop losses is that you need to manage them (or not) while you're in the trade. So if you're long bitcoin @ 5200 and it bumps to 6800, you may want to move your stop in to protect your profit . .  or take some profits off the table and let it run. . . or both.

There's a stop strategy out there I found useful in *some* trending markets called the chandelier stop. 

Here's an article on it:

http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:chandelier_exit

Enjoy!

[Indrawan77]

Lost limit is quite important in trading, but rather than seeing from the chart, I like to combine it with the news, so if the price is drop I will find out the reasons why the price is falling, if there is a big chances that it will bounce back then I will not used the loss limit, the example situation was when China want to shut down exchanger,  at that point bitcoin was down severely, but because I knew that it will bounce back,  I ignore the lost limit

But when you trade alt coin you need to implemented  the loss limit, you can lost all your money if you keep on holding the coin when the price is dropping

[xurestey]

Stop-loss has occurred in bourses such as bittrex and Poliniex. It helps the investor set the selling price when the price is falling. This is a good way to limit losses.

[hisuka]

Stop-loss has occurred in bourses such as bittrex and Poliniex. It helps the investor set the selling price when the price is falling. This is a good way to limit losses.

This is very important to set stop loss when trading in any altcoins. This could really helps anyone to get rid of loses, because some traders doesnt use this stop loses that is why most suffer loses of funds.

[entrepmind23]

Stop loss is important when you trade so that you can prevent being dumped on and if the price goes lower and you already lose half of the value of your account then you would wish that you should just have sold it when price was way above. Crypto is so volatile so there would be times when it reached your stop loss and then shoot up in which case you will miss out some profits but there are other opportunities to trade. You should always manage risk because it will burn your account if you don't use stop loss. The lower the price gets, the higher the percentage it should go back up in order for you to at least break-even so you might want to think twice of using stop loss or not. Example below:

Percentage Loss     Percentage Rise for the Price to Break Even
5%                             6%
10%                           11%                                                         
20%                           25%
30%                           43%
40%                           67%
50%                           100%

If you lose half of the value of your position then it needs to double in price in order for you to break-even.